INCOME STATEMENT INCLUDING
STATEMENT OF RECOGNISED INCOME AND EXPENSE

INCOME STATEMENT

(€ thousands) Notes 2011 2010
Sales revenue 10 2,091,046 1,939,254
       
Changes in inventories 58,922 12,260
Work performed and capitalised 1,400 2,271
Total output of operations 2,151,368 1,953,785
       
Other operating income 11 33,397 35,921
Cost of materials 12 – 912,991 – 790,855
Staff costs 13 – 697,981 – 649,844
Depreciation and amortisation expense 1 – 50,995 – 48,148
Other operating expenses 14 – 383,879 – 339,507
Other taxes – 8,572 – 8,304
130,347 153,048
       
Financial income 15 14,533 11,410
Financial expense 15 – 24,403 – 28,662
– 9,870 – 17,252
       
Earnings before income taxes 120,477 135,796
Taxes on income 16 – 37,184 – 45,836
Earnings after income taxes 83,293 89,960
Attributable to:
Non-controlling interest 17 11,343 12,525
Shareholders of KSB AG 71,950 77,435
       
Diluted and basic earnings per ordinary share (€) 19 40.95 44.09
Diluted and basic earnings per preference share (€) 19 41.21 44.35

Statement of Recognised Income and Expense

(€ thousands) 2011 2010
Earnings after income taxes 83,293 89,960
Measurement of financial instruments – 3,137 – 380
Currency translation differences – 15,215 39,099
Other income and expense recognised directly in equity – 29 507
Taxes on items recognised directly in equity 937 – 220
Total earnings recognised directly in equity – 17,444 39,006
Total recognised income and expense 65,849 128,966
Attributable to:
Non-controlling interest 6,939 21,004
Shareholders of KSB AG 58,910 107,962