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Notes to the statement of income


EBIT in “other”

Corporate costs continued to be higher than last year as a consequence of specific functional excellence activities. The result of our captive insurance companies was positive due to the low number of claims. Other costs were lower than last year due to favorable non-recurring items.

2nd quarter

 

January - June

2010

2011

in € millions

2010

2011

(23)

(25)

Corporate costs

(43)

(50)

(5)

Pensions

2

(7)

(6)

5

Insurances

(4)

8

(13)

(8)

Other

(35)

(23)

(42)

(33)

EBIT in “other”

(80)

(72)

Tax

The Q2 tax rate is 27 percent (2010: 22 percent), benefitting from tax-exempt gains, the main one being a release of an anti-trust provision. Excluding this and other one-off factors, the tax rate would have been 29 percent. In 2010, the Q2 tax rate was low because of several adjustments in previous year, partly related to settlements with several tax authorities. The year-to-date tax rate is 29 percent (2010: 26 percent).

Net financing expenses

Net financing charges decreased by

€49 million to €64 million (2010: €113 million):

  • Financing expenses on pensions decreased by €13 million to €13 million (2010: €26 million) mainly due to higher returns on plan assets.
  • Net interest on debt decreased by €14 million to €46 million (2010: €60 million) due to higher cash balances, close out of interest rate swaps and a one-time adjustment to the interest classification versus last year.
  • Interest on provisions decreased by €17 million to €12 million (2010: €29 million) due to lower discount rates.
  • We incurred other interest benefits of €7 million due to foreign currency results on hedged future interest cash flows.

For further detail on financing expenses, please refer to the Quarterly statistics.

Copyright © 2011 Akzo Nobel N.V.