Mercedes 1998 Annual Report Download - page 41

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COMMERCIAL VEHICLES
37
The Commercial Vehicles Division continued its
profitable growth in 1998. Revenues, sales and
production reached all-time highs. Operating profit
rose to € 0.9 billion (1997: € 342 million). Business
developed especially well in North America where
Sterling, a new truck brand, got off to an excellent
start. The truck and van business also grew
significantly in Western Europe, and in Latin
America, the Sprinter van was particularly
successful. Despite a difficult market in Asia, we
continue to target strategically important markets
in the region.
FAVORABLE MARKET DEVELOPMENT IN WESTERN EUROPE AND
NORTH AMERICA. The commercial vehicle markets in Western
Europe and North America developed very favorably in 1998,
while demand in the Asian markets remained significantly
lower than in the previous year as a result of their economic
and financial crisis. In various South American countries as
well, and particularly in Brazil, the growing economic
uncertainty led to a definite decline in commercial vehicle
demand, especially in the second half of the year.
In Western Europe, there was market growth in nearly every
region and in all market segments. The revival in demand was
especially pronounced for trucks in the category over 6 tons,
notably for heavy-duty trucks over 16 tons. Sales in the United
States were up 11% to 345,900 vehicles in Classes 6 to 8 (over
8.8 tons), a particularly important market segment for
Freightliner and Sterling.
COMMERCIAL VEHICLE DIVISION ON GROWTH COURSE. The
Commercial Vehicle Division continued its growth course in
1998. Revenues rose by 16% to a new record high of € 23.2
billion. Vigorous growth was achieved in the United States (up
48% to € 6 billion) and in Western Europe outside of Germany
(up 15% to € 5.4 billion). In Germany, the previous year’s level
was surpassed at € 6.4 billion (up 12%), while in South America
revenues dropped to € 2.1 billion (-2%). With worldwide sales
of 489,700 (1997: 417,400) units, Mercedes-Benz, Freightliner,
Sterling and Setra commercial vehicle sales set a new record as
well. The Commercial Vehicles North America, Vans Europe,
and Trucks Europe units performed particularly well.
1,110
27,175
7,169
8,309
5,823
3,792
2,390
2,459
329
976
837
Operating Profit
Revenues
Trucks Europe
Commercial Vehicles
North America
Vans Europe
Powertrains
Buses Europe
Commercial Vehicles
Latin America
Unimog
Investments in plant,
property and equipment
R & D
Production (Units)
Sales (Units)
Employees (12/31)
98
US $
98
€
97
€
946
23,162
6,110
7,080
4,963
3,232
2,037
2,096
280
832
714
492,643
489,680
89,711
342
20,012
5,572
4,965
4,435
2,946
1,931
2,242
320
601
602
422,438
417,384
85,071
Amounts in Millions