Annual Report 2005 - Walter Meier

8 Other operating income
Other operating income relates mainly to gains on the sale of Oertli Induflame AG
and property, plant and equipment.
Sale of Oertli Induflame AG
Oertli Induflame was sold on June 23, 2005, and is therefore no longer included
in the consolidation. The industrial burners business was of no further strategic
significance to WMH.
In 2004, Oertli Induflame AG generated net sales of CHF 10 million and finally
employed 25 people. After deduction of the associated costs, the sale resulted in a
positive net cash flow of CHF 1.5 million.
Details of the sale in CHF mil.
Selling price less selling costs 1.5
Assets at date of purchase 3.8
Liabilities at date of purchase 2.5 -1.3
Gain on sale 0.2
9 Financial income/expense, net
CHF mil. 2005 2004
Interest income 0.6 0.8
Value adjustment on loan -0.4 0.0
Interest expense -4.6 -5.8
Total financial income and expense, net -4.4 -5.0
10 Income expenses
Income tax expense includes all taxes accrued or paid by the consolidated companies
on the results of operations for the reporting year, and deferred taxes due to changes
in the revaluations made in the course of the consolidation.
CHF mil. 2005 2004
Current taxes on income from
normal business operations -7.4 -5.9
Deferred taxes on changes in revaluations 0.6 0.9
Total income taxes -6.8 -5.0
The tax rate applicable to the Group is 25% which represents the tax rate expected
to be applied to income of the individual WMH companies in the respective areas
of tax jurisdiction.
The table below shows how the Group tax rate and actual taxes are calculated
from the income taxes and Group taxes.
CHF mil. 2005 2004
Net income/loss before income taxes 28.1 -4.2
Income taxes based on expected
average income tax rate 7.0 -1.0
Effect of uncapitalized losses carried forward -0.3 6.8
Offset of uncapitalized losses carried forward -0.1 -0.7
Retroactive capitalization of losses carried forward
from earlier periods -0.3 -0.9
Taxes at other taxation rates 0.5 0.6
Other, individually immaterial changes 0.2
Total income taxes per income statement 6.8 5.0
11 Earnings per share
12
13
The earnings per share are calculated as follows:
WMH Financial Report 2005
2005 2004
-A- registered shares of CHF 25.00 nom. 1 570 800 1 770 800
Less: -A- reserved registered shares -200 000
Less: -A- registered shares in treasury
(average for year) -88 651 -108 362
Number of -A- registered shares relevant
for the calculation 1 482 149 1 462 438
-B- registered shares of CHF 5.00 nom. 3 300 000 3 300 000
Number of -B- registered shares relevant
for the calculation 3 300 000 3 300 000
Assignable income/loss (CHF mil.)
-A- registered shares 14.7 -6.3
-B- registered shares 6.6 -2.8
Income/loss available to shareholders of the
parent company 21.3 -9.1
Earnings per share (CHF)
-A- registered share 9.94 -4.29
-A- registered share (diluted) 9.94 -4.29
-B- registered share 1.99 -0.86
-B- registered share (diluted) 1.99 -0.86
12 Effects of currency translation and changes in Group
composition on the balance sheet
Deviations to prior year Current Long-term Liabilities
CHF mil. assets assets
Total deviation 1.6 4.3 -9.4
Change in scope of consolidation 2.6 0.1 2.1
Currency translation -18.5 -5.6 -10.9
Adjusted deviation -14.3 -1.2 -18.2
13 Trade accounts receivable and other short-term receivables
CHF mil. 12/31/05 12/31/04
Trade accounts receivable, gross 113.5 108.5
less allowance for doubtful accounts -5.7 -9.3
Trade accounts receivable, net 107.8 99.2
Prepayments to suppliers 0.6 0.4
Other receivables 5.7 4.3
Prepaid expenses and accrued income 2.9 2.3
Total receivables 117.0 106.2
14 Inventories
CHF mil. 12/31/05 12/31/04
Raw materials and supplies 10.6 12.3
Work in process 2.5 6.0
Finished goods (including items purchased for resale) 144.5 133.3
Allowances -36.7 -32.9
Total inventories, net 120.9 118.7
The inventories include spare parts valued at CHF 8.5 (11.4) million.