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DaimlerChrysler Aerospace Reports Record Profits of 623 Million Euros for 1998



;STUTTGART/AUBURN HILLS ---DaimlerChrysler expects steady growth among all of its businesses, especially those operating within the company's two key markets of North America and Western Europe. According to an outlook presented at the DaimlerChrysler annual press conference in Stuttgart on March 31, the automotive brands are expected to achieve further growth even within a stagnating or slightly declining market environment in some parts of the world
;The company expects revenues to increase to e 137 billion (euro) in 1999 from e 131.8 billion in 1998, based on the high demand for DaimlerChrysler products and the upward business trend for the first months of the year. By the year 2001, DaimlerChrysler projects an increase in revenues of more than e 20 billion to e 153 billion, with all businesses contributing to this growth. Profitability is also expected to increase further in the years to come.
;In the first two months of 1999, total revenues increased by 6 percent to e 20.2 billion compared to e 19.0 billion for the same period in 1998. The breakdown by division is as follows: Passenger Cars: Mercedes-Benz, smart: e 4.8 billion / + 12 percent Passenger Cars and Trucks: Chrysler, Plymouth, Jeep, Dodge e 9.2 billion / + 0 percent * Commercial Vehicles: Mercedes-Benz, Freightliner, Sterling, Setra e 3.4 billion / + 9 percent DaimlerChrysler Services e 2.0 billion / + 17 percent.
;DaimlerChrysler Aerospace e 1.0 billion / + 11 percent Other e 0.4 billion / + 4 percent * Business developments are favorable with Dollar-based increases of 4 percent. This is reduced, however, by currency changes when converting to the Euro. (...)
;All divisions posted profit increases in 1998 and were able to surpass the 15.5 percent RONA performance target set by DaimlerChrysler for its business units. This minimum requirement represents the average cost of capital before taxes and is calculated as a quotient of operating profit and net assets.(...)

;With an operating profit of e 623 million, 1998 was the most successful year for DaimlerChrysler Aerospace (Dasa) since its founding in 1989. Compared to the 1997 figure of e 284 million, operating profit has more than doubled. The favorable performance of Dasa demonstrates its strengthened earning power based on the success of the restructuring and optimization programs.
;RONA at Dasa reached 43 percent, up 6.8 percentage points. This extraordinarily high figure is due to the relatively low net assets within the aerospace business and therefore not directly comparable with the returns achieved in other industrial activities of the group.

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DaimlerChrysler Aerospace Reports Record Profits of 623 Million Euros for 1998