EBIT in “other”
Corporate costs in the quarter were below the previous year. Additional costs for functional excellence activities were offset by cost savings. The result of our captive insurance companies was in line with the previous year. The year-to-date result is better than the previous year due to the lower number of claims. Other costs were lower due to cost savings and favorable non-recurring items.
|
3rd quarter |
|
January - September | ||
|
2010 |
2011 |
in € millions |
2010 |
2011 |
|
(25) |
(19) |
Corporate costs |
(68) |
(69) |
|
3 |
(4) |
Pensions |
5 |
(11) |
|
2 |
2 |
Insurances |
(2) |
10 |
|
(28) |
(20) |
Other |
(63) |
(43) |
|
(48) |
(41) |
EBIT in “other” |
(128) |
(113) |
Net financing expenses
Net financing charges remained unchanged compared to Q3 2010, amounting to €70 million. Significant items included are:
- Financing expenses on pensions which decreased by €11 million to €15 million (2010: €26 million) mainly due to lower discount rates
- Net interest on debt decreased by €2 million to €35 million (2010: €37 million) due to the close out of interest rate swaps
- Interest on provisions which increased by €7 million to €13 million (2010: €6 million) due to lower discount rates
- Other items which included an increase in costs of €5 million to €9 million (2010: €4 million) on foreign currency results of hedged future interest cash flows.
Tax
The Q3 tax rate is 31 percent (2010: 25 percent), impacted by changes in tax rates on the measurement of deferred tax and non-deductible cost. Excluding these and other one off factors, the tax rate would have been 29 percent. In 2010, the Q3 tax rate was low because of several adjustments to previous years and a tax-exempt gain related to the acquired powder coatings activities. The year-to-date tax rate is 29 percent (2010: 26 percent).