Mercedes 2001 Annual Report Download - page 56

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52 The DaimlerChrysler Shares
Further falls in equity prices. Shareholders’ hopes for a
stock-market recovery were disappointed in 2001,
mainly due to the US recession and the terrorist attacks
of September 11. At the same time, economic growth
slowed in Europe and Japan.
International share indices reached their lowest
point for the year after the attacks in the United States.
The bear market was followed by a temporary strong
recovery, as investors became convinced that the
medium- and long-term economic effects of the attacks
would not be as severe as they had initially feared. The
fact that the US central bank lowered its Fed Funds
Rate eleven times to 1.75%, the lowest level since 1961,
was also regarded as positive. In addition, the oil price
fell sharply after the events of September 11, and com-
panies worldwide implemented extensive cost-cutting
measures, both of which are expected to have positive
effects on earnings.
Despite the strong recovery in the fourth quarter,
most important share indices declined for the second
consecutive year in 2001. (see table on page 53).
Stock markets depressed by fear of recession
■Declining stock markets for second consecutive year
■Price falls triggered by terrorist attacks in September
■Strong recovery in the fourth quarter
■MSCI World Index Automobiles down 9% over the year
■DaimlerChrysler shares performed better than DAX and MSCI World Index Automobiles in 2001
Increase in DaimlerChrysler share price.
DaimlerChrysler’s stock began 2001 at the low level of
€44.41. In most of the first half of the year, the price
fluctuated between €50 and its peak for the year of
€58.19, which was reached on May 3. However, from
the middle of July the price of our shares could not
escape the sharp downward trend of the market, espe-
cially after the effects of the terrorist attacks, and fell to
a low of €27.24 over the two months to September 21.
The subsequent 77% recovery to €48.35 by the end of
the year was significantly stronger than that of the
DAX (+46%) and of the MSCI World Index Automobiles
(+24%). During this period, DaimlerChrysler’s shares
recorded the second highest price rise of all automotive
shares. Over the whole of the year, DaimlerChrysler’s
share price rose by 8%, making it one of only four DAX
stocks with an increase in value during 2001. However,
by the end of January 2002, our share price had fallen
by about 3% in line with a generally weak stock market.
Trading volume in DaimlerChrysler stock world-
wide was about 1.3 billion shares in 2001 (2000: 1.0
billion) of which 130 million shares were traded on US
stock exchanges (2000: 127 million) and 1,169 million
in Germany (2000: 888 million).
Prize for best communication with investors. At the
end of October 2001, DaimlerChrysler received the
“Investor Relations Magazine Euro Award 2001” for the
best communication with private investors. The prize
was awarded in recognition of the Investor Relations
department’s intensive support work in individual
dialogue and organized events, as well as for the
quality of the Investor Relations section of the corporate
web-site, which is frequently used by both private and
institutional investors as well as by analysts.
Share Price Index
60
70
80
90
100
11 0
120
130
140
Jan. 3
2001
March
2001
May
2001
July
2001
Sep.
2001
Nov.
2001
Jan. 31
2002
MSCI Automobiles Index
DAX
DaimlerChrysler