Income statement disclosures

10 Sales revenues

The changes in the consolidated Group in the year under review accounted for € 35,381 thousand; in the prior-period consolidated financial statements they would have accounted for € 24,059 thousand.

Sales revenue includes revenue from the sale of goods and goods purchased and held for resale amounting to € 1,773,346 thousand (previous year: € 1,782,444 thousand) as well as revenue for services rendered amounting to € 165,908 thousand (previous year: € 110,396 thousand).

The breakdown of sales revenue by product group as well as by country of origin and third country is presented in the segment reporting.

11 Other operating income

Miscellaneous other income relates primarily to services income, commission income, rental and lease income, insurance compensation, grants and subsidies.

Income from government grants for individual projects amounted to € 470 thousand (previous year: € 1,022 thousand).

The changes in the consolidated Group did not have any material impact on other operating income; the same would have been reported in the prior-period consolidated financial statements.

12 Cost of materials

The changes in the consolidated Group in the year under review accounted for € 10,126 thousand; in the prior-period consolidated financial statements they would have accounted for € 6,855 thousand.

13 Staff costs

Pension costs are reduced by the interest component of provisions for pensions and similar obligations, which is reported as an interest cost in financial income / expense.

The changes in the consolidated Group in the year under review accounted for € 14,230 thousand; in the prior-period consolidated financial statements they would have accounted for € 9,861 thousand.

The changes in the consolidated Group in the year under review led to the addition of 270 people.

14 Other operating expenses

Miscellaneous other expenses relate primarily to warranties, contractual penalties and additions to provisions.

The changes in the consolidated Group in the year under review accounted for € 6,329 thousand; in the prior-period consolidated financial statements they would have accounted for € 4,614 thousand.

15 Financial income / expense

Interest and similar expenses include the interest cost on discounted pension provisions amounting to € 12,561 thousand (previous year: € 12,439 thousand). The increase in interest and similar income is attributable to the Group’s improved financial position. Write-downs of financial assets relate primarily to the above-mentioned impairment losses on the carrying amount of investments in non-consolidated companies due to economic difficulties.

The changes in the consolidated Group did not have any material impact on the financial income / expense; the same would have been reported in the prior-period consolidated financial statements.

16 Taxes on income

All income-related taxes of the consolidated companies and deferred taxes are reported in this item. Other taxes are reported in the income statement after other operating expenses.

€ 7 thousand (previous year: € 224 thousand) of the effective taxes in the year under review related to prior-period tax refunds and € 803 thousand (previous year: € 931 thousand) to tax arrears.

At the reporting date, deferred tax assets amounting to € 1,293 thousand (previous year: € 1,332 thousand) were recognised, whose realisation exclusively depends on the creation of future profit. Based on the planning figures available, we expect realisation to take place.

As in the previous year, the introduction of new local taxes had no significant material effects in the year under review. Equally, changes in foreign tax rates did not have any significant impact on the total tax expense (€ 840 thousand), as in 2009.

In the case of net income from affiliates and other equity investments, withholding taxes incurred in connection with distributions and German taxes incurred are recognised as deferred taxes if these gains are expected to be subject to corresponding taxation, or there is no intention of reinvesting them in the long term.

We did not recognise deferred tax assets from loss carryforwards amounting to € 41,841 thousand (previous year: € 17,334 thousand) because it is unlikely that there will be sufficient taxable profit available in the near future against which these deferred tax assets can be utilised. The same applies to minor deductible temporary differences.

The applicable tax rate of 29 % is a composite rate resulting from the current German corporation tax, solidarity surcharge and trade income tax rates.

The tax effects in the amount of € – 220 thousand recognised in the statement on recognised income and expense relate, among other things, to the measurement of financial instruments.

The changes in the consolidated Group did not have any material impact on the taxes on income; the same would have been reported in the prior-period consolidated financial statements.

17 Earnings after income taxes – Non-controlling interest

The non-controlling interest in net profit amounts to € 12,767 thousand (previous year: € 14,826 thousand), and the non-controlling interest in net loss amounts to € 242 thousand (previous year: € 82 thousand). These relate primarily to PAB GmbH, Frankenthal, Germany, and the interests it holds.

The changes in the consolidated Group did not have any impact on the earnings after income taxes attributable to non-controlling interest; the same would have been reported in the prior-period consolidated financial statements.

18 Research and development costs

Research and development costs in the year under review amounted to € 41,120 thousand (previous year: € 34,352 thousand).

The changes in the consolidated Group did not have any impact on the research and development costs; the same would have been reported in the prior-period consolidated financial statements.

19 Earnings per share

The changes in the consolidated Group did not have any material impact on the earnings per share; the same would have been reported in the prior-period consolidated financial statements.