Revenue and EBIT
In the yea
B.10 Revenue by segment and region
|In millions of euros||% change|
|thereof United States||45,422||41,152||+10|
The development of revenue was positively affected primarily by stronger pricing for new vehicles at Daimler Trucks and growth in contract volume at Daimler Mobility.
The Daimler Group therefore met the forecast made at the beginning of the year. The Mercedes-Benz Cars division achieved revenue at the prior-year level; at the beginning of the year, we had anticipated a slight increase in revenue. Revenue at Daimler Trucks was slightly above the prior-year level; we had forecasted a significant increase. The Mercedes-Benz Vans division had forecasted significant revenue growth fo
The Daimler Group achieved EBIT of €4.3 billion i
B.12 EBIT by segment
|In millions of euros||% change|
1 EBIT, the indicator of operating performance, comprises earnings before interest income/expense and corporate income taxes. The reconciliation of the Daimler Group’s EBIT to earnings before in-come taxes is included in Note 34 of the Notes to the Consolidated Financial Statements.
The Mercedes-Benz Cars and Mercedes-Benz Vans divisions posted earnings significantly below the prior-year figures. This mainly resulted from a reassessment of risks relating to ongoing governmental and legal proceedings and measures taken with regard to Mercedes-Benz diesel vehicles in various regions and markets, as well as from an updated risk assessment for an expanded recall of vehicles with Takata airbags. Earnings at the Mercedes-Benz Vans division were also reduced by expenses arising from the review and prioritization of the product portfolio, in connection with the planned discontinuation of production of the X-Class in Ma
The reconciliation of segment earnings to Group EBIT resulted in a higher expense than in the previous year.
In the Management Report fo
The revenue of the Mercedes-Benz Cars division in the yea
The Daimler Trucks division increased its revenue in the yea
In particular, higher unit sales in the NAFTA region and positive exchange-rate effects boosted EBIT. Further positive effects resulted from better pricing across all brands. Lower volumes, especially in the EU30 region and Asia, adversely affected earnings. Additional negative effects resulted from the adjustment of used-vehicle valuation. EBIT was also reduced by higher expenditures for new technologies as well as by costs in connection with capacity adjustments.
Due to higher unit sales and a more favorable model mix, the Mercedes-Benz Vans division’s revenue increased in the yea
EBIT was affected by a reassessment of risks relating to ongoing governmental and legal proceedings and measures taken with regard to Mercedes-Benz diesel vehicles in various regions and markets (€2,200 million). EBIT was also reduced by expenses in connection with the review and prioritization of the product portfolio (€828 million) and an updated risk assessment for an expanded recall of vehicles with Takata airbags (€341 million). Furthermore, exchange-rate effects adversely affected EBIT. On the other hand, EBIT was positively affected by higher unit sales and a more favorable model mix.
Due to the positive development of unit sales, the revenue of the Daimler Buses division increased by
EBIT was positively affected by strong growth in unit sales in Brazil as well as by exchange-rate effects. Negative effects on earnings resulted in particular from the lower capitalization of development costs.
Daimler Mobility achieved EBIT of €2,140 million i
Earnings increased by €718 million due to the merger of the mobility services of Daimler Group and BMW Group in the yea
The reconciliation of the divisions’ EBIT to Group EBIT comprises gains and/or losses at the corporate level and the effects on earnings of eliminating intra-Group transactions between the divisions.
Items at the corporate level resulted in expenses of €808 million (2018: €757 million). In the yea
The elimination of intra-Group transactions resulted in an expense of €23 million i
The reconciliation of Group EBIT to profit before income taxes is shown in table B.16.
B.16 Reconciliation of Group EBIT to profit before income taxes
|In millions of euros|
|Amortization of capitalized borrowing costs¹||-16||-15|
|Profit before income taxes||3,830||10,595|
1 Amortization of capitalized borrowing costs is not included in the internal performance measure EBIT, but is a component of cost of sales.
Change in the internal management and reporting structure as of January 1, 2020
As of January 1, 2020, changes have taken place in connection with the internal management and reporting structure and thus with the reportable segments. The Group’s activities are now divided into the segments Mercedes-Benz Cars, Mercedes-Benz Vans, Daimler Trucks & Buses and Daimler Mobility. The Mercedes-Benz Cars and Mercedes-Benz Vans segments are combined for external reporting purposes into the reportable segment Mercedes-Benz Cars & Vans, in line with the type of products and services offered as well as the brands, distribution channels and customer profiles.
In addition, as explained in the Corporate Profile section in the chapter on financial performance measures, we now report adjusted EBIT in addition to EBIT for the Daimler Group and for the segments from the yea
Table B.17 shows the reconciliation from EBIT as booked to adjusted EBIT for both the Daimler Group and the segments for the financial yea
B.17 Reconciliation EBIT to adjusted EBIT
|Mercedes-Benz Vans||Daimler Buses||Daimler |
|Recon- ciliation||Daimler Group|
|In millions of euros|
|Legal proceedings (and related measures) as well as Takata||2,482||–||2,541||–||–||425||5,448|
|Adjusted return on sales/return on equity (in %)1||6.2||6.1||1.9||6.0||13.1|
1 Adjusted return on sales is the ratio of adjusted EBIT to sales. Adjusted return on equity is the ratio of adjusted EBIT to average equity on a quarterly basis.
The adjustments in connection with legal proceedings comprise expenses from the reassessment of risks relating to ongoing governmental and legal proceedings and measures taken with regard to Mercedes-Benz Cars diesel vehicles in various regions and markets, as well as expenses in connection with the updated risk assessment for an extended recall of Takata airbags. The material adjustments in connection with restructuring measures comprise expenses from the realignment of the YOUR NOW group and expenses in connection with the review and prioritization of the product portfolio. The effects in connection with M&A transactions comprise income from the merger of the mobility services of Daimler Group and BMW Group.