Annual Result

Additional special items in connection with the diesel issue amounting to €2.0 billion were recognized in fiscal year 2018. These were mainly attributable to the administrative fine order of €1.0 billion imposed by the Braunschweig public prosecutor’s office, higher legal risks and legal defense costs and an increase in expenses for technical measures. Special items had an impact of €0.1 (−2.0) billion on cost of sales and of €−2.0 (−0.9) billion on other operating income.

In the reporting period, sales were 1.7% higher than in the previous year, at €78.0 billion. Sales generated abroad accounted for a share of 64.7 (62.5)%. Due to a decline in special items, cost of sales decreased by 0.9% to €72.7 billion.

Gross profit rose accordingly to €5.3 (3.4) billion.

At €7.6 billion, distribution, general and administrative expenses were up €0.5 billion on the prior-year figure.

The net other operating result was €0.3 billion lower, at €−0.4 (−0.2) billion. The decline was mainly attributable to the year-on-year rise of €1.1 billion in special items.

At €8.3 (8.6) billion, the financial result stood at the prior-year level.

Including the income tax expense of €−0.9 (−0.4) billion, net income for the year amounted to €4.6 (4.4) billion in fiscal year 2018.