2009 1st Half Report - Indesit

Half-year report at 30 June 2009
8.5. Operating profit
Operating profit is analysed below by type of cost.
(million Euro)
30 June 2009 30 June 2008
Revenue 1.203,7 1.525,3
Change in the inventories of finished products 0,9 133,7
Purchase of raw materials, components, materials and change in inventories (660,2) (981,2)
Services (222,4) (283,3)
Payroll costs (202,1) (247,9)
Depreciation and amortisation (67,7) (64,4)
Other income and expenses (37,0) (9,8)
Operating profit 15,4 72,4
In order to improve the presentation of the financial statements, the visible fees recovered
(recharge of waste equipment disposal costs) are now deducted from the corresponding
charges classified as part of the cost of services. The comparative data at 30 June 2008 has
also been reclassified.
The number of employees at 30 June 2009 is 16,805 (17,483).
In addition to the factors discussed above, the increase in other costs and revenues was due
to the recognition of higher restructuring charges in relation to the reorganisation of
production by the Group.
This caption also includes non-recurring income deriving from the relief of social security
contributions and taxes for the areas affected by the 1997 earthquake.
As required by Consob Communication DEM/6064293 dated 28 July 2006, non-operating
income and expenses are detailed in the following table. They mainly comprise restructuring
charges.
(million Euro)
Cost of
Sales
Selling and
distribution
expenses
General and
administrative
expenses
30 June 2009
Non recurring restructuring charges (36,3) (4,1) (0,8) (41,1)
Other non-recurring items 4,8 0,8 0,8 6,3
Total (31,3) (3,3) (0,0) (34,8)
The restructuring charges relate to the above-mentioned reorganisations and, in particular, to
the closure of the Kinmel Park factory in the UK and the reorganisation of production at the
None factory in Italy. The other net non-recurring income and charges mainly reflect the
accounting recognition of relief from taxes and contributions for the areas affected by the
1997 earthquake (Law 103/2008) and certain penalties incurred.
Non-recurring charges have an immediate cash flow effect, except for restructuring costs
whose cash flow effect is spread over a number of years consistent with the reorganisation
plans concerned. Total payables and provisions for non-recurring transactions at 30 June
2009 amount to 32.5 million euro and the cash flows absorbed by them was 0.9 million euro.
8.6. Interest expense, interest income, exchange rate differences and other net
financial expenses
Net financial expenses are analysed at 30 June 2009 as follows:
36