Bayer reports higher operating income, continues positive momentum

Bayer reports higher operating income, continues positive momentum

5:03 PM, 28th July 2011
Bayer reports higher operating income, continues positive momentum
Dr Marijn Dekkers, CEO, Bayer.

 

· Sales up 5.4 per cent on an adjusted basis to €9,252 million

· Operating result (Ebit) advances 25.9 per cent to €1,273 million

· Ebitda before special items increases by 5.8 per cent to €2,035 million

· Net income rises by substantial 40.9 per cent to €747 million

· Group outlook for 2011 confirmed

LEVEKUSEN, GERMANY: Bayer Group continued its successful performance in the second quarter of 2011. Furthermore, the efficiency-enhancing measures announced in November 2010 are being implemented as planned. Bayer’s CEO is optimistic for the current fiscal year and confirmed the sales and earnings forecast for 2011 that was raised in April.

“We are pleased with the way our business performed. We have also achieved significant progress with products from our research and development pipeline,” said Dr Marijn Dekkers, CEO, Bayer.  

Sales of Bayer Group grew by 0.8 per cent in the second quarter to €9,252 million (Q2 2010: €9,179 million). Business performance in the emerging markets made an above-average contribution to this development. The operating result (Ebit) advanced by a substantial 25.9 per cent to €1,273 million (Q2 2010: €1,011 million).

Earnings before interest, taxes, depreciation and amortization (Ebitda) - before special items - improved by 5.8 per cent to €2,035 million (Q2 2010: €1,923 million). Bayer grew net income by a very substantial 40.9 per cent, to €747 million (Q2 2010: €530 million). Core earnings per share rose by 11.2 per cent to €1.29 (Q2 2010: €1.16).

Sales of the healthcare subgroup declined by 2.3 per cent in the second quarter to €4,208 million (Q2 2010: €4,305 million). Second-quarter Ebitda before special items of Bayer healthcare climbed by 3 per cent to €1,156 million (Q2 2010: €1,122 million).

Sales of the CropScience subgroup climbed by 3.1 per cent to €1,943 million (Q2 2010: €1,884 million). Ebitda before special items of CropScience rose by 23.9 percent to €471 million (Q2 2010: €380 million), due above all to the good business development and improved production capacity utilization.

In the second quarter of 2011, sales of high-performance materials increased again by 3.5 per cent to €2,782 million (Q2 2010: €2,689 million). Ebitda before special items of MaterialScience was level year on year at €372 million (Q2 2010: €373 million).

“We confirm the full-year sales and earnings forecast that we raised in April,” said Dekkers. Bayer continues to target a currency- and portfolio-adjusted sales increase of between 5 and 7 per cent. This corresponds to group sales of between €36 billion and €37 billion. Bayer still plans to increase Ebitda before special items to more than €7.5 billion.

(C) WOC News

 

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