Mercedes 2006 Annual Report Download - page 66

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Statements of income The DaimlerChrysler Group’s revenues increased by 1% to
€151.6 billion in 2006.
In 2006, cost of sales of €125.7 billion was 2% higher than in
the prior year, and thus increased at a slightly higher rate than
revenues. Gross margin therefore decreased to 17.1% from
18.0%. This decrease is primarily due to the disproportionately
lower reduction in cost of sales at the Chrysler Group. In both
years, cost of sales includes expenses incurred in connection with
the restructuring of smart (2006: €0.7 billion; 2005: €0.8 billion)
and with the personnel reductions at the Mercedes Car Group
(2006: €0.2 billion; 2005: €0.5 billion).
Selling expenses decreased by 3% to €11.6 billion. Among
other factors, this was caused by lower advertising expenditure
at the Chrysler Group, currency effects and the deconsolida-
tion of the off-highway business. In both years, selling expenses
include expenses incurred in connection with the restructuring
of smart (2006: €0.2 billion; 2005: €0.1 billion). The personnel
reductions at the Mercedes Car Group had only a slight impact
on selling expenses in 2006, compared with a charge of €0.1 billion
in 2005. Expressed as a proportion of revenues, selling expens-
es decreased from 8.0% to 7.7%.
General administrative expenses increased by 1% to €6.2
billion. The increase was primarily caused by expenses related to
the personnel reductions in administrative areas (€0.3 billion).
As a proportion of revenues, general administrative expenses were
unchanged compared with the prior year at 4.1%.
Other operating expenses decreased to €0.7 billion
(2005: €0.9 billion). In the prior year, other operating expenses of
€0.2 billion were incurred in connection with the restructuring
of smart.
Amounts in millions of € % change
Consolidated statements of income
+1
+2
-4
-2
-6
+35
.
+5
+184
+16
+38
-24
+13
-20
+13
149,776
(122,861)
26,915
(18,981)
(5,649)
966
(30)
3,221
217
3,438
(513)
(74)
2,851
(5)
2,846
151,589
(125,673)
25,916
(18,513)
(5,331)
1,305
-
3,377
616
3,993
(706)
(56)
3,231
(4)
3,227
2006 2005
Revenues
Cost of sales
Gross profit
Selling, administrative and other
expenses
Research and development
Other income
Goodwill impairment
Income before financial income
Financial income (expense), net
Income before income taxes
Income tax expense
Minority interests
Income before cumulative effects
of changes in accounting principles
Cumulative effects of changes in
accounting principles: transition
adjustments resulting from adoption
of SFAS123R and FIN 47, net of taxes
Net income
06/05