Mercedes 2015 Annual Report Download - page 79

86 B | COMBINED MANAGEMENT REPORT | PROFITABILITY
The Mercedes-Benz Cars, Daimler Trucks and Mercedes-Benz
Vans divisions significantly increased their EBIT from the
on going business in 2015 and thus met the forecasts made
in Annual Report 2014. Daimler Buses also fulfilled our expec-
tations with EBIT just under the prior-year level. The earnings
of Daimler Financial Services developed better than we had
forecasted at the beginning of the year. We had anticipated
a slight improvement at Daimler Financial Services compared
with the previous year. We adjusted those assessments upwards
as the year progressed in the context of our quarterly reporting,
as the division’s contract volume increased faster than expected.
Mercedes-Benz Cars posted EBIT of €7,926 million, which is
significantly higher than the prior-year figure of €5,853 million.
The division’s return on sales increased to 9.5% (2014: 8.0%).

B.15
This very positive development primarily reflects the in-creased
unit sales of new vehicles. The main drivers were the new
C-Class, the compact cars and increased unit sales in the SUV
segment. Other positive effects on EBIT resulted from the
better pricing, efficiency measures and currency translation.
Negative effects resulted from expenses for the expansion of
production capacities and advance expenditure for new techno-
logies and vehicles. EBIT also includes expenses of €300 mil -
lion from a recall in connection with Takata airbags as well as
expenses for public-sector levies from prior periods of €121
million and expenses for the relocation of the Mercedes-Benz
USA, LLC headquarters caused expenses of €19 million. On
the other hand, EBIT includes a gain of €87 million on the sale
of real estate in the United States. EBIT in the previous year
included impairments of investments in the field of alternative
drive systems of €30 million.
The automotive divisions were also affected by a total expense
of €144 million from the restructuring of Daimler’s own dealer-
ship network (2014: €116 million). In this context, we refer to
the information provided in Note 5 of the Notes to the Con-
solidated Financial Statements.
Daimler Trucks achieved EBIT of €2,576 million (2014: €1,878
million), which is significantly higher than the prior-year figure.
The division’s return on sales increased to 6.9% (2014: 5.8%).

B.15
The positive development of earnings was primarily the result
of increased unit sales in the NAFTA region and Europe, the
realization of further efficiency improvements and positive
exchange-rate effects. There were negative impacts on earn-
ings from lower unit sales in Latin America and Indonesia, as
well as from higher expenses for warranties and customer
goodwill, the expansion of production capacities and advance
expenditure for new technologies and vehicles. EBIT also
includes expenses of €58 million for workforce actions in the
context of the ongoing optimization programs in Brazil and
Germany. Furthermore, the sale of Atlantis Foundries (Pty.) Ltd.
resulted in expenses of €61 million. The prior-year earnings
were reduced by expenses from the impairment of the equity-
method carrying value of the investment in Kamaz PAO.
Special items affecting EBIT
2015 2014
In millions of euros
Mercedes-Benz Cars
Recall in connection with Takata airbags -300 –
Sale of real estate in the United States +87 –
Public-sector levies related to prior periods -121 –
Restructuring of own dealer network -64 -81
Relocation of MBUSA Headquarters -19 –
Impairment of investments in the area
of alternative drive systems
–
-30
Daimler Trucks
Sale of investment in Atlantis Foundries -61 –
Workforce adjustments -58 -149
Restructuring of own dealer network -47 -16
Impairment of investment in Kamaz –-30
Mercedes-Benz Vans
Recall in connection with Takata airbags -40 –
Restructuring of own dealer network -29 -17
Relocation of MBUSA Headquarters -3 –
Reversal of impairment of
investment in FBAC
–
+61
Daimler Buses
Sale of investment in New MCI Holdings Inc. +16 –
Restructuring of own dealer network -4 -2
Business repositioning –-12
Reconciliation
Sale of shares in RRPSH –+1,006
Measurement of put option for RRPSH –-118
Remeasurement of Tesla shares –+718
Sale of Tesla shares and hedge
of Tesla share price
–
-124
Expenses related to EU antitrust proceedings –-600
B.14
Development of earnings
In billions of euros EBIT
Net profit (los
s)
B.13
10
12
14
8
6
4
2
0
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