DaimlerChrysler SA is expected next week to report a significant rise in profits for the year to December after its parent company’s operating profits quadrupled in 2002.

DaimlerChrysler SA is expected next week to report a significant rise in revenue and profits for the year to December after its parent company’s operating profits quadrupled in 2002.

Significantly, the multinational's US-based Chrysler unit returned to profit for the first time in more than 24 months last year after major restructuring.

The DaimlerChrysler Group on Thursday published its consolidated financial statements and its divisions’ results for 2002. In this period, it achieved an adjusted operating profit of R50,8 billion in 2002 (R60,4 billion including one-time effects), which was more than four times higher than the R11,4 billion reported for 2001.

According to a spokesman for DaimlerChrysler, all of the group’s divisions, and the successful implementation of the plans for increasing efficiency at Chrysler Group and Freightliner division, contributed to this increase.

Group net income excluding one-time effects rose from R6,1 billion to R28,9 billion. Including one-time effects, net income increased to R41,1 billion, after a net loss of R6,1 billion in the previous year. DaimlerChrysler’s revenues decreased by two per cent to R1 310,5 billion.

The Mercedes Car Group division surpassed the previous year’s results in terms of unit sales, revenues and operating profit. Operating profit of €3.02 billion was slightly higher than in the previous year (€2.96 billion).

The rapidly-recovering Chrysler Group achieved an operating profit excluding one-time effects of R11,6 billion, compared with an operating loss of R19,1 billion in 2001.

”In view of the economic situation, on the whole we are satisfied with the results for 2002. This is one important step on the road to sustainable profitability,” said DaimlerChrysler chief executive Jürgen Schrempp.

“A further increase in political and macroeconomic uncertainty seems likely in 2003, with possible effects on DaimlerChrysler’s business developments.

“DaimlerChrysler plans to achieve higher earnings this year than in 2002. However, a precondition for this increase is that conditions remain stable in the most important markets,” he added.

Original article from Car