Mercedes 2010 Annual Report Download - page 79

Management Report | Profitability | 75
The special items affecting earnings in the years 2010 and 2009
are listed in the following table.
Special factors affecting EBIT
2010 2009
In millions of euros
Daimler Trucks
Adjustment of health-care and pension benefit
plans
160
-
Repositioning of Mitsubishi Fuso Truck and
Bus Corporation
-3
-245
Repositioning of Daimler Trucks North America -37 -95
Daimler Financial Services
Repositioning of business activities in
Germany -82
-
Sale of non-automotive assets -9 -100
Reconciliation
Gain on the sale of shares in Tata Motors 265 -
Income connected with the settlement of a
legal dispute 218
-
Anniversary bonus and allocation to Foundation -213 -
Losses relating to Chrysler --294
In billions of euros
Development of earnings
EBIT
Net profit (loss)
10
8
6
4
2
0
2006 2007 2008 20092010
-2
-4
The Mercedes-Benz-Cars division posted EBIT for 2010 of
€4,656 million, an improvement of €5.2 billion compared with
the prior-year result. The division’s return on sales was 8.7%
(2009: minus 1.2%).
This excellent result is mainly a reflection of the high volume
of unit sales (+17%), especially in the premium and luxury seg-
ments, following the decline in demand for cars in the previous
year. Above all in the United States and China, the Mercedes-
Benz Cars division was able to increase its unit sales significantly
because of its attractive product range. Other factors with
a positive impact on earnings were a favorable product mix,
improved pricing and increased efficiency. An additional positive
effect came from lower expenses from the compounding of non-
current provisions (2010: €140 million; 2009: €657 million).
Research and development costs were higher than in the prior
year.
The EBIT of €1,323 million reported by the Daimler Trucks
division was also a substantial improvement on the prior year
result of minus €1,001 million. The return on sales was 5.5%
(2009: minus 5.5%).
This earnings improvement is primarily due to the good develop-
ment of unit sales, after sales of commercial vehicles had been
depressed in the prior year by the sharp fall in demand for trans-
port services. With its attractive product range, the division was
able to increase its unit sales by 37% in 2010, with contributions
from all major markets. Earnings were positively affected in 2010
also by cost-reducing actions, in particular from the repositioning
of Daimler Trucks North America and Mitsubishi Fuso Truck and
Bus Corporation, although the implementation of those programs
still had a negative impact on earnings of €40 million in 2010
(2009: negative impact of €340 million). In addition, EBIT for 2010
includes expenses relating to the reassessment of long-term
warranty and service obligations as well as higher costs for research
and development. There was an opposing, positive effect from
income of €160 million recognized at Daimler Trucks North America
in connection with the adjustment of health-care and pension
benefit plans. Lower expenses from the compounding of non-cur-
rent provisions also had a positive impact (2010: €58 million;
2009: €241 million).