Mercedes 1998 Annual Report Download - page 72

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Revenues 30 154,615 131,782 117,572 101,415 7,908 6,545 5,548
Cost of sales 5 (121,692) (103,721) (92,953) (78,995) (6,157) (5,075) (4,347)
Gross margin 32,923 28,061 24,619 22,420 1,751 1,470 1,201
Selling, administrative and other expenses 5 (19,041) (16,229) (15,621) (13,902) (921) (760) (652)
Research and development (5,833) (4,971) (4,408) (4,081) – – –
Other income 6 1,425 1,215 957 848 106 82 58
Merger costs 1 (803) (685) – – – – –
Income before financial
income and income taxes 8,671 7,391 5,547 5,285 936 792 607
Financial income, net 7 896 763 633 408 23 4 –
Income before income taxes
and extraordinary item 9,567 8,154 6,180 5,693 959 796 607
Tax benefit relating to a special distribution 1,4871)
Income taxes (1,005)2)
Total income taxes 8 (3,607) (3,075) 482 (1,547) (361) (307) (234)
Minority interest (153) (130) (115) 23 (2) (1) (2)
Income before extraordinary item 5,807 4,949 6,547 4,169 596 488 371
Extraordinary item: loss on early
extinguishment of debt, net of taxes 9 (151) (129) – (147) – – –
Net income 5,656 4,820 6,5473) 4,022 596 488 371
Earnings per share 31
Basic earnings per share
Income before extraordinary item 6.05 5.16 6.90 4.24 – – –
Extraordinary item (0.16) (0.13) – (0.15) – – –
Net income 5.89 5.03 6.903) 4.09 – – –
Diluted earnings per share
Income before extraordinary item 5.91 5.04 6.78 4.20 – – –
Extraordinary item (0.16) (0.13) – (0.15) – – –
Net income 5.75 4.91 6.783) 4.05 – – –
1998
Note (Note 1) 1998 1997 1996 1998 1997 1996
(in millions, except per share amounts) $ € € € € € €
Consolidated
Year ended December 31,
CONSOLIDATED STATEMENTS OF INCOME
CONSOLIDATED STATEMENTS OF CASH FLOW
68
1) Reflects the tax benefit relating to a special distribution (see Note 20).
2) Includes non-recurring tax benefits of € 1,003 relating to the
decrease in valuation allowance as of December 31, 1997, applied to the
domestic operations that file a combined tax return.
3) Excluding non-recurring tax benefits, 1997 net income would have been
€ 4,057 and basic and diluted earnings per share would have
been € 4.28 and € 4.21, respectively.
Financial Services
Year ended December 31,
The accompanying notes are an integral part of these Consolidated Financial Statements.
All balances have been restated from Deutsche Marks into Euros using the exchange rate as of January 1, 1999.