Mercedes 2009 Annual Report Download - page 85

Management Report |Profitability |81
in €
Dividend per share
2005
1.50
2006
1.50
2007
2.00
2008
0.60
2009
0.00
2.50
2.00
1.50
1.00
0.50
0
Other financial expense, net, improved from €2.2 billion in 2008
to €1.3 billion in 2009. This improvement primarily reflects the
fact that other financial expense in the prior year was increased by
€1.7 billion due to the impairment of loans and other Chrysler-
related assets. However, other financial expense in 2009 was in-
creased by €0.3 billion due to expenses relating to the agree-
ment concluded on Chrysler. Lower discount rates for discounting
non-current provisions additionally increased other financial
expense in 2009.
The Group recorded a negative net interest result of €0.8 billion
in 2009 (2008: positive net interest result of €0.1 billion). This
deterioration was mainly caused by maintaining higher gross liq-
uidity combined with higher financing liabilities. In 2009, the
level of interest on investments fell significantly, while refinancing
costs for funds raised were increased by the high risk premiums
on borrowing that were prevalent in the first several months of the
year. Furthermore, lower expected returns on pension plan assets
also reduced the net interest result.
In 2009, the Group recorded an income tax expense of €0.3
billion (2008: €1.1 billion). This was the result of impairments
that had to be recognized on deferred tax assets at non-German
subsidiaries and of additional tax expenses relating to the tax
assessment or estimation of prior years. The effective tax rate
was negative in 2009 at minus 15.1%. The effective tax rate
in 2008 was 39.0%, and was higher than the expected tax rate
because of impairments recognized on deferred tax assets
at non-German subsidiaries. An additional factor is that pre-tax
income in 2008 included losses related to our equity interest
in Chrysler, not all of which were tax deductible. For further infor-
mation on income taxes, please refer to Note 8 of the Notes
to the Consolidated Financial Statements.
Net loss from continuing operations and net loss amounted
to €2.6 billion in 2009 (2008: net profit from continuing opera-
tions of €1.7 billion and net profit of €1.4 billion). The decrease is
primarily a reflection of lower EBIT of minus €1.5 billion (2008:
plus €2.7 billion). Loss per share amounted to €2.63 (2008: earn-
ings per share of €1.71 and €1.41 respectively).
Dividend
In view of the Group’s net loss of €2.6 billion, the Board of Man-
agement and the Supervisory Board have decided to pay no
dividend for the year 2009. This is solely due to last year’s busi-
ness development and earnings situation and is not related
to our expectations for the year 2010. In the coming years, we
want our shareholders to participate in appropriate form in
Daimler’s profits once again.