Income from operations and special items

Income from operations (EBIT)

  • EBIT before special items, EBIT and EBIT after cost of capital rise
  • Premium once again earned on cost of capital
  • Special income mainly from reclassification of GASCADE Gastransport GmbH and disposal of share in Edvard Grieg development project

At €7,273 million, income from operations before special items for the BASF Group in 2013 was up from the previous year’s level (€6,742 million).

Special items in 2013 resulted in an earnings contribution of €83 million (2012: €95 million).

Divestitures of €591 million contributed to this total, which primarily included special income from the reclassification of GASCADE Gastransport GmbH, headquartered in Kassel, Germany, due to loss of control, as well as from the disposal of a 15-percent share in the Edvard Grieg development project in Norway. Divestitures had contributed €605 million to earnings in 2012, especially as a result of disposal gains from the fertilizer business.

Special charges for various restructuring measures fell by €16 million year-on-year to €257 million. By contrast, special charges for the integration of acquired businesses increased to €86 million (2012: €2 million).

Moreover, other special charges totaling €165 million arose in 2013. These primarily concerned impairments related to a plant in the Chemicals segment as well as to a gas field development project in the Oil & Gas segment. Other special charges of €235 million in 2012 were mostly attributable to impairment charges on a Norwegian oilfield development project.

Income from operations after cost of capital grew by €708 million to €1,872 million. This means we once again earned a high premium on our cost of capital.

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Special items (million €)

 

2013

2012

Integration costs

(86)

(2)

Restructuring measures

(257)

(273)

Divestitures

591

605

Other charges and income

(165)

(235)

Total special items reported in income from operations (EBIT)

83

95

Special items reported in financial result

119

(88)

Total special items reported in income before taxes

202

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