Automobile manufacturer Daimler AG adjusted its revenue and its earnings before interest and taxes for 2017 due to the introduction of International Financial Reporting Standards 9 and 15.
The company said adoption of IFRS 15 impacts revenue and earnings before interest and taxes, or EBIT, due to earlier recognition of sales incentives and certain repurchase agreements and different accounting of contract manufacturing. IFRS 9 affects recognition and measurement of financial instruments.
Daimler's revenue for 2017 was revised down to €164.15 billion from €164.33 billion and EBIT was revised lower to €14.35 billion from €14.68 billion. The company's net profit was revised down to €10.62 billion from €10.86 billion.
Revenue of the Mercedes-Benz Cars division was changed to €94.35 billion from €94.70 billion. The division's EBIT was revised lower to €8.84 billion from €9.21 billion. Daimler Buses division revenue was revised upward to €4.52 billion from €4.35 billion, and the division's EBIT was revised upward to €281 million from €243 million.
Daimler said adjustments to prior-year figures will impact the outlook for 2018. It expects EBIT for each of Mercedes-Benz Cars and Daimler Buses divisions to be "slightly above" the prior-year level. The outlook for other divisions' earnings remains unchanged.
