Sanofi-aventis Announces 2007 Earnings Ahead of Guidance Sharp Rise in Propose...(theeuro/dollar exchange rate and to timi...),Health

A restructuring charge of euro 87 million (euro 60 million after tax) was recognized to cover a new program of cost adaptation measures in Germany.

Net financial expenses came to euro 28 million, against net financial income of euro 66 million in the comparable period of 2006 (the fourth quarter of 2006 included a gain of euro 101 million on the sale of the interest in Rhodia). Interest expense on debt was euro 47 million, compared with euro 36 million for the fourth quarter of 2006, with the positive effect of debt reduction more than canceled out by the impact of higher interest rates.

Income tax expense was euro 464 million, compared with euro 534 million in the fourth quarter of 2006. The reported tax rate was 25.1%, against 27.2% for the comparable period of 2006. The settlement of various tax disputes resulted in the release of euro 93 million of provisions (treated as a selected item).

The share of profits from associates was euro 178 million, versus euro 50 million for the fourth quarter of 2006, thanks to the sharp rise in sales of Plavix(R) in the United States. The share of after-tax profits from territories managed by BMS (primarily the United States) under the Plavix(R) and Avapro(R) alliance was euro 149 million, versus euro 12 million in the fourth quarter of 2006.

Minority interests totaled euro 97 million, compared with euro 103 million in the fourth quarter of 2006. This line includes the share of pre-tax profits paid to BMS from territories managed by sanofi-aventis (euro 96 million, compared with euro 98 million in the fourth quarter of 2006).

Adjusted net income was up 6.2% at euro 1,462 million, and adjusted earnings per share (adjusted EPS) was euro 1.09 (6.9% up on the 2006 fourth- quarter figure of euro 1.02), based on an average number of shares outstanding of 1,335.3 million in the fourth quarter of 2007 and 1,3
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