Mercedes 2009 Annual Report Download - page 78

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Mercedes-Benz Cars reported EBIT of minus €500 million for
the year 2009, compared with plus €2,117 million in 2008.
The division’s return on sales for the year 2009 was minus 1.2%
(2008: plus 4.4%).
The sharp fall in earnings was primarily due to the significant
weakening of demand for cars and the resulting drop in unit sales.
This development was only partially offset by the successful
launch of the new E-Class. Charges on earnings also resulted from
the continued intense competition and pricing pressure in auto-
mobile markets, from a less favorable model mix and from expen-
diture for the reduction of CO
2
emissions. Expenses of €79
million arose in connection with residual-value guarantees which
we gave in support of our dealers. In addition, we incurred an
expense of €87 million as a result of the changed form of coop-
eration with McLaren Group Ltd. in November 2009 (see also
Note 24 of the Notes to the Consolidated Financial Statements).
There were positive effects on earnings from the cost-reducing
actions we initiated at an early stage and the reassessment of
product related provisions. Cost reduction actions include the
adjustment of personnel expenses and the intensification of the
ongoing optimization and efficiency-enhancing program. Prior-
year earnings were reduced by charges of €465 million relating to
the reassessment of residual values of leased vehicles. However,
a gain of €84 million resulted in 2008 from the adjustment of a
pension benefit plan.
With EBIT of minus €1,001 million and a return on sales of minus
5.5%, the results posted by the Daimler Trucks division were
significantly below the strong prior-year performance (2008: EBIT
of plus €1,607 million and return on sales of plus 5.6%).
Lower unit sales of commercial vehicles caused by a sharp fall
in global demand for transport services had a substantial impact
on the development of earnings in 2009. An additional factor
was that charges of €245 million were recognized in connection
with the plan approved in May 2009 for the comprehensive
repositioning of the business operations of Mitsubishi Fuso Truck
and Bus Corporation. The actions initiated in the prior year for
the repositioning of Daimler Trucks North America reduced EBIT
by €95 million in 2009 (2008: €233 million). Positive effects
on earnings in 2009 resulted from the adjustment of personnel
expenses as well as further optimization and efficiency improve-
ments.
Special items affecting earnings in the past two years are shown
in the following table.
in billions of €
Development of earnings
EBIT
Net profit (loss)
10
8
6
4
2
0
2006
2005 2007 2008 2009
-2
-4
(245)
(95)
–
(100)
in millions of €
Special items affecting EBIT
(465)
84
–
(233)
29
–
449
130
(1,390)
(1,838)
(247)
–
–
20082009
–
–
–
(294)
–
Mercedes-Benz Cars
Reassessment of residual values
Adjustment of a pension benefit plan
Daimler Trucks
Repositioning of Mitsubishi Fuso Truck and Bus
Corporation
Repositioning of Daimler Trucks North America
Adjustment of a pension benefit plan
Daimler Financial Services
Sale of non-automotive assets
Reconciliation
Sale of real estate (Potsdamer Platz)
Gains relating to the sale of shares in EADS
Equity-method result Chrysler
Other losses relating to Chrysler
New management model