The development of profitability was affected in financial yea
B.34 Condensed income statement of
|In millions of euros|
|Cost of sales (including R&D expenditure)||-103,232||-101,874|
|General administrative expenses||-2,304||-2,010|
|Other operating expense, net||-292||-355|
|Transfer to retained earnings||-1,545||-1,077|
Unit sales by
At €112.5 billion, revenue remained at the prior-year level and in line with our expectations as stated in the Outlook section of last year’s Annual Report. Revenue in the car business decreased by
Cost of sales rose by
Selling expenses increased by €0.6 billion to €7.9 billion. This was primarily due to higher expenses for freight, marketing and sales systems. As a proportion of revenue, selling expenses increased from 6.
General administrative expenses of €2.3 billion were higher than in the previous year (2017: €2.0 billion). They include costs in connection with Project Future amounting to €0.2 billion. As a proportion of revenue, general administrative expenses amounted to 2.
The aforementioned functional costs include expenses in the amount of €0.6 billion in connection with the transfer of pension obligations and special-purpose assets to Daimler Pensionsfonds AG.
Other operating expense, net amounted to €0.3 billion (2017: €0.4 billion). Income from other periods increased, on the other hand, expenses for legal proceedings had an impact. (See table B.34)
Financial income increased by €1.4 billion to €7.3 billion. The increase is primarily due to an increase of €4.6 billion in income from investments in subsidiaries. On the other hand, financial income was adversely affected by an increase of €3.2 billion in interest expenses, primarily in connection with company pensions. This was mainly due to significant higher interest expenses as a result of the return on the special-purpose assets, which was negative, unlike in the previous year, and to expenses resulting from the proportionate transfer of pension obligations and special-purpose assets to Daimler Pensionsfonds AG. In addition, the measurement of pension obligations also contributed to higher interest expenses.
The income tax expense amounts to €1.1 billion (2017: €2.0 billion). The lower operating profit led to a lower income tax expense. Furthermore, the prior-year figure included high tax expenses from other periods.
Net profit amounts to €5.0 billion (2017: €5.0 billion), and was thus in line with the expectations stated in the Outlook section of last year’s Annual Report.
The economic situation of
1 Unit sales relate solely to new vehicles. The unit sales of