7 – Financial result
|
|
1st Quarter |
|
|---|---|---|---|
Million € |
|
2015 |
2014 |
Dividends and similar income |
|
10 |
3 |
Income from the disposal of shareholdings |
|
8 |
− |
Income from profit transfer agreements |
|
2 |
2 |
Income from tax allocation to participating interests |
|
− |
1 |
Income from other shareholdings |
|
20 |
6 |
Expenses from profit transfer agreements |
|
(2) |
(1) |
Write-downs on / losses from the sale of shareholdings |
|
(16) |
− |
Expenses from other shareholdings |
|
(18) |
(1) |
Interest income from cash and cash equivalents |
|
52 |
24 |
Interest and dividend income from securities and loans |
|
6 |
10 |
Interest income |
|
58 |
34 |
Interest expenses |
|
(164) |
(158) |
Net interest income from overfunded pension plans and similar obligations |
|
1 |
− |
Net interest income from other long-term employee obligations |
|
− |
− |
Income from the capitalization of construction interest |
|
42 |
34 |
Miscellaneous financial income |
|
− |
− |
Other financial income |
|
43 |
34 |
Write-downs on / losses from the disposal of securities and loans |
|
(1) |
(1) |
Net interest expense from underfunded pension plans and similar obligations |
|
(49) |
(37) |
Net interest expense from other long-term employee obligations |
|
(3) |
(3) |
Interest accrued on other noncurrent liabilities |
|
(16) |
(18) |
Miscellaneous financial expenses |
|
(34) |
(39) |
Other financial expenses |
|
(103) |
(98) |
Financial result |
|
(164) |
(183) |
In addition to higher income from other shareholdings, write-downs of and losses from the sale of investments arose in part due to shareholdings’ mergers with their parent companies.
The interest result improved by €18 million from minus €124 million in the first quarter of 2014 to minus €106 million in the first quarter of 2015. While interest income and interest expenses both rose, particularly through interest and currency swaps, interest expenses additionally reflected favorable conditions from refinancing financial indebtedness in the third quarter of 2014.
Other financial result improved by €4 million compared with the first quarter of 2014. Higher financial expenses were more than offset by higher other financial income, primarily from the capitalization of construction interest.
Net interest expense from underfunded pension plans and similar obligations rose compared with the previous first quarter, mainly as a result of the higher defined benefit obligation as of December 31, 2014.
Miscellaneous financial expenses in the first quarter of 2015 predominantly included hedging costs from the hedging of loans in U.S. dollars. In the same period of the previous year, the market valuation of options for the disposal of shares in Styrolution had led to an expense of €42 million. Effective as of November 17, 2014, BASF sold its share in Styrolution to the INEOS Group.