Annual Report 2003 2004

the balance sheet total by €204 million. Income tax liabilities remained
nearly constant whereas deferred income tax liabilities increased. The
balance sheet total increased by €940 million.
Fixed assets decreased by €363 million or 2.3%, to €15,181 million.
Taking into account the negative currency effects of €174 million,
fixed assets adjusted by these effects declined by only €189 million,
thus remaining nearly constant. Additions of €1,609 million exceeded
depreciation of €1,516 million by €93 million. Disposals amounted to
€345 million. Changes in the scope of consolidation, i.e. acquisition and
divestitures of companies, increased the fixed assets by €63 million.
Major individual transactions consisted of the acquisition of the Korean
elevator companies Dongyang Group and a 60 % interest in the
automotive sub-supplier Mercedes Benz Lenkungen (MB Lenk),
resulting in a total increase of €245 million. The divestitures of major
individual transactions led to a decline of €237 million.
Inventories climbed by €505 million to €6,340 million.
million €
Steel
Automotive
Elevator
Technologies
Services
Real Estate
Total
Sept. 30, 2003
2,750
Change
The increase in the Steel segment resulted primarily from the rise
of raw material prices. Technologies was impacted by the disposal of
activities by €48 million. Services posted an increase in inventories
due to business expansion and rising raw materials prices, which
was partially offset by the disposal of the business unit Information
Services.
The trade accounts receivable as of September 30, 2004 were up
by €467 million compared to September 30, 2003. It should be noted
that the amount of sold receivables as of September 30, 2004 increased
compared to the previous year by €136 million. The increase in the
Steel segment was largely attributable to the improving economic
situation as well as to the increase of raw material prices. The
609
249
1,036
1,114
77
5,835
Sept. 30, 2004
3,037
667
287
995
1,277
77
6,340
287
58
38
(41)
163
0
505
117
Financial report
Management’s discussion and analysis
Automotive segment business expansion also led to an increase of
trade accounts receivable. The acquisition of Dongyang led to an
increase in the Elevator segment of €89 million. Contrary effects
resulted from currency differences and the disposal of various activities
in the Technologies and Services segments.
million €
Steel
Automotive
Elevator
Technologies
Services
Real Estate
Corporate/Consolidation
Total
Sept. 30, 2003
1,226
Change
Deferred income tax assets declined by €133 million, whereas
deferred income tax liabilities increased by €213 million. The increase
resulted primarily from the change in inventory valuation method to
the weighted average method.
Stockholders’ equity climbed by €656 million, to €8,327 million.
The primary reason for this rise was the positive operating result of
the fiscal year 2003/2004. Additionally the increase in accumulated
other comprehensive income, resulting from the decrease in additional
minimum liabilities associated with accrued pensions and similar
obligations, increased equity by €52 million. Dividend payment for
fiscal 2002/2003 and currency differences reduced equity by €249
million and €78 million.
Accrued pensions and similar obligations in the reporting period
declined by €180 million to €7,221 million. Taking into account a
currency effect of €(45) million, accrued pensions and similar
obligations dropped by €135 million. This decrease resulted from
the slight increase of the discount rate in all relevant currency zones
(Euro, us dollar and GBP) as well as largely from the higher market
value of plan assets of the funded pensions plans in the usa, Canada
and uk as of the measurement date of June 30. Both factors led to
reduced minimum liabilities, adjusted by currency effects, of €(83)
million.
905
697
902
1,570
25
37
5,362
Sept. 30, 2004
1,531
1,076
725
845
1,604
18
30
5,829
305
171
28
(57)
34
(7)
(7)
467