Income from operations and special items

  • Income from operations rises slightly
  • High premium once again earned on cost of capital

At €7,626 million, income from operations for the BASF Group in 2014 was up from the previous year’s level (€7,160 million).

This includes earnings from companies accounted for using the equity method.

Special items in 2014 resulted in an earnings contribution of €269 million (2013: €83 million).

Of this, €712 million pertained to divestitures, especially the sale of our 50% share in Styrolution Holding GmbH. Also contributing to the total were the divestiture of oil and gas fields on the British continental shelf to the MOL Group, as well as the sale of our 50% share in Ellba Eastern Private Ltd. and of the PolyAd Services business. In 2013, divestitures had led to an earnings contribution of €591 million.

Compared with the previous year, special charges from various restructuring measures declined by €189 million to €68 million and expenses for the integration of acquired businesses by €80 million to €6 million.

Miscellaneous special charges increased by €204 million in 2014 to €369 million. These predominantly included asset impairments in the Oil & Gas, Chemicals and Functional Materials & Solutions segments. In 2013, other special charges of €165 million had especially pertained to impairment charges in the Chemicals and Oil & Gas segments.

We once again earned a high premium on our cost of capital in 2014. EBIT after cost of capital amounted to €1,368 million after €1,768 million in the previous year. Cost of capital rose mainly as a result of the increased amount of fixed assets and higher inventories.

Special items (in million €)

 

 

2014

2013

Integration costs

 

(6)

(86)

Restructuring measures

 

(68)

(257)

Divestitures

 

712

591

Other charges and income

 

(369)

(165)

Total special items in income from operations (EBIT)

 

269

83

Special items reported in financial result

 

197

119

Total special items in earnings before taxes

 

466

202