31.12.2011  31.12.2010
(EUR 000) Income Cost Net Income Cost Net
Interest and commissions 2,528 2,769 (241) 1,110 3,068 (1,958)
Exchange-rate differences 17,415 18,399 (984) 28,474 29,328 (854)
Income from fair-value measurement recognised in Income Statement 6,164 3,019 3,145 3,860 4,660 (800)
Interest on severance pay provision - 681 (681) - 664 (664)
Interest on other defined-benefit plans - 435 (435) - 396 (396)
Other finance income (costs) 2 2,226 (2,224) 145 115 30
Total net finance income and costs 26,109 27,529 (1,420) 33,589 38,231 (4,642)
Total finance income and costs from related parties 648 - 648 719 851 (132)
Total 26,757 27,529 (772) 34,308 39,082 (4,774)

At 31 December 2011, net finance costs from third parties totalled EUR 1,420 thousand compared with EUR 4,642 thousand recorded at 31 December 2010.
The change of EUR 3,222 thousand, due to the decrease in costs for EUR 10,702 thousand has been offset only partially by the reduction in finance income for EUR 7,480 thousand.
This change may be attributable to:

  • the significant improvement in the fair value results of the derivative contracts still outstanding at the closing date of these financial statements (EUR 3,945 thousand);
  • the increase in net income for interest going from a net value of -1,958 in 2010 to -241 in 2011. This is influenced by other interest income of the Group parent in the amount of EUR 1,076 thousand for the purchase of short-term securities (Eurobond) having a nominal value of EUR 25,000 thousand, fixed rate of 4.5% and maturity at August 2012, recorded in the financial statements under financial assets at fair value, and for EUR 945 thousand by other finance costs as difference between the purchase value and the fair value at 31 December 2011 of the same.

Net finance income from related parties at 31 December 2011 totalled EUR 648 thousand with an increase of EUR 780 thousand compared with 31 December 2010 (negative for EUR 132 thousand).

As shown in the table, due to the adoption of the equity method in recognising defined-benefit plans, interest costs are now classified under net finance income (costs) and no longer under personnel costs (EUR 681 thousand at 31 December 2011 compared with EUR 664 thousand at 31 December 2010).

Registered Office: 16151 Genoa Via Paolo Mantovani, 3 - 5
Paid-in Share Capital EUR 70,000,000 R.E.A. n. 421689 Register of Enterprises of Genoa Tax Code 01371160662
A Finmeccanica Company