sain t-gobain annu al report 2008 annual report

NOTE 23
Recurring net income
and cash flow from operations
Recurring net income totaled €1,914 million in 2008 (2007:
€2,114 million; 2006: €1,702 million). Based on the weighted
average number of shares outstanding at December 31
(374,998,085 shares in 2008, 367,124,675 shares in 2007 and
341,048,210 shares in 2006), recurring earnings per share
amounted to €5.10 in 2008, €5.76 in 2007 and €4.99 in 2006.
The difference between net income and recurring net income
(attributable to the equity holders of the parent) corresponds
to the following items:
(in € millions) 2008 2007 2006
Net income 1,378 1,487 1,637
Less:
Gains on disposals of assets 53 394 175
Impairment of assets (181) (375) (211)
Provision for competition litigation (400) (694) 0
Non-recurring charges
to provisions for warranties (51) 0 0
Impact of minority interests 6 (2) (3)
Tax impact 37 50 (26)
Recurring net income 1,914 2,114 1,702
NOTE 24
Earnings per share
The calculation of earnings per share is shown below.
(in € millions)
Cash flow from operations for the year amounted to
€3,487 million (2007: €3,762 million; 2006: €3,347 million).
Excluding tax on capital gains and losses, cash flow from
operations came to €3,487 million (2007: €3,712 million;
2006: €3,373 million).
These amounts are calculated as follows:
(in € millions) 2008 2007 2006
Net income attributable to equity
holders of the parent 1,378 1,487 1,637
Minority interests in net income 59 56 45
Share in net income of associates,
net of dividends received (7) (6) (2)
Depreciation, amortization
and impairment of assets 1,681 1,875 1,717
Gains and losses
on disposals of assets (53) (394) (175)
Charge to provision
for competition litigation 400 694 0
Non-recurring charges
to provisions for warranties 51 0 0
Unrealized gains and losses arising
from changes in fair value
and share-based payments 15 50 125
Cash flow from operations 3,524 3,762 3,347
Tax on capital gains and losses (37) (50) 26
Cash flow from operations
before tax on capital gains
and losses 3,487 3,712 3,373
Net income Number Earnings
attributable of shares per
to equity
share
holders of (in €)
the parent
2008
Weighted average number of shares outstanding 1,378 374,998,085 3.67
Weighted average number of shares assuming full dilution 1,378 376,825,178 3.66
2007
Weighted average number of shares outstanding 1,487 367,124,675 4.05
Weighted average number of shares assuming full dilution 1,487 374,344,930 3.97
2006
Weighted average number of shares outstanding 1,637 341,048,210 4.80
Weighted average number of shares assuming full dilution 1,652 (1) 363,809,234 4.54
(1) In 2006, net interest on the Oceane convertible bonds (€15 million) was cancelled for the calculation of diluted earnings per share.
171 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Saint-Gobain – Financial Report 2008