Mercedes 2001 Annual Report Download - page 59

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Analysis of the Financial Situation 55
Adjusted to exclude one-time effects, the Group
recorded an operating profit of €1.3 billion, which was
significantly lower than the comparable prior year’s
operating profit of €5.2 billion. This decline was mainly
attributable to the forecasted loss at Chrysler Group
and the slightly positive result of Commercial Vehicles.
These segments suffered in particular from the intensely
competitive situation in the North American markets.
A further reduction in operating profit resulted from
the Group’s share of the operating result at Mitsubishi
Motors, which was mainly affected by declining unit
sales.
Operating profit of Mercedes-Benz Passenger Cars &
smart above previous year’s level. The Mercedes-Benz
Passenger Cars & smart division achieved an operating
profit of €3.0 billion, exceeding the prior year’s result
by €0.8 billion. Operating profit for 2001 includes an
impairment charge allocated to the segment relating to
the Group’s e-business activities. The prior year’s oper-
ating profit included one-time charges of €0.7 billion
mainly due to the strategic review of the smart brand
and the initial application of the European Union’s
end-of-life vehicle directive.
Adjusted for these one-time effects, the division’s
operating profit was slightly higher than in the prior
year. The continued excellent demand for the S-Class,
particularly after the successful market launch of the
new SL, and the C-Class, with its strong rise in unit
sales for the sedan as well as the new station wagon and
sport-coupe launched in March 2001, contributed to
the positive development in operating profit. However,
this trend was partially offset by a decline in unit sales
of E-Class vehicles due to life-cycle changes.
The operating loss at smart was significantly
reduced due to further sales increases of the city coupe
and smart cabrio.
Operating results of Chrysler Group negatively
impacted by restructuring and intense competition.
Chrysler Group posted an operating loss of €5.3 billion
in 2001 compared to an operating profit of €0.5 billion
in 2000. The 2001 operating loss includes restructuring
charges of €3.1 billion recorded in connection with the
turnaround plan implemented in 2001 in response to
an increasingly competitive and weakening U.S. auto-
motive market. The turnaround plan is designed to
improve Chrysler Group’s financial performance and
market position. The restructuring charges primarily
related to workforce reductions, asset write-downs and
contract cancellation costs. The operating loss also
includes impairment charges allocated to Chrysler Group
relating to DaimlerChrysler’s e-business activities.
Operating profit in 2000 included a charge resulting
from the initial application of the European Union’s
end-of-life vehicle directive.
Industrial Business
Financial Services
DaimlerChrysler Group
Operating Profit (Loss) adjusted for One-time Effects
In millions
696 782 4,621
501 563 592
1,197 1,345 5,213
01
US $
01
€
00
€
Mercedes-Benz
Passenger Cars & smart
Chrysler Group
Commercial Vehicles
Services
Other Activities
Eliminations
DaimlerChrysler Group
One-Time Effects included in Operating Profit (Loss)
by Segments
In millions
(9) (10) (729)
(2,758) (3,098) (30)
(503) (565) (41)
30 34 1,816
870 976 3,523
---
(2,370) (2,663) 4,539
01
US $
01
€
00
€