Mercedes 2009 Annual Report Download - page 84

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The Daimler Group’s revenue decreased to €78.9 billion in 2009
(2008: €98.5 billion); adjusted for currency effects, the decrease
was 21%. Further information on the development of revenue
is provided in the “Business development” section of the Manage-
ment Report.
Cost of sales developed in line with revenue, falling by 15% to
€65.6 billion (2008: €76.9 billion). Due to the comparatively
stronger fall in revenue, the gross margin fell from 21.9% in 2008
to 16.9% in 2009. The measures taken by Daimler at an early
stage to increase efficiency and reduce costs, which include the
adjustment of personnel expenses, made a significant contribu-
tion towards adjusting cost of sales to the sharp drop in revenue.
Further information on cost of sales is provided in Note 4 of the
Notes to the Consolidated Financial Statements.
Selling expenses decreased from €9.2 billion to €7.6 billion in
2009, primarily due to the general business development. The
measures taken to reduce costs also had a positive impact. As a
percentage of revenue, selling expenses were 9.6% (2008: 9.3%).
General administrative expenses fell by 20% to €3.3 billion
(2008: €4.1 billion). This massive reduction was mainly the result
of strict cost management. As a percentage of revenue, general
administrative expenses were 4.2%, the same as in the prior year.
Research and non-capitalized development expenses amount-
ed to €2.9 billion in 2009 (2008: €3.1 billion), increasing to 3.7%
as a proportion of revenue (2008: 3.1%). The reduction in these
expenses partially reflects lower personnel and material expenses
as a result of cost-cutting actions. The Group’s total research and
development spending, including both capitalized and expensed
items, decreased by approximately €0.2 billion (2009: spending of
€4.2 billion; 2008: spending of €4.4 billion). Information on the
main areas of research and development spending is provided in
the “Research and development” section of the Management
Report.
The decline in other operating income to €0.7 billion (2008: €1.2
billion) reflects the gain of €0.4 billion realized in the prior year
on the sale of real estate properties at Potsdamer Platz. In 2009,
there was a positive effect on other operating income of €0.1
billion from the refund of social-insurance contributions from the
Federal Employment Agency, related to the short-time working
arrangements at the production plants in Germany.
Other operating expense of €0.5 billion was at the prior-year
level (2008: €0.5 billion).
Further information on the composition of other operating
income and expense is provided in Note 5 of the Notes to the
Consolidated Financial Statements.
In 2009, our share of profit (loss) from investments accounted
for using the equity method amounted to a net profit of €0.1
billion (2008: net loss of €1.0 billion). The improvement primarily
reflects the fact that there was a negative impact in 2008 from
a proportionate loss of €1.4 billion relating to Chrysler. Daimler’s
proportionate share in the net profit of EADS decreased to €0.1
billion in 2009 (2008: €0.2 billion).