Change
Tools: Print this page Recommend this page

Notes to the statement of income


EBIT in “other”

Corporate costs are lower than last year as a result of cost saving programs. Other costs are higher than the previous year, mainly due to increased project activity in line with our strategy to drive functional excellence.

 

3RD QUARTER

 

IN € MILLIONS

JANUARY - SEPTEMBER

 

2010

2009

 

 

2010

2009

 

 

 

 

 

 

 

 

(25)

(32)

 

Corporate costs

(68)

(83)

 

3

7

 

Pensions

5

22

 

2

(4)

 

Insurances

(2)

 

(28)

(13)

 

Other

(63)

(37)

 

 

 

 

 

 

 

 

(48)

(42)

 

EBIT in "other"

(128)

(98)

Interest

Net financing charges decreased by €27 million to €70 million, due to:

  • Financing expenses on pensions which decreased by €16 million to €26 million (2009: €42 million) mainly due to higher returns on plan assets.
  • Lower other interest charges due to foreign currency results on hedged future interest cash flows.

Further detail on financing charges is provided in the table below.

Reconciliation net financing expense

 

3RD QUARTER

 

IN € MILLIONS

JANUARY - SEPTEMBER

 

2010

2009

 

 

2010

2009

 

 

 

 

 

 

 

 

16

19

 

Financing income

40

44

 

(72)

(70)

 

Financing expenses

(211)

(181)

 

(56)

(51)

 

Net interest on net debt

(171)

(137)

 

 

 

 

 

 

 

 

 

 

 

Other interest movements:

 

 

 

(26)

(42)

 

- Financing expenses related to pensions

(77)

(132)

 

(6)

(8)

 

- Interest on provisions

(43)

(26)

 

18

4

 

- Other items

20

8

 

(14)

(46)

 

Net other financing charges

(100)

(150)

 

 

 

 

 

 

 

 

(70)

(97)

 

Net financing expenses

(271)

(287)

Tax

The Q3 tax rate is 25 percent (2009: 13 percent). The tax rate is low because of several adjustments to previous years and a tax-exempt gain related to the acquired powder coatings activities. This is partly offset by the impact of changes in tax rates on the measurement of deferred tax. In 2009, the Q3 tax rate was low due to a tax receipt on a contingent basis as part of an ongoing tax litigation.

Copyright © 2010 Akzo Nobel N.V.