Annual Report 2009 in PDF - GKN

3 Operating profit
The analysis of the components of operating profit is shown below:
(a) Trading profit
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2009 2008
£m £m
Sales by subsidiaries 4,223 4,376
Ñ
Operating costs and other income
Change in stocks of finished goods and work in progress (82) 18
Raw materials and consumables (1,756) (1,737)
Staff costs (note 10)
Reorganisation costs (i):
(1,224) (1,232)
Redundancy and other amounts (3) (5)
Impairment of plant and equipment Ñ (1)
Depreciation of property, plant and equipment (ii) (193) (165)
Impairment of plant and equipment (2)
Amortisation of intangible assets
Operating lease rentals payable:
(11) (10)
Plant and equipment (13) (12)
Property (29) (23)
Impairment of trade receivables (4) (6)
Amortisation of government grants 1 2
Net exchange differences on foreign currency transactions 7 3
Other costs (785) (1,007)
(4,094) (4,175)
Trading profit 129 201
(i) Reorganisation costs shown above reflect ongoing actions in the ordinary course of business to reduce costs, improve productivity and
rationalise facilities in continuing operations.
(ii) Including depreciation charged on assets held under finance leases of £1 million (2008 Ð £1 million).
(iii) Research and development expenditure in subsidiaries was £83 million (2008 Ð £90 million).
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