Mercedes 2002 Annual Report Download - page 54

48 |Other Activities
Other Activities
High incoming orders at MTU Aero Engines despite difficult
engine market |EADS achieves earnings and revenues
targets in spite of challenging market conditions |Good
progress with restructuring at Mitsubishi Motors
Significant increase in earnings in 2002
The Other Activities segment consists of MTU Aero
Engines and shareholdings in EADS (33%) and
Mitsubishi Motors Corporation (37.1%), together with
Corporate Research, our real-estate activities, and our
holding and finance companies. Our 40% holding in
TEMIC was also part of this segment until April 1, 2002,
when it was sold to Continental AG. Our share of the
operating results of EADS and Mitsubishi Motors is
included in the operating profit of DaimlerChrysler one
quarter later. DaimlerChrysler’s operating profit for
2002 thus includes these companies’ contributions for
the period of October 2001 through September 2002.
The operating profit of the Other Activities segment
totaled 10.9 billion in 2002 (2001: 11.2 billion), and
includes a one-time gain of 1156 million from the sale of
our remaining 40% stake in TEMIC and related activities.
In the year 2001, there was an aggregate one-time gain
of 11.0 billion representing the net effect of the sale
of Adtranz and 60% of TEMIC, the Group’s share of the
one-time income generated at EADS by the share
swap associated with the formation of Airbus SAS, and
the charge arising from the restructuring program at
Mitsubishi Motors. Other Activities’ adjusted operating
profit totaled 1747 million in 2002 (2001: 1205
million).
MTU Aero Engines
Global operations at MTU Aero Engines
Together with its partners, the MTU Aero Engines
business unit develops and manufactures civil and
military aircraft engines as well as industrial gas
turbines. As the world’s largest independent provider
of maintenance services for civil-aviation engines,
MTU Aero Engines also performs repair and overhaul
on aircraft engines and on industrial gas turbines.
2,093
2,014
2001
3
2002
3
2002
US $
Amounts in millions
2,215
2,131
8,376
2,487
2,183
7,839
MTU Aero Engines
Revenues
Incoming orders
Employees (Dec. 31)
High level of incoming orders despite ongoing
difficulties in the engine market
The effects of the terrorist attacks of September 11,
2001 led to a significant decline in revenues in the civil
aviation sector in 2002, which also impacted business
developments at MTU Aero Engines.
The business unit’s revenues decreased by 11%
compared with the previous year to 12.2 billion.
A particularly sharp decline of 30% was recorded in the
civil engines and spare-parts business. This decline was,
however, partially offset by an increase in revenues at
the maintenance locations and in the military business.
The latter benefited in the year under review primarily
from the production start-up of the EJ200 engine used
in the Eurofighter jet.
Incoming orders of 12.1 billion in 2002 nearly
reached the level of 2001 (-2%). The high level of orders
for the GP7000 engine for the Airbus A380 was offset
by the depreciation of the US dollar against the euro in
2002. Additionally, orders from government authorities
were down 9%, mainly due to the delay in finalizing
contracts for the A400M military transport plane.
Despite difficult markets in 2002, MTU Aero Engines
GmbH made a significant positive contribution to Group
operating profit.
2001
3
2002
3
2002
US $
Amounts in millions
947
783
903
747
1,181
205
Other Activities
Operating profit
Operating profit adjusted