Bayer boosts Q1 profits with Schering/divestments

26 April 2007 10:29  [Source: ICIS news]

LONDON (ICIS news)--Bayer on Thursday said it had exceeded analysts profits estimates in the first quarter and generated a net profit for the period boosted by divestments and the acquisition of drugs group Schering.

First quarter operating profits (earnings before interest and tax - EBIT) before special items were 17% higher at approximately €1.4bn ($1.9bn). After special charges first quarter 2007 EBIT was up 12% at €1.2bn.

Banks estimates of the group’s first quarter operating profits had averaged €1.2bn, Bayer said.

The company said its MaterialScience subgroup earnings before interest, tax deprecation and amortisation (EBITDA) had been hit by cost increases of some €140m but that underlying EBITDA of €400m was well above the fourth quarter 2006 outcome.

Bayer group EBITDA were 27% ahead at €2.0bn led by almost doubled healthcare profits helped by Schering and the group’s consumer health business.

Bayer CropScience EBITDA rose by 6% to roughly €580m, it said, on higher volumes and an improved cost structure.

Net income for the quarter was €2.8bn, Bayer said, against the €600m earned in the first quarter of 2006.

The 2007 figure included a gain of just under €2.2bn from the divestments of group’s diagnostics business and of metal products producer H C Starck.

Bayer’s shares rose on the unscheduled news and were trading up 2.5% at €52.08 at 08:43 GMT on Thursday.

First quarter sales had risen 23% to €8.4bn with healthcare sales of €3.6bn including €1.4bn of sales from Schering. Bayer CropScience sales were €1.8bn and Bayer MaterialScience sales €2.6bn.

Bayer said it will release further retails of its first quarter results on 8 May.

By: Nigel Davis
+44 20 8652 3214

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