Mercedes 2001 Annual Report Download - page 66

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62 Analysis of the Financial Situation
Stockholders’ equity declined by 8% to €39.0
billion (2000: €42.4 billion). This decline was mainly
due to the dividend distribution for the 2000 financial
year (€2.4 billion) and the net loss of €0.7 billion. The
equity ratio, net of dividend distribution, fell by 1.8
percentage points to 18.3%. The equity ratio for the
industrial business was 25.7% (2000: 31.2%). The main
reason for this decline, aside from the net loss, was a
capital increase carried out at Financial Services, with
a corresponding reduction in equity in the industrial
business.
The Group’s accrued liabilities rose by €5.1 billion
to €41.6 billion. This increase was primarily the result
of higher provisions for warranty claims, additions to
accrued liabilities in connection with the turnaround
plan at Chrysler Group, and increased risk reserves at
the Freightliner, Sterling and Thomas Built Buses
business unit. In addition, accrued liabilities rose due
to currency effects by a total of €1.1 billion.
Trade liabilities and other liabilities decreased by
€0.5 billion to €24.4 billion. Adjusted for positive cur-
rency translation effects (€0.7 billion), the decrease was
mainly explained by the deconsolidation of Adtranz
(€0.8 billion) and the reduction of trade liabilities in the
Mercedes-Benz Passenger Cars & smart and Commer-
cial Vehicles divisions.
Statement of cash flows impacted by financial services
business. Cash provided by operating activities
remained substantially unchanged in 2001 at €15.9
billion (2000: €16.0 billion). This resulted from the
decrease in cash-effective operating result, which was
nearly offset by positive effect of change in working
capital.
The substantial decrease in cash used for investing
activities to €13.3 billion (2000: €32.7 billion) was
primarily impacted by the intentionally lower expansion
of the financial services business. For Financial Services,
cash used for investing activities declined by €12.6
billion to €7.5 billion (2000: €20.1 billion). This was
particularly due to a decrease of €7.6 billion in net
additions to receivables from financial services and a
€3.4 billion lower increase in equipment on operating
lease. The decrease in cash used for investing activities
in the industrial business was primarily a result from
the net dispositions of businesses in 2001 compared to
the net acquisitions of businesses in the previous year.
Due to the reduced growth of the leasing and sales
financing business, which is typically financed with
a high proportion of debt, cash provided by financing
activities decreased from €14.5 billion to €1.4 billion.
Cash and cash equivalents with an original matu-
rity of three months or less increased from €7.1 billion
to €11.4 billion in the reporting period. Total liquidity,
which also includes long-term investments and securi-
ties, increased from €12.5 billion to €14.5 billion.
Cash Flow
In billions of €
Cash provided by
operating activities
Cash used for
investing activities
Cash provided by
financing activities
20
15
10
5
-5
-10
-15
-20
-25
-30
1999
2000
2001