Bayer posts 16% rise in first-quarter profits

24 April 2008 08:23  [Source: ICIS news]

SINGAPORE (ICIS news)--Bayer has reported a 15.8% rise in first-quarter EBITDA to €2.06bn ($3.27bn) year on year on the back of a strong performance from its healthcare and crop science business segments, the firm said on Thursday.

 

Bayer’s healthcare division posted a 23.9% rise in earnings before interest, tax and amoratisation (EBITDA) for the quarter to €970m, from €783m, while its crop science business posted a 21% jump in EBITDA to €663m, from €548m for the period ended 31 March 2008, it added.

 

In its healthcare business, oral contraceptive products and cancer drugs were the key drivers in the pharmaceutical sectors with a 33.3% and 129.9% growth in sales figures respectively, the German pharmaceuticals and chemicals company said.

 

Bayer’s crop science segment also experienced good growth due to a 13.1% expansion in its crop protection segment, with its herbicide and fungicide businesses performing particularly well, it added.

 

In its material science business, however, EBITDA fell marginally to €4.7m, from €4.9m, as sales in its hi-tech materials, systems and materials segment fell 3.7%, 1.6% and 8.9% respectively, the company said.

 

Its systems sector was affected by a weaker polyurethane business due to significantly lower raw material sales, while sales in its materials segment fell due to the difficult market conditions, Bayer added.

 

Looking ahead, the firm aimed to improve its full-year EBITDA margin to over 22%, it said, adding it aimed to boost margins at its healthcare and crop science segments before special items to 27% and 24% respectively.

 

The company forecast uncertainty in its material science business sector throughout 2008 due to fluctuations in raw material prices and the unpredictable business environment.

 

($1 = €0.63)

By: Serene Cheong
+65 6780 4359

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