Other operating income and expenses resulted in net income of US$5.0 million in 2011, compared to a net income of US$78.6 million in 2010, when we recorded a gain of US$67.3 million from the reversal of an impairment at our Canadian welded operations.
Net interest expenses totalled US$21.6 million in 2011, compared to US$31.2 million in 2010.
Other financial results generated a gain of US$11.3 million in 2011, compared to a loss of US$21.3 million during 2010. These results largely reflect gains and losses on net foreign exchange transactions and the fair value of derivative instruments and are to a large extent offset by changes to our net equity position. These losses are mainly attributable to variations in the exchange rates between our subsidiaries' functional currencies (other than the US dollar) and the US dollar in accordance with IFRS.
Equity in earnings of associated companies generated a gain of US$61.5 million in 2011, compared to US$70.1 million in 2010. These gains were derived mainly from our equity investment in Ternium.
Income tax charges totalled US$525.2 million in 2011, equivalent to 28% of income before equity in earnings of associated companies and income tax, compared to US$450.0 million in 2010, equivalent to 30% of income before equity in earnings of associated companies and income tax.
Net income increased to US$1,420.7 million in 2011, compared to US$1,141.0 million in 2010, mainly reflecting higher operating results.
Income attributable to equity holders was US$1,331.2 million, or US$1.13 per share (US$2.26 per ADS), in 2011, compared to US$1,127.4 million, or US$0.95 per share (US$1.91 per ADS) in 2010.
Income attributable to non-controlling interest was US$89.6 million in 2011, compared to US$13.7 million in 2010, mainly reflecting higher results at our Brazilian subsidiary, Confab.
Cash Flow and Liquidity of 2011
Net cash provided by operations during 2011 was US$1,283.3 million, compared to US$870.8 million during 2010. Working capital increased by US$646.4 million during 2011, compared with an increase of US$644.0 million in 2010, reflecting the positive change in the levels of activity.
Capital expenditures amounted to US$862.7 million in 2011, compared to US$847.3 million in 2010, as we continued with the investments to complete the new small diameter rolling mill at our Veracruz facility in Mexico.
Dividends paid, including dividends paid to minority shareholders in subsidiaries, amounted to US$424.1 million in 2011, of which US$248 million were paid to equity holders in respect of the 2010 fiscal year, while US$153 million were paid to equity holders in November 2011, as an interim dividend in respect of the dividend corresponding to the 2011 fiscal year. This compares to US$433.3 million paid in 2010, with the same amount of dividends paid to equity holders.
During 2011, total financial debt decreased by US$313.6 million to US$930.9 million at December 31, 2011 from US$1,244.5 million at December 31, 2010. Liquidity (cash and cash equivalents and other current investments) decreased by US$265.6 million to US$1,254.5 million at December 31, 2011 from US$1,520.1 million at December 31, 2010. Net cash during 2011 increased by US$48.1 million to US$323.6 million at December 31, 2011, from US$275.6 million at December 31, 2010.
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