ON FEBRUARY 28 DaimlerChrysler AG presented its results for 1999, the first year with fully consolidated results from Adtranz after ABB sold its 50% stake in the business. Operating profit at DaimlerChrysler was up 20% at 10·3bn euros, after adjustment for one-time effects including restructuring expenses at Adtranz, where revenue was up 7% at 3·6bn euros but ’earnings remained negative’.
DaimlerChrysler says that restructuring of production activities in Germany contributed to a reduction of the Adtranz operating loss in 1998, but additional measures announced on November 12 last year (RG 12.99 p751) ’again had a negative effect on operating profit’. Through comprehensive reorganisation of production, concentration on core competencies and ’adjustment of capacities to market demand’, DaimlerChrysler is ’confident that Adtranz will be able to achieve and sustain profitability’.
Against a record group operating profit of 11bn euros before one-time effects, the division of DaimlerChrysler including Adtranz and engine-builder MTU recorded a loss of 179m euros in 1999. This compares with a loss of 79m euros the year before.
The Berlin-based Stadler Pankow GmbH joint venture between Adtranz and Stadler Fahrzeuge of Switzerland came into being on March 1. It will build RegioShuttle railcars and special versions of Adtranz’s Incentro LRV and Itino regional train families, plus shunting locos and Stadler articulated railcars.