Mercedes 2010 Annual Report Download - page 78

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On the other hand, the programs for the repositioning of Daimler
Trucks North America and Mitsubishi Fuso Truck and Bus Corpo-
ration resulted in expenses of €40 million in 2010 (2009: €340
million). The decision to restructure the business operations
of Daimler Financial Services AG and Mercedes-Benz Bank AG
in Germany by the end of 2012 led to expenses of €82 million
in 2010, primarily related to personnel adjustments. In connec-
tion with the now-completed sale of non-automotive assets,
Daimler Financial Services also incurred expenses of €9 million
in 2010 (2009: €100 million).
Group EBIT was also reduced by €261 million representing our
share of the loss incurred by EADS; our investment in that com-
pany is accounted for using the equity method. Our proportionate
share of the loss of EADS was primarily affected by expenses
relating to the A400M military transport aircraft (€237 million).
Due to the very good development of earnings in 2010 and in
view of the 125th anniversary of the invention of the automobile
in 2011, the Board of Management decided in December to pay
out a special bonus in a volume of approximately €125 million
to all persons employed by the Group, the individual amounts
depend ing on each employee’s period of service. It was also
decided to increase the capital of the Daimler and Benz Founda -
tion from €37 million to €125 million. These expenses as well
as additional expenses in connection with legal proceedings in
2010 are not allocated to the divisions, but are shown in the
reconciliation of the divisions’ EBIT to Group EBIT under corpo-
rate items.
Group EBIT in the prior year included Chrysler-related charges
of €294 million.
EBIT
Daimler achieved EBIT of €7.3 billion in 2010 and thus con-
cluded the financial year very successfully (2009: minus €1.5 bil-
lion).
EBIT by segment
2010 2009 10/09
In millions of euros % change
Mercedes-Benz Cars 4,656 -500 .
Daimler Trucks 1,323 -1,001 .
Mercedes-Benz Vans 451 26 .
Daimler Buses 215 183 +17
Daimler Financial Services 831 9.
Reconciliation -202 -230 -12
Daimler Group 7,274 -1,513 .
After the prior year had been severely impacted by the financial
and economic crisis, earnings in all divisions developed much
more positively than had been anticipated at the beginning of 2010.
This was due not only to the general market recovery, but in par-
ticular to our attractive product range and the efficiency gains we
realized. There was an opposing effect on EBIT from increased
research and development costs.
EBIT was positively affected also by lower expenses for the com-
pounding of non-current provisions (2010: €240 million; 2009:
€1,003 million) and by a significantly lower annual contribution
to the German Pension Protection Association (2010: expense
of €23 million; 2009: expense of €164 million).
The adjustment of health-care and pension benefit plans at our
US subsidiary, Daimler Trucks North America, resulted in non-
recurring income of €160 million in 2010. The sale of our 5.3%
equity interest in Tata Motors and the positive outcome of a legal
dispute involving Daimler AG in October 2010 led to additional
non-recurring income in a total amount of €483 million.
Profitability