The profitability of
B.37 Condensed income statement of Daimler AG
|In millions of euros|
|Cost of sales (including R&D expenditure)||-1,959||-103,232|
|General adminstrative expenses||-964||-2,304|
|Other operating expense||-272||-292|
|Net loss (2018: net profit)||-1,678||5,022|
|Transfer from (2018: transfer to) retained earnings||2,641||-1,545|
Cost of sales comprises the services provided to Group companies to generate sales revenue and, due to the new management holding-company function, decreased to €2.0 billion (2018: €103.2 billion).
Due to the new corporate structure of
General administrative expenses amounted to €1.0 billion (2018: €2.3 billion). They include costs in connection with “Project Future” amounting to €0.2 billion. The decrease in general administrative expenses is caused by the hive-down.
Other operating expense amounted to €0.3 billion (2018: €0.3 billion) and primarily comprises expenses of €0.2 billion from increases in provisions for Group-external derivatives of the vehicle business.
Financial income fell by €7.9 billion to a financial expense of €0.5 billion, primarily due to a decrease of €11.8 billion in income from investments in subsidiaries and associated companies. This was mainly the result of expenses from the reassessment of risks in connection with ongoing governmental and legal proceedings and measures relating to Mercedes-Benz diesel vehicles in various regions and markets, as well as expenses in connection with an updated risk assessment for an expanded recall of Takata-Airbags, which led to a loss transfer from the affected company. On the other hand, interest expense decreased by €4.2 billion, primarily in connection with company pensions (€3.8 billion). This positive effect was mainly the result of lower expenses from the change in the discount rate and the compounding of the retirement benefit obligation due to the transfer of pension obligations to Mercedes-Benz AG and Daimler Truck AG, as well as the increased return on the special-purpose assets compared wit
The income tax expense amounted to €0.0 billion (2018: €1.1 billion). The decrease is due to the tax-loss situation of the corporate group for tax purposes.
Net loss amounts to €1.7 billion (2018: net profit of €5.0 billion). This result is thus significantly below the expectation stated in the Outlook chapter of Annual Repor
The economic situation of