Mercedes 2002 Annual Report Download - page 164

International stock markets in 2002
Following a weak 2001, international capital markets trended
lower again in 2002. For the third year in a row, leading inter-
national indices, such as the S&P 500, the Dow, the Nikkei,
Euro Stoxx 50 and the DAX, finished the year significantly
lower than they began. The DAX recorded the sharpest drop
among major global indices ending the year down 44%.
The downward trend began in May, after relative stability in
the first few months of the year. Gloomier sentiment followed
early indications that the economic recovery in the US and
Europe might not proceed as rapidly as had been anticipated.
Share values deteriorated further also as a result of investor
uncertainty resulting from poor corporate earnings and account-
ing scandals.
In the fall, markets were further negatively impacted
by the general weakness of the world’s major economies and
speculation concerning possible military action in the Middle
East. Nevertheless, European automotive stocks remained rel-
atively firm in this difficult market environment and performed
significantly better than the S&P 500, the Nasdaq, the DAX
and Euro Stoxx 50.
DCX performance in 2002
The DaimlerChrysler share was unable to escape the effects of
world market conditions. The share price was impacted at the
beginning of the year by external forecasts of a likely decline
in automotive sales, particularly in the US, and the drop in
earnings that this might entail. However, between March and
May when it became apparent that demand in the US was
stronger than expected, the DaimlerChrysler share price rose
and remained stable at this higher level. Thus, in the period
following the announcement of the results for 2001 on
February through to the the end of May, DCX shares rose
37% to 155.44. This made the share one of the best performers
in the automotive sector and the strongest in the DAX.
Although DaimlerChrysler’s earnings in the second and third
quarters significantly exceeded market expectations and
the company had raised its earnings forecast for the remainder
of the year, DCX was unable to escape the general malaise in
the markets.
The DaimlerChrysler Share
158 |The DaimlerChrysler Share
Thus the share price fell in August and September as
a result of the expectation of a sales decline in international
automotive markets in 2003, the possibility of armed conflict
in the Middle East and a relative sluggishness in the capital
markets. DCX closed on December 30 at 129.35 in Frankfurt
and at $30.65 in New York. Nevertheless, DCX was one of
the few shares in 2002 to outperform the DAX over the year
as a whole.
DaimlerChrysler stock was again among the most liquid
in the world in 2002, with a global trading volume of 1.6 billion
shares (2001: 1.3 billion), of which 154 million were traded
in the US (2001: 130 million) and 1,469 million in Germany
(2001: 1,169 million).
Investor relations activities
Activities at DaimlerChrysler Investor Relations during the year
under review focused particularly on providing consistent
reliable and timely information on the company to institutional
investors, financial analysts, rating agencies and shareholders.
The most important channels for informing our shareholders
on corporate strategy and the company’s performance were
the Annual Meeting in Berlin, which was attended by more
than 10,000 people, and the Investor Relations section of the
DaimlerChrysler website. Our communication activities
for institutional investors and analysts in 2002 included road-
shows in the major financial centers of Europe, North America
and Asia, along with one-on-one meetings at our headquarters
in Stuttgart. We also provided information on our quarterly
results to the investment community through conference calls
that were simultaneously broadcast on the Internet.
Disappointing capital markets in 2002 |Sluggish economic
conditions and unstable political environments create
uncertainty |DCX outperformed the DAX during 2002