DaimlerChrysler reports Q1 2007 results with IFRS

DaimlerChrysler introduced earlier this week the report on the first quarter of 2007, but this time in accordance with International Financial Reporting Standards (IFRS). As reflected in its income statement, the pre-tax yield, a measure of operating profit, which had previously been used to discuss the profitability of the Group and its divisions, has been replaced by earnings before interest and taxes (EBIT ). And earlier net income, which is used to report income after tax, the net profit is now. Due to these changes, internal financial management and external reporting handled more closely. Cost of sales, and the savings that were previously accounted for in the van, buses, and other segments or under eliminations have been allocated to the divisions. Eventually, this process leads to divisions of the income of the effects shown previously in the level of the group. From $ 1579 million last year, DaimlerChrysler increased its EBIT to $ 2730 million in the first quarter of this year. The restructuring costs related to the implementation of the 1222 million Chrysler Group Recovery and Transformation Plan reduction of their income. Troubled suppliers were always an additional charge of $ 160 million and an end to the implementation of the new management model valued at 72 million dollars of financial aid. However, the 2090 million of income was achieved in connection with DaimlerChrysler in the capital of EADS and in part by the payment of the $ 152 million cost of the restructuring programme Power8 at EADS. The improved results of operations at the Mercedes Car Group and the Panel Truck greatly contributed to increased earnings in the Chrysler Group. As for the aspect of improving the efficiency of the programs, defined measures to improve the utilization of the progress of services for production. In fact, the depreciation of property, plant and equipment has been reduced. This step made an unquestionable impact on the Group& 39;s EBIT amounted to 285 million dollars. So break it down, $ 202 million is considered EBIT Mercedes Car Group, $ 32 million to the Panel Truck and $ 51 million is considered at Van, buses, and others. Since last year 1045 million of net profit, DaimlerChrysler reached more than 50 percent increase this year. Net profit for the first quarter of 2007 amounted to $ 2637 million. The manufacturer came to $ 2.53 earnings per share, another more than 50 percent increase from last year& 39;s 1.03 dollars. The company sold 1.1 million vehicles worldwide during the first quarter of 2007. Putting this in terms of revenues, this amounts to 47.3 million dollars. DaimlerChrysler experienced a decline of 6 percent in revenues last year 50.1 million. What lies ahead of DaimlerChrysler? DaimlerChrysler anticipates that the future growth in the global industry. The manufacturer expects for the whole year of 2007, demand for vehicles in North America and Western Europe will be even weaker than in 2006. But in Asia, Eastern Europe and Latin America, the company expects greater demand for commercial vehicles and passenger cars. In the field of commercial vehicles business, the company expects a dramatic drop in demand for trucks in North America and Japan, but to achieve good earnings, Western European markets remain stable. Throughout the year 2007, DaimlerChrysler hopes to reach an EBIT of $ 9.4 million compared with recent years of $ 7.4 million. Key factors affecting revenue this year is the gain of $ 2.1 million which was conducted on the transfer of interest in EADS, and charges of $ 1.3 million that resulted from the implementation of the Recovery Plan and Transformation at the Chrysler Group and $ 0.8 million from new management model. These anticipated revenues somehow say the current situation of DaimlerChrysler. About DaimlerChrysler A German automotive company DaimlerChrysler is the fifth largest automaker in the world. That produces cars and trucks in different brands like Chrysler, Dodge, Jeep, Mercedes-Benz, Smart, Maybach, Mopar and GEM. It is also a manufacturer of many famous and above the line of auto parts such as Mercedes OEM part.



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