Operating income and net earnings

Operating income of €532m excluding particular items, compared with €331m in 2009

Excluding particular items, operating income rose by 1.9 point, going from 3.9% in 2009 to 5.8% in 2010, giving operating income of 532 million euros (331 million euros in 2009)

Review of operating income excluding particular items by Business Group:

• Operating income excluding particular items for the Mining-Front End Business Group came to 391 million euros (10.5% of revenue), compared with 278 million euros in 2009 (8.0% of revenue). This noticeable increase is due in particular to the increase in AREVA’s average uranium sales price and volumes sold and to the drop in the average cost of mine production (-7% for the year). Performance improved in the Fuel business after restructuring in the United States. Overhead cost optimization plans in the European industrial base in Fuel and Enrichment had a positive impact on overall profitability for the Business Group.
• The Reactors & Services Business Group reported operating income of 176 million euros (5.2% of revenue) excluding particular items, compared with 42 million euros in 2009. This strong increase is due to a higher business volume in Installed Base Business and by lower overhead costs and spending control in Research and Development
• The Back End Business Group recognized operating income of 280 million euros, for an operating margin of 16.4%, up 2 points from that of 2009 (14.4%). This is attributable to the increase in volumes treated at La Hague and good profitability of the cold crucible operations.
• Operating income in the Renewable Energies Business Group was -123 million euros in 2010, compared with -60 million euros in 2009. The change is due to the resources deployed to resolve the technical difficulties encountered by the Alpha Ventus offshore wind farm – which now operates with 96% availability – and the development costs of the solar business following the takeover of the Californian company Ausra in March 2010.

Particular items:

The main particular items recognized in the second half of 2010 are as follows:

• The financial impact of the agreement reached following mediation by the French State on the conditions for closing the Georges Besse plant, in the amount of -121 million euros in 2010. The production level of the plant in 2011 and 2012 will not be sufficient to cover the fixed costs for the end of the plant lifecycle;
• The non-cash reversible impairment of -126 million euros to reflect the rescheduling of the capex plan for some mining projects.

As a reminder, the main particular items recognized in the first half of 2010 were as follows:

• The non-cash reversible impairment of certain mining assets in the amount of -300 million euros;
• Additional provisions for the revision of the loss at completion of projects in the Reactors & Services BG in the amount of -417 million euros (including -367 million euros for the OL3 construction project in Finland).

After recognition of the particular items, consolidated operating income is -423 million euros, compared with 97 million euros in 2009

Operating income for 2010 by division

Net income attributable to equity owners of the parent: €883m

Net income attributable to equity owners of the parent came to 883 million euros in 2010, an increase of 331 million euros compared with 2009.

• Net income from discontinued operations was 1.226 billion euros. This primarily relates to the gain on the sale of the Transmission & Distribution business;
• The share in net income of associates rose to 153 million euros in 2010, compared with -152 million euros in 2009, reflecting the significant improvement in STMicroelectronics’ and Eramet’s results; 
• Net financial income came to -314 million euros in 2010, compared with 187 million euros in 2009, which benefitted from the gain on the disposals of Total and GDF Suez shares. It was impacted in 2010 by the loss of 101 million euros recognized on the disposal of STMicroelectronics shares;
• Tax income rose to 334 million euros in 2010, compared with 138 million euros in 2009.