The reduction in financial expenses relative to 2008 is largely due to the significant drop in interest rates, as partly offset by an increase in average debt over the period.
Financial expenses
|
(thousands of Euro)
|
|
2009
|
2008
|
|
Financial expenses:
|
|
|
|
|
- expenses from hedges of economic exchange risk
|
|
(12,012)
|
(12,825)
|
|
- expenses from hedges of transaction exchange risk
|
|
(375)
|
(19,501)
|
|
- expenses from hedges of translation exchange risk
|
|
(418)
|
(1,164)
|
|
- expenses from hedges of interest rate risk
|
|
-
|
(196)
|
|
- interest on bank loans
|
|
(16,020)
|
(37,586)
|
|
- early settlement trade discounts
|
|
(2,057)
|
(2,296)
|
|
- bank charges and commissions
|
|
(2,404)
|
(2,520)
|
|
- sundry other financial expenses
|
|
(937)
|
(2,310)
|
|
- interest on advances against receivables
|
|
(201)
|
(303)
|
|
- interest on loans from other lenders
|
|
(106)
|
(230)
|
|
- interest on bank overdrafts
|
|
(164)
|
(370)
|
|
Total
|
|
(34,694)
|
(79,301)
|
The financial expenses from derivatives refer to the time value component of hedges of economic, transaction and translation exchange risk, both in the case of fair value hedges and cash flow hedges which are always recognized through the statement of income.
Financial income
|
(thousands of Euro)
|
|
2009
|
2008
|
|
Financial income:
|
|
|
|
|
- income from hedges of economic exchange risk
|
|
10,558
|
13,475
|
|
- income from hedges of transaction exchange risk
|
|
2,600
|
21,613
|
|
- income from hedges of translation exchange risk
|
|
647
|
1,230
|
|
- income from hedges of interest rate risk
|
|
-
|
187
|
|
- interest income on current, currency and deposit accounts
|
|
266
|
895
|
|
- interest income from receivables
|
|
432
|
433
|
|
- sundry other financial income
|
|
243
|
28
|
|
Total
|
|
14,746
|
37,861
|
The financial income from derivatives refers to the time value component of hedges of economic, transaction and translation exchange risk, both in the case of fair value hedges and cash flow hedges which are always recognized through the statement of income.