Mercedes 2003 Annual Report Download - page 99
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Please find page 99 of the 2003 Mercedes annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.94
Eliminations in the operating profit. Operating profit
eliminations primarily result from the leasing operations in
Germany and from the financing of European dealers. From a
group perspective, the profits generated from vehicle deliveries
between the segments were unrealized and thus eliminated.
| 95
Reconciliation of operating profit to income (loss) before
financial income. “Pension and postretirement benefit (expenses)
income, other than current and prior service costs and settlement/
curtailment losses” is the sum of interest cost, the expected return
on plan assets and the amortization of unrecognized net actuarial
gains or losses. Operating profit excludes these components of the
net periodic pension and postretirement benefit (expense) income,
since they are driven by financial factors and do not reflect the
operating performance of the segments. The significant change
compared with 2002 was primarily a result of reduced expected
returns on plan assets mainly due to a reduction in the long-term
return rate on plan assets.
“Operating (profit) loss from affiliated and associated companies
and financial (income) loss from related operating companies”
includes the contributions to earnings from our operating
investments, which are reported as a component of financial
income (expense), net, in the consolidated statements of income
(loss). These contributions are allocated to the operating profit
(loss) of the respective segments. In 2003, this resulted in a
negative overall contribution to operating profit of €19 million. The
decrease compared with the prior year was primarily a result of a
negative contribution to earnings from the equity investment in
Mitsubishi Motors Corporations and lower profit contributions from
the equity investment in EADS.
“Operating profit from discontinued operations” shows the opera-
ting profit of MTU Aero Engines, which is reported as discontinued
operations in the consolidated statements of income (loss).
94
In millions
Consolidated Statements of Income (Loss)
US $ €€
171,870
(138,474)
33,396
(22,388)
(7,018)
899
(591)
4,298
(2,469)
(1,078)
(3,547)
751
(1,234)
(44)
(527)
18
1,111
(38)
564
136,437
(109,926)
26,511
(17,772)
(5,571)
713
(469)
3,412
(1,960)
(856)
(2,816)
596
(979)
(35)
(418)
14
882
(30)
448
147,368
(119,624)
27,744
(18,166)
(5,942)
777
(694)
3,719
–
2,206
2,206
5,925
(1,115)
(15)
4,795
82
-
(159)
4,718
Revenues
Cost of sales
Gross margin
Selling, administrative and other
expenses
Research and development
Other income
Turnaround plan expenses –
Chrysler Group
Income (loss) before financial Income
Impairment of investment in EADS
Other financial income (expense), net
Financial income (expense), net
Income (loss) before income taxes
Income taxes
Minority interests
Income (loss) from continuing
operations
Income (loss) from discontinued
operations 1
Income (loss) on disposal of discontinued
operations 2
Cumulative effects of changes
in accounting principles:
transition adjustments resulting from
adoption of FIN 46R and SFAS 142,
net of taxes
Net income (loss)
1 DaimlerChrysler sold its 100%-stake in MTU Aero Engines on December 31, 2003. Therefore the
income of MTU Aero Engines is included in the “Income (loss) from discontinued operations.”
Prior years amounts have been restated.
2 Gain on disposal of the MTU Aero Engines Group on December 31, 2003, after taxes.
2003 2003 2002
In millions
Reconciliation of Group Operating profit to Income (loss)
before financial income
US $ €€
7,16 3
(1,096)
24
(106)
(1,299)
(388)
4,298
5,686
(870)
19
(84)
(1,031)
(308)
3,412
6,854
257
(497)
(153)
(2,640)
(102)
3,719
Operating profit
Pension and postretirement benefit
(expenses) income, other than
current and prior service costs and
settlement/curtailment losses
Operating (profit) loss from affiliated
and associated companies and
financial (income) loss from related
operating companies
Operating profit from discontinued
operations
Pre-tax gains from the sale of
operating businesses and discontinued
operations
Miscellaneous items
Income (loss) before financial income
2003 2003 2002