7 – Financial result
|
|
1st Quarter |
|
|---|---|---|---|
Million € |
|
2016 |
2015 |
Dividends and similar income |
|
1 |
10 |
Income from the disposal of shareholdings |
|
1 |
8 |
Income from profit transfer agreements |
|
1 |
2 |
Income from tax allocation to participating interests |
|
− |
− |
Income from other shareholdings |
|
3 |
20 |
Expenses from profit transfer agreements |
|
(7) |
(2) |
Write-downs on / losses from the sale of shareholdings |
|
− |
(16) |
Expenses from other shareholdings |
|
(7) |
(18) |
Interest income from cash and cash equivalents |
|
42 |
52 |
Interest and dividend income from securities and loans |
|
5 |
6 |
Interest income |
|
47 |
58 |
Interest expenses |
|
(146) |
(164) |
Net interest income from overfunded pension plans and similar obligations |
|
1 |
1 |
Net interest income from other long-term employee obligations |
|
− |
− |
Income from the capitalization of construction interest expenses |
|
25 |
42 |
Miscellaneous financial income |
|
− |
− |
Other financial income |
|
26 |
43 |
Write-downs on / losses from the disposal of securities and loans |
|
(1) |
(1) |
Net interest expense from underfunded pension plans and similar obligations |
|
(43) |
(49) |
Net interest expense from other long-term employee obligations |
|
(1) |
(3) |
Interest accrued on other noncurrent liabilities |
|
(10) |
(16) |
Miscellaneous financial expenses |
|
(56) |
(34) |
Other financial expenses |
|
(111) |
(103) |
Financial result |
|
(188) |
(164) |
At minus €4 million, the balance from shareholdings in the first quarter of 2016 was €6 million lower than in the same quarter of 2015.
The interest result improved by €7 million, from minus €106 million in the first quarter of 2015 to minus €99 million in the first quarter of 2016. This came primarily from more favorable refinancing conditions.
Compared with the previous year’s first quarter, income from the capitalization of construction interest expenses decreased considerably, as major investment projects partially or fully began operations in 2015. These particularly included the TDI complex in Ludwigshafen, Germany; the production complex for acrylic acid and superabsorbents in Camaçari, Brazil; and the MDI plant in Chongqing, China.
The year-on-year decline in the net interest expense from underfunded pension plans resulted predominantly from adjusted assumptions for the discount rate and projected pension increase.
As in the previous year, miscellaneous financial expenses mostly contained hedging costs from the hedging of loans in U.S. dollars.