Earnings impacted by Arcandor insolvency and non-recurring charges

The prior-year EBIT figures were adjusted as we no longer report the return on plan assets in connection with pension obligations as part of EBIT. It is now reported under the Group’s net finance costs/net financial income.

The division reported a loss from operating activities (EBIT) of €208 million for full-year 2009 (previous year: loss of €920 million). The fourth quarter loss amounted to €171 million (previous year: loss of €1,069 million). In 2009 restructuring costs of €87 million were incurred across the business units in the division, €73 million of which in the fourth quarter alone. As a result, the loss from operating activities (EBIT) before non-recurring items amounted to €121 million for full-year 2009 and €98 million for the fourth quarter. The insolvency of Arcandor resulted in a charge of €213 million for full-year 2009 (fourth quarter: €48 million). EBIT before non-recurring items has not been adjusted for this charge. Further costs of €97 million were incurred in Europe for employee termination, other liabilities and impairment charges relating to legacy properties in 2009. The year 2008 had been impacted by write-downs on the value of the Exel brand, on goodwill and by restructuring, which altogether totalled €1,116 million. Return on sales improved to –1.7% (previous year: –6.7%). The difficult trading conditions were mitigated by restructuring initiatives and savings in indirect costs.

Strong operating cash flow of €432 million (previous year: €481 million) was generated, in part thanks to a reduction in working capital of €98 million.