Mercedes 2010 Annual Report Download - page 80

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In the year 2010, Mercedes-Benz Vans also achieved significant
earnings growth with EBIT of €451 million (2009: €26 million).
The division’s return on sales developed accordingly, improving
from 0.4% to 5.8%.
The positive earnings trend resulted primarily from the increase
in unit sales (+35%), especially in Western Europe, the United
States and China, and also from better pricing. Charges from
exchange-rate effects were more than offset by sustained
efficiency improvements.
The Daimler Buses division increased its EBIT to €215 million
(2009: €183 million) and achieved a return on sales of 4.7%
(2009: 4.3%).
This earnings development mainly reflects the substantial
increase in deliveries of bus chassis in Latin America. There were
opposing effects from lower unit sales of complete buses in
Western Europe and North America.
Daimler Financial Services also improved its earnings
significantly in 2010 with EBIT of €831 million (2009: €9 million).
The division’s return on equity was 16.1% (2009: 0.2%).
The increase in earnings after crisis year 2009 was mainly
caused by lower expenses for risk provisions and higher interest
margins. There were opposing, negative effects in 2010 from
expenses of €82 million related to the repositioning of business
operations in Germany. An additional factor was that the division
disposed of non-automotive assets that were subject to leasing
agreements, resulting in an expense of €9 million (2009: expense
of €100 million).
The reconciliation of the divisions’ EBIT to Group EBIT reflects
our proportionate share of the results of our equity-method
investment in EADS, other corporate gains and losses, and the
effects on earnings of eliminating intra-group transactions
between the divisions.
Daimler’s proportionate share of the net loss of EADS amounted
to an expense of €261 million (2009: income of €88 million).
The sharp deterioration is mainly due to the additional provisions
recognized at EADS in its 2009 consolidated financial statements
in connection with the A400M military transport aircraft (minus
€237 million). Negative exchange-rate effects were also a factor.
The income of €30 million recognized at corporate level in 2010
(2009: expense of €486 million) primarily reflects a gain of
€265 million on the sale of Daimler’s 5.3% equity interest in Tata
Motors and pre-tax income of €218 million related to the positive
outcome of a legal dispute involving Daimler AG in October 2010.
It also includes expenses totaling €213 million for an anniversary
bonus and an increase in the capital of the Daimler and Benz Foun-
dation as well as additional expenses in connection with legal
proceedings in 2010. In the prior year, the items reported at corpo-
rate level included Chrysler-related expenses totaling €294 million,
partially resulting from the full disposal of Daimler’s remaining
19.9% equity interest in Chrysler.
The elimination of intra-group transactions resulted in income
of €29 million in 2010 (2009: income of €168 million).
In %
Return on sales
9
6
3
0
-3
-6
2007 2009
2008 2010
Mercedes-Benz
Cars
Daimler Trucks Mercedes-Benz
Vans
Daimler Buses
In %
Return on equity
25
20
15
10
5
0
2007
2008
2009
2010
Daimler Financial Services