Mercedes 2006 Annual Report Download - page 46

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In the year 2006, DaimlerChrysler increased its total revenues by 1% to €151.6
billion; unit sales of 4.7 million vehicles did not quite match the level of the prior
year. Operating profit of €5.5 billion was lower than our original target of more
than €6 billion. This was primarily due to the unexpectedly difficult market and
competitive situation in the US automobile market and the resulting loss at the
Chrysler Group. However, we made progress towards our goal of sustained pro-
fitable growth, due to the other divisions surpassing their targets: The Mercedes
Car Group significantly improved its profitability in 2006, the Truck Group posted
record earnings, and the Financial Services division increased its operating profit
once again. The Chrysler Group took additional measures to improve efficiency
and launched various new models that are specifically designed to meet changing
market requirements. The efficiency-improving programs running in all areas of
the Group are showing results. Overall, in the year 2006 we put the Group on
track for profitable growth in the coming years. Nonetheless, earnings in 2007
– reported for the first time according to IFRS – will be impacted once again by
the actions taken to achieve sustained profitability at the Chrysler Group. Our
medium-term goal is to achieve a return on net assets of at least 10% at the
Group level.
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