Mercedes 2012 Annual Report Download - page 88

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3 | Management Report | Profitability
Mercedes-Benz Cars posted EBIT of €4,389 million, which is
lower than the prior-year result of €5,192 million. The division’s
return on sales was 7.1% (2011: 9.0%).
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3.14
In an economic environment that became increasingly difficult
during the year, unit sales developed well. We achieved high
growth rates in particular in the segments of compact cars and
SUVs. In regional terms, our business in the United States
developed very positively. Growth in earnings was also realized
by positive exchange-rate effects. There were negative effects
on earnings from a shift in the regional structure of unit sales and
the changed model mix. Furthermore, EBIT was reduced by
expenses for the enhancement of our products’ attractiveness,
capacity expansion and advance expenditure for new tech-
nologies and vehicles. This negative effect on earnings was only
partially offset by ongoing efficiency improvements. In addi-
tion, the compounding of non-current provisions and effects
from changes in interest rates led to higher expenses.
EBIT of €1,714 million reported by Daimler Trucks was lower
than in the prior year (2011: €1,876 million). The division’s
return on sales was 5.5% (2011: 6.5%).
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Earnings were boosted on the one hand by the positive devel-
opment of unit sales and revenue in the NAFTA region and Asia.
Lower warranty expenses and exchange-rate effects also made
a positive contribution. On the other hand, earnings were
reduced by the current product offensive and by lower demand
in Brazil and Western Europe. The decline in demand was
related to weaker economic developments and in Brazil addition-
ally to the introduction of new emission limits as of the begin-
ning of 2012. Expenses arose from the compounding of non-
current provisions and from the effects of interest-rate changes.
Earnings for the previous year include expenses of €70 million
due to the natural disaster in Japan and an impairment charge
on the investment in Kamaz (€32 million).
Mercedes-Benz Vans achieved EBIT of €541 million in 2012
(2011: €835 million). The division’s return on sales was 6.0%,
compared with 9.1% in the prior year.
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The decrease in earnings was partially related to lower levels
of unit sales, especially caused by the significantly weaker
market in Western Europe. Good product quality was reflected
by lower warranty costs. Exchange-rate effects also had a
positive impact on earnings. There was an opposing effect from
expenses of €64 million in connection with the impairment
of the Chinese joint venture Fujian Benz Automotive Corporation.
Earnings were additionally reduced by expenses connected
with the market launch of the Citan city van and the launch
of the new Sprinter in Argentina.
Special items affecting EBIT
2012 2011
In millions of euros
Daimler Trucks
Impairment of investment in Kamaz –-32
Natural disaster in Japan –-70
Mercedes-Benz Vans
Impairment of joint venture Fujian Benz
Automotive Corporation
-64
–
Daimler Buses
Business repositioning -155 –
Daimler Financial Services
Natural disaster in Japan –-10
Reconciliation
Impairment of investment in Renault –-110
Gain on the sale of EADS shares +709 –
3.13
Return on sales
In %
9
12
6
3
0
-3
-6
2009 2011
2010 2012
Mercedes-Benz
Cars Daimler
Trucks Mercedes-Benz
Vans Daimler
Buses
3.14
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