Sanofi-aventis Announces 2007 Earnings Ahead of Guidance Sharp Rise in Propose...(after tax treated as aselected item) on ...),Health

Operating income - current(1) was virtually unchanged at euro 9,617 million. The operating margin ratio improved by 0.4 of a point to 34.3%. Excluding the effect of exchange rates, operating income - current advanced by 6.5%.

The financial statements include a restructuring charge of euro 137 million (euro 95 million after tax) for the ongoing cost adaptation program launched in France in 2006 and for a new program initiated in Germany.
In 2006, the financial statements included:

-- gains on disposal of euro 553 million, mainly on the sale of the

Exubera(R) rights (euro 460 million, or euro 384 million after tax) and

the sale of the residual stake in the Animal Nutrition business (euro

45 million, or euro 31 million after tax);

-- impairment losses of euro 217 million taken against property, plant and

equipment and intangible assets, including euro 114 million for the

impairment of industrial assets associated with Ketek(R).

Net financial expense was euro 139 million, compared with euro 80 million in 2006. Interest expense on debt amounted to euro 223 million, compared with euro 286 million in 2006.

Income tax expense totaled euro 2,572 million, versus euro 2,816 million in 2006. The 2007 figure includes a net gain of euro 337 million relating to movements in provisions for tax risks and settlements of tax disputes, and a deferred tax expense of euro 51 million related to cuts in tax rates in Germany, Spain and the United Kingdom. The 2006 figure was influenced by the low income tax charge arising on the Exubera(R) gain. The effective tax rate for 2007 was 30.6%, unchanged from the 2006 figure.

The share of profits of associates was euro 760 million, against euro 559 million for 2006. The share of after-tax profits from territories managed by BMS un
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