7 – Financial result
|
|
3rd Quarter |
January – September |
||
|---|---|---|---|---|---|
Million € |
|
2015 |
2014 |
2015 |
2014 |
Dividends and similar income |
|
1 |
8 |
34 |
41 |
Income from the disposal of shareholdings |
|
2 |
5 |
23 |
5 |
Income from profit transfer agreements |
|
(1) |
1 |
2 |
5 |
Income from tax allocation to participating interests |
|
– |
– |
1 |
1 |
Income from other shareholdings |
|
2 |
14 |
60 |
52 |
Expenses from profit transfer agreements |
|
(4) |
(1) |
(10) |
(4) |
Write-downs on / losses from the sale of shareholdings |
|
(4) |
(2) |
(27) |
(4) |
Expenses from other shareholdings |
|
(8) |
(3) |
(37) |
(8) |
Interest income from cash and cash equivalents |
|
42 |
59 |
143 |
113 |
Interest and dividend income from securities and loans |
|
6 |
5 |
19 |
24 |
Interest income |
|
48 |
64 |
162 |
137 |
Interest expense |
|
(153) |
(172) |
(488) |
(504) |
Net interest income from overfunded pension plans and similar obligations |
|
1 |
– |
2 |
1 |
Net interest income from other long-term employee obligations |
|
– |
– |
– |
– |
Income from the capitalization of construction interest |
|
37 |
39 |
115 |
111 |
Miscellaneous financial income |
|
– |
– |
– |
– |
Other financial income |
|
38 |
39 |
117 |
112 |
Write-downs on / losses from the disposal of securities and loans |
|
– |
(1) |
(3) |
(2) |
Net interest expense from underfunded pension plans and similar obligations |
|
(49) |
(37) |
(146) |
(110) |
Net interest expense from other long-term employee obligations |
|
– |
(3) |
(4) |
(8) |
Interest accrued on other noncurrent liabilities |
|
(17) |
(20) |
(52) |
(58) |
Miscellaneous financial expenses |
|
(36) |
(50) |
(100) |
(99) |
Other financial expenses |
|
(102) |
(111) |
(305) |
(277) |
Financial result |
|
(175) |
(169) |
(491) |
(488) |
Compared with the same periods of the previous year, income from shareholdings was down by €17 million in the third quarter of 2015 and by €21 million in the first three quarters of 2015, amounting to minus €6 million and plus €23 million, respectively.
At minus €105 million, the interest result in the third quarter of 2015 matched the level of the third quarter of 2014 (minus €108 million). In the period from January to September 2015, the interest result improved to minus €326 million (same period of 2014: minus €367 million). The improvement came primarily from more favorable refinancing conditions.
Net interest expense from underfunded pension plans and similar obligations rose in the third quarter and from January to September 2015 compared with the same periods of the previous year, mainly as a result of the higher defined benefit obligation as of December 31, 2014.
Miscellaneous financial expenses in the third quarter and first three quarters of 2015 predominantly included hedging costs from the hedging of loans in U.S. dollars. In addition to expenses for hedging loans in U.S. dollars, the period from January to September 2014 had included an expense of €42 million from the market valuation of options for the disposal of shares in Styrolution. Effective as of November 17, 2014, BASF sold its share in Styrolution to the INEOS Group.