Financial result down on the year


The financial result fell by EUR 75m to EUR –327m. The result from equity investments was down by EUR 32m due to the slump in the result of the equity valuation by EUR 66m to EUR –20m. This stemmed in particular from the equity investments in SN Airholding (EUR –38m) and Jade Cargo (EUR –38m).

Net interest improved by a total of EUR 58m to EUR –288m, thanks mainly to lower interest expense on pension provisions.

The result from other financial items fell sharply by EUR 101m to EUR –110m. Changes in the time value of options used for hedging (primarily fuel hedges) amounting to EUR –96m (previous year: EUR –18m) were recognised in the financial result in line with IAS 39. However, the expenses arising from changes in the time value of options must be viewed in connection with the hedging gains and losses realised and changes to the intrinsic value of hedging transactions, which are recognised directly in equity.

As a result, the positive result of hedging considerably alleviated fuel costs by EUR 694m in the financial year 2011. After the deduction of these maturing derivatives, the intrinsic value of the outstanding fuel hedges recognised in equity only declined by EUR 88m. In addition, income of EUR 23m (previous year: EUR 25m) came from changes in the value of hedging instruments considered under IAS 39 as held for trading.

Earnings before interest and tax (EBIT) came to EUR 734m. In the previous year EBIT amounted to EUR 1.5bn. It includes the profit from operating activities, the result from equity investments and other financial items. Adding depreciation and amortisation results in EBITDA of EUR 2.5bn (previous year: EUR 3.2bn).

EUR 289m profit from continuing operations

The total of profit from operating activities and financial result gave a profit before income taxes of EUR 446m (previous year: EUR 1.1bn). This was EUR 688m lower than the year before. Income taxes reduced the result by EUR 157m. In the previous year income taxes resulted in income of EUR 161m, despite the high pre-tax earnings of EUR 1.1bn. This was largely due to tax relief of around EUR 400m from the use of previously unrecognisable tax-loss carryforwards from the LSG Sky Chefs USA group in the course of the financial restructuring of the Catering segment, as well as from receivables waived in this context. After deducting income taxes, the profit from continuing operations came to EUR 289m (previous year: EUR 1.3bn).

Reconciliation of results

 

2011

2010

in €m

Income statement

Reconciliation with operating result

Income statement

Reconciliation with operating result

Total revenue

28,734

26,459

Changes in inventories

139

165

Other operating income

2,324

2,610

of which book gains and current financial investments

–61

–275

of which income from reversal of provisions

–163

–224

of which write-ups on capital assets

–6

–39

of which period-end valuation of non-current financial liabilities

–23

–52

Total operating income

31,197

–253

29,234

–590

 

 

 

 

 

Cost of materials and services

–16,731

–14,700

Staff costs

–6,678

–6,491

of which past service costs

24

19

Depreciation, amortisation and impairment

–1,722

–1,654

of which impairment losses

59

68

Other operating expenses

–5,293

–5,003

of which impairment losses on assets held for sale – non-operating

 

21

16

of which expenses incurred from book losses and current financial investments

87

47

of which period-end valuation of non-current financial liabilities

109

74

Total operating expenses

–30,424

300

–27,848

224

 

 

 

 

 

Profit / loss from operating activities

773

1,386

Total from reconciliation with operating result

47

–366

Operating result

820

1,020

 

 

 

 

 

Result from equity investments

71

103

Other financial items

–110

–9

EBIT

734

1,480

 

 

 

 

 

Write-downs (included in profit from operating activities)

1,722

1,654

Write-downs on financial investments (incl. at equity)

90

32

EBITDA

2,546

3,166