EBIT in “other”
Corporate costs in the quarter were in line with the previous year. For the full year, these costs were higher due to increased information management and integrated supply chain costs as a consequence of functional excellence initiatives and one-off costs.
|
4th quarter |
|
January - December | ||||||
|
2011 |
2012 |
in € millions |
2011 |
2012 | ||||
|
(29) |
(31) |
Corporate costs |
(98) |
(113) | ||||
|
(3) |
(1) |
Pensions |
(14) |
(4) | ||||
|
(9) |
(1) |
Insurances |
1 |
(6) | ||||
|
(20) |
(16) |
Other |
(65) |
(71) | ||||
|
(61) |
(49) |
EBIT in “other” |
(176) |
(194) | ||||
Net financing expenses
Net financing charges for the year decreased by €69 million from €336 million to €267 million. Significant variances were:
- Financing expenses on net debt decreased by €63 million to €239 million (2011: €302 million) following the buy-back of bonds in December 2011, which had a one-off impact in 2011 of €67 million.
- Interest on provisions decreased by €17 million to €29 million (2011: €46 million) due to higher discount rates.
- Financing expenses related to pensions increased by €8 million to €65 million (2011: €57 million) due to a lower expected return on assets.
- Other items decreased by €5 million to €7 million (2011: €12 million), mainly explained by lower interest on discounted long-term receivables (€3 million).
Operating income to net income
|
4th quarter |
|
January - December | ||||||
|
2011 |
2012 |
in € millions |
2011 |
2012 | ||||
|
107 |
7 |
Operating income |
1,145 |
(1,244) | ||||
|
(141) |
(54) |
Net financing expenses |
(336) |
(267) | ||||
|
– |
(1) |
Results from associates and joint ventures |
24 |
13 | ||||
|
(34) |
(48) |
Profit/(loss) before tax |
833 |
(1,498) | ||||
|
25 |
29 |
Income tax |
(233) |
(172) | ||||
|
(9) |
(19) |
Profit/(loss) for the period from continuing operations |
600 |
(1,670) | ||||
|
(52) |
(22) |
Profit/(loss) for the period from discontinued operations |
(59) |
(436) | ||||
|
(61) |
(41) |
Profit/(loss) for the period |
541 |
(2,106) | ||||
|
(7) |
(18) |
Non-controlling interests |
(64) |
(63) | ||||
|
(68) |
(59) |
Net income |
477 |
(2,169) | ||||
Tax
Excluding the non-tax-deductible goodwill impairment charge of €2,106 million, the year-to-date tax rate was 30 percent (2011: 27 percent). The tax rate was negatively impacted by several adjustments to previous years and by other non-taxable items. The Q4 tax charge is impacted positively by several adjustments to previous years. The loss carry-forward recognized in the balance sheet and its usage in the coming years has a decreasing impact on the cash tax rate in coming years.