Mercedes 1998 Annual Report Download - page 6

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Dear Shareholders and Employees:
1998 was a historic year. A year all of us will remember.
It saw the creation of DaimlerChrysler – a new company formed from a merger which was
completed in record time and with the overwhelming support of you, our shareholders and our
employees. A new company with a proud combined heritage, with unparalleled products and
brands, and with extraordinary opportunities that neither Daimler-Benz nor Chrysler alone
could have dreamed of.
A GREAT START. The people of DaimlerChrysler have made a great start in turning this potential
into performance.
In 1998:
쐍Revenues grew to € 131.8 billion (US $146.5 billion), up 12 % compared to combined 1997
results.
쐍Operating profits increased to € 8.6 billion (US $9.6 billion), up 38 %.
쐍Net income, excluding extraordinary one-time costs related to the merger, grew to € 5.2
billion (US $6.1 billion), up 29 %.
쐍Earnings per share grew by 30 % to € 5.58 (US $6.55), again excluding extraordinary one-
time costs related to the merger.
쐍We sold more than 4.4 million cars, light trucks and commercial vehicles, and gained market
share in virtually every market in which we operate – despite intense competition.
쐍DaimlerChrysler Services (debis) achieved record results and further strengthened its
competitive position.
쐍DaimlerChrysler Aerospace (Dasa) had its best year ever.
쐍As a result of our strong performance, DaimlerChrysler created 19,000 new jobs.
These results are a tribute to the hard work and dedication of our people. They show that all of
us kept our eye on the ball, despite the extra work involved in the merger.
With what we have achieved so far, with the way in which we are bringing the two companies
together, with our exciting plans for the future: DaimlerChrysler is in pole position to deliver
extraordinary value to our customers, our shareholders and our employees in the years ahead.
DELIVERING VALUE. Our proposal to declare a dividend of € 2.35 per share, reflects our
commitment to shareholder value. For former Chrysler shareholders, this represents a
continuation of the high dividend levels of recent years. For former Daimler-Benz shareholders,
it is a significantly better return than in the past.
Also, we are the first company in the world to introduce a “global share,” which is traded as a
registered share – without the need for depository receipts – on 21 stock exchanges worldwide.
We were one of the first companies to adopt the new European currency, the euro, as our
corporate currency. By moving early, we already reap competitive benefits from this change.
And this annual report is one of the first ever to report in euro.
2
CHAIRMEN’S LETTER