Export rebates pump up DaimlerChrysler's profits

Leonard Neill
EXPORT REBATES have played a major role in DaimlerChrysler SA achieving an operating profit of R171,51 million compared with its projected figure of R31,98 million for the 2001 financial year.
The company has not disclosed its full profit figures for the year as it is not listed, but net profit was more than 5% of turnover, according to Rudi Borgenheimer, management board member responsible for finance.
Stating that the results were Ôthe best in our history', he said turnover from exports totalled R1 billion in 1998 but was more than R5 billion last year from both vehicles and components. This will grow further this year, he said, forecasting R6 billion for 2002.
Turnover increase
"Our export focus on components and vehicles is part of a strategy for success and profitability because with export rebates we can offset import duties. This makes us more flexible with imports and with that we can grow our market share and profit."
Sales volumes last year rose by 30%, he said, but are likely to remain static this year because of price increases of up to 20% due to the devaluation of the rand.
The company's chairman and chief executive, Christoph Kopke has stated, however, that the operating profit increase is not the result of the rand's devaluation.
"We export in rands, so there is no push in turnover from the devaluation of the currency." The operating profit, he said, was achieved on an increase in total turnover to R13,9 billion last year from R8,5 billion in 2000.
Production output increased last year by 30 000 units to 52 000 units, and is expected to grow this year to about 56 700 units.