• Sales
• Earnings structure
• Reconciliation to group net income
• Development of other major items in the statement of income
• Value added

Development of other major items in the statement of income

Group gross profit rose to €5,326 million, exceeding the €4,636 million in 2009 by 15% (10% in constant currency). We improved the gross margin to 33.3% (2009: 32.7%). The cost of sales rose by 12% to €10,646 million (2009: €9,528 million). Cost of sales as a percentage of Group sales decreased from 67.3% in 2009 to 66.7%. Selling, general, and administrative expenses consisted primarily of personnel costs, marketing and distribution costs, and depreciation and amortization. These expenses rose by 14% to €2,664 million (2009: €2,342 million). Their ratio as a percentage of Group sales was 16.7% (2009: 16.5%). Depreciation and amortization was €639 million (2009: €562 million). Their ratio as a percentage of sales was 4.0% in 2010 (2009: 4.0%).

The chart besides shows the earnings structure in 2010.

Group net interest was -€566 million (2009: -€580 million). Lower average interest rates on liabilities had a positive effect, negative currency effects impacted Group net interest due to the strength of the U.S. dollar.

The other financial result of -€66 million includes the valuation changes of the fair redemption value of the Mandatory Exchangeable Bonds (MEB) of -€98 million and the Contingent Value Rights (CVR) of €32 million. Both are non-cash items.

The adjusted Group tax rate (adjusted for the effects of the mark-to-market accounting of MEB and CVR) rose to 32.9% (2009: 31.4%; the revaluation of a tax claim at Fresenius Medical Care had a positive effect).

Noncontrolling interest rose to €583 million from €497 million in 2009 mainly due to the good earnings performance at Fresenius Medical Care. Of this, 93% was attributable to the noncontrolling interest in Fresenius Medical Care.

The table below shows the profit margin progress.