We assume for the analysis of the group that the impact of IFRS in year 2004 is insignificant given that IFRS and US GAAP are closed. Moreover a complete analysis was impossible given that we didn't have all the figures before 2004. From 1998 to 2006 we can see that inventories increased from $11,796 to $17,750. At the same time Sales increased, slightly, from $131,782 to $151,589 thus the inventory turnover in terms of the number of days increased from 37 to 43 days with a top in 2005 at 47 days. In 2000, the increase in inventories was mainly due to higher stocks of used vehicles at Commercial Vehicles, especially in North America. Mercedes-Benz Passenger Cars also contributed to the increase in inventories due to the growth in business and upcoming new product launches. In 2001 the increase in inventories was primarily caused by the market launch of new products in the Mercedes-Benz Passenger Cars & smart segment (0.9 billion). The de-consolidation of the Adtranz Group had an offsetting effect of 0.5 billion. In 2002 inventories increased by 10.3 billion, in particular as a result of pending market launches for new products in the Mercedes Car Group and higher levels of used vehicles in the Services Division. On the other hand, the inventory in the Chrysler Group Division decreased.
[...] in 2001). - After these strong mutations, we can note that the ratio has been stabilised. This is in accordance with the following graph. In fact we can note a stabilization of net income and total assets from 2004 and 2006 (total assets: and net income: during this period of time) / ROCE: - Concerning the evolution of ROCE we can note the same periods of time as above. In fact the first period, from 1998 to 2002 reveals strong difficulties for the DaimlerChrysler Group with strong variations between the years and a negative ROCE at the end of FY2001. [...]
[...] The general and administrative expenses, including the turnaround plan expenses, are controlled; the effort in R&D is constant of the sales). The average R&D expenses amount to an annual investment of 5.5 bn, in order to guarantee the key factors of success in the industry, namely price, quality, reliability, safety, consumption and services. The investment in research and development is indeed a competitive advantage and a primordial factor of competitiveness and future growth. The share of the Mercedes Group booms from 30% to 45% to guarantee the technology and the comfort of its products. [...]
[...] Daimler-Chrysler seizes more particularly Asian opportunities, with a growth which peaks at 50% in 2004, linked to the strategic alliance with their partner Mitsubishi Motors Corporation and the joint-venture with Hyundai Motor Company / by business unit: Daimler-Chrysler has a portfolio of highly attractive and clearly positioned brands to cover all the segments of the market. To satisfy every customer, the company has several business units which sell different products. The revenue is generated by five business units and its variation is explained by the change of the volume, the sales price and the mix products. [...]
[...] The second trend, from 2004 to 2006 is a slight decrease from 207 days to 181 days. Here again is widely due to the receivable trend. When we make the comparison with working capital in days for leading listed European automotive companies from1998 to 2003 we basically find the same trend which seems to be shorter with an increase from 40 to 63 (Source: Exane BNP Paribas). However we see that the level of working capital for European automotive sector is much smaller than Daimler- Chrysler's one. [...]
[...] The results of both years were significantly affected by charges for restructuring activities, impairments recognized on fixed assets, and gains realized on the sale of investments. In 2004, DC posted operating cash flows of 11 million euros (2003: 17 million euros). This decrease is mainly due to the charges of one specific part of the company (smart). Without small variations, there are two main trends: operating cash flows are quite stable from 1999 to 2003 at 17 billion euros in average against 12 million euros in average after. [...]
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