Mercedes 2001 Annual Report Download - page 62

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58 Analysis of the Financial Situation
Financial income at prior year’s level. Financial income
of €0.2 billion was comparable to the prior year. In
2001, financial income was impacted by one-time
effects totaling €0.7 billion. Investment income, which
primarily reflects the Group’s equity method invest-
ments in EADS and Mitsubishi Motors, improved
mainly due to the gain at EADS in connection with the
formation of Airbus SAS. This gain was partially offset
by the negative impact from the Group’s share of the
net loss at Mitsubishi Motors mainly resulting from
restructuring expenses recorded in 2001.
In addition, expenses of €0.1 billion resulted from
the effects of the depreciation of the Argentine peso
against the U.S. dollar due to the economic crisis in
Argentina.
The higher interest expense was mainly caused by
increased borrowing in the industrial business.
The effects on operating profit of the operative
investments were allocated to the respective segment
operating profits. In 2001, this resulted in a net positive
contribution to operating profit of €0.5 billion, of which
€0.7 billion was accounted for by the investments in
EADS and Mitsubishi Motors and negative contributions
of €0.2 billion by other investments.
Net income after adjustments to exclude one-time
effects. The 2001 net loss was €0.7 billion, compared
with net income of €7.9 billion in the prior year. The
Group reported a loss per share of €0.66 after earnings
per share of €7.87 in 2000.
The one-time charges and gains as described in
the preceding paragraphs with respect to operating
profit and financial income had a net negative effect of
€1.4 billion on the net loss in the year under review
(2000: €4.8 billion net positive effect). In addition, the
prior year was affected by a one-time charge from the
write-down of deferred tax assets in connection with
the tax reform in Germany and effects on earnings
from the first application of Statement of Financial
Accounting Standards (SFAS) No. 133 and Emerging
Issues Task Force (EITF) No. 99-20. In the prior year,
due to accounting regulations on the use of the pooling-
of-interest method, gains from the sales of businesses
were recorded as extraordinary items.
Net income adjusted for these one-time effects
decreased by €2.8 billion to €0.7 billion. Basic earnings
per share adjusted for these one-time effects amounted
to €0.73, compared with €3.47 in 2000.
Dividend of €1.00 per share. We propose to the Annual
Meeting on April 10, 2002, that for 2001 a dividend
of €1.00 per share be distributed. The amount to be
distributed is €1,003 million.