Bayer’s fourth-quarter profits rise 87%

“It was another very successful year for Bayer from both an operational and a strategic perspective,” Bayer’s chairman Werner Wenning said.

While the crop and material science manufacturer’s sales for the period rose around 1% to €8bn, its net income dropped around 78% to €67m due to a one-time non-cash tax expense, it added.

The material science division reported fourth-quarter EBIT of €199m, up 52%, on increased production and higher selling prices, while its sales rose 1.9% to €2.6bn, the company said.  

Its crop science segment's EBIT rose to €7m in the quarter, from a €42m loss year on year, due to positive conditions in agricultural markets worldwide, while its sales rose 2.2% to €5.8bn, it said.

Meanwhile, for full-year 2007 Bayer’s EBIT rose 14% to €3.1bn, while sales rose 11% to €32.4bn, the company said.

Bayer intended to improve its operating margins in 2008 and expected its crop science division to sustain its present growth levels, it added.

However, the material science segment could face a more difficult market environment this year due to highly volatile raw material prices, Bayer said.

“To safeguard long-term growth, Bayer plans to spend €1.7bn on property, plant and equipment in 2008. Research and development spending is expected to increase to €2.8bn,” the firm said.

Bayers’s stock was down 1.9% to €53.05 at 09:24 GMT on Frankfurt's XETRA Exchange.

($1 = €0.66)

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