Mercedes 2013 Annual Report Download - page 83

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C | Combined Management Report | Profitability
The special items affecting earnings in the years 2013
and 2012 are listed in the table
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C.14 .
Group EBIT from the ongoing business (EBIT excluding
special items) of €7.9 billion was slightly lower than the level
of €8.1 billion that we had forecast in Annual Report 2012
as there were no more equity-method earnings from our invest-
ment in EADS as of the second quarter of 2013.
Mercedes-Benz Cars posted EBIT of €4,006 million,
which was lower than the prior-year result of €4,391 million.
The division’s return on sales was 6.2% (2012: 7.1%).
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The division’s earnings primarily reflect the further growth
in unit sales, especially in China, the United States and Western
Europe. This was due in particular to our expanded range of
compact cars. Better pricing also contributed to the earnings.
The efficiency actions from our “Fit for Leadership” program
also had a positive impact on earnings. However, a changed
model mix and unfavorable exchange rate developments
adversely affected earnings. Earnings were additionally reduced
by expenses related to enhancements of products’ attrac-
tiveness, capacity expansions, advance expenditure for new
technologies and vehicles as well as higher other expenses
relating to the growth in unit sales. EBIT includes an impairment
recognized on investments in the area of alternative drive
systems of €174 million (2012: €51 million).
The Daimler Trucks division achieved EBIT of €1,637 million
and a return on sales of 5.2% (2012: €1,695 million and 5.4%).
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The revival of unit sales that was apparent especially in the
last quarter made a positive contribution to the development
of earnings. On the one hand, there was a recovery of the
Brazilian market; on the other hand, there was positive impetus
from the business in Western Europe, partially due to pur-
chases being brought forward because of the introduction of
the stricter Euro VI emission standards in 2014. However,
earnings were particularly impacted by increased warranty costs
and exchange rate effects. An additional factor was a total
expense of €116 million for workforce adjustments in the context
of the optimization programs in Germany and Brazil. The effi-
ciency measures taken within the framework of the “Daimler
Trucks #1” program had a positive influence on earnings.
Mercedes-Benz Vans achieved EBIT of €631 million in 2013
(2012: €543 million). The division’s return on sales was 6.7%
in 2013 compared with 6.0% in 2012.
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The significant increase in earnings is partially related to
higher levels of unit sales and better pricing. Ongoing efficiency
increases in the context of the “Performance Vans 2013”
program also contributed to the improvement in earnings.
Earnings were negatively influenced by advance expenditure
for new products. In the previous year, an expense of €64 million
had been recognized in connection with the impairment of
the Chinese joint venture Fujian Benz Automotive Corporation.
Return on sales
In %
9
12
6
3
0
-3
-6
2010 2012
2011 2013
Mercedes-Benz
Cars Daimler
Trucks Mercedes-Benz
Vans Daimler
Buses
C.15
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Special items affecting EBIT
2013 2012
In millions of euros
Mercedes-Benz Cars
Impairment of investments in the area of
alternative drive systems
-174 -51
Daimler Trucks
Workforce adjustments -116 –
Mercedes-Benz Vans
Impairment of joint venture Fujian
Benz Automotive Corporation
-
-64
Daimler Buses
Business repositioning -39 -155
Reconciliation
Gain on the sale of EADS shares +3,223 +913
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Return on equity
In %
25
30
20
15
10
5
0
2010
2011
2012
2013
Daimler Financial Services
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