Net interest expenses amounted to $5.9 million in the fourth quarter of 2012, compared to $8.8 million in the previous quarter and $2.0 million in the same period of 2011.
Other financial results generated a loss of $9.5 million during the fourth quarter of 2012, compared to a loss of $15.2 million during the third quarter of 2012 and a loss of $5.4 million in the same period of 2011. 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.
Equity in earnings of associated companies generated a loss of $108.2 million in the fourth quarter of 2012, compared to gains of $14.4 million in the previous quarter and $13.0 million in the same period of 2011. During the fourth quarter of 2012 we recorded impairment charges amounting to $73.7 million on our investment in Usiminas, reflecting changes to the operating environment in Brazil, particularly in relation with Usiminas mining projects. In addition, the Usiminas impairment had an indirect negative impact on our investment in Ternium.
Income tax charges totalled $112.1 million in the fourth quarter of 2012, equivalent to 20% of income before equity in earnings of associated companies and income tax, compared to 24% in the previous quarter and 22% in the same period of 2011.
Results attributable to non-controlling interests amounted to losses of $7.3 million in the fourth quarter of 2012, compared to gains of $1.1 million in the previous quarter and gains of $26.8 million in the fourth quarter of 2011. Losses during the fourth quarter of 2012 are mainly attributable to our Japanese operations. Year on year, the reduction in gains attributable to non controlling interests is due to the acquisition of all the non controlling interests in Confab during the second quarter of 2012.
Cash Flow and Liquidity of 2012 Fourth Quarter
Net cash provided by operations during the fourth quarter of 2012 was $346.6 million, compared to $491.4 million in the previous quarter and $456.2 million in the fourth quarter of 2011. Working capital increased by $247.3 million during the fourth quarter of 2012 (mainly due to an increase in trade receivables associated with our December shipments), compared to an increase of $107.1 million in the previous quarter and of $157.0 million in the fourth quarter of 2011.
Capital expenditures amounted to $201.8 million for the fourth quarter of 2012, compared to $187.0 million in the previous quarter and $188.7 million in the fourth quarter of 2011.
During the quarter, our net debt (total borrowings less cash and other current investments) increased by $5.5 million to $271.3 million at the end of the quarter, following the payment of an interim dividend of $153.5 million in November 2012.
Analysis of 2012 Annual Results Increase / Tubes sales volume (metric tons) FY 2012 FY 2011 (Decrease)Seamless 2,676,000 2,613,000 2%Welded 1,188,000 1,134,000 5%Total 3,864,000 3,747,000 3% Increase / Tubes FY 2012 FY 2011 (Decrease)Net sales ($ million)- North America 4,953.6 4,060.9 22%- South America 2,305.4 2,079.5 11%- Europe 1,042.1 1,056.5 (1%)- Middle East & Africa 1,246.7 1,330.7 (6%)- Far East & Oceania 475.5 584.1 (19%)Total net sales 10,023.3 9,111.7 10%Operating income ($ million) 2,251.8 1,702.2 32%Operating income (% of sales) 22% 19%
