Bayer's Q1 net profit surges 63% on higher MaterialScience sales

29 April 2010 09:06  [Source: ICIS news]

SINGAPORE (ICIS news)--Bayer's first-quarter net income jumped 63% year on year to €693m, partly due to improved sales from its MaterialScience segment, the German specialty chemicals maker said on Thursday.

MaterialScience's sales rose 35.5% to €2.22bn due to significantly higher demand from all of its customer industries, compared with a “very weak previous year”, Bayer said in a statement.

Meanwhile, sales from its CropScience segment dipped 7.9% to €1.95bn, while sales from the company’s HealthCare segment rose slightly to €3.87bn from €3.84bn in the first quarter of 2009, it said.

On the group level, earnings before interest and taxes (EBIT) in the first quarter increased 25.3% to €1.27bn, from €1.02bn in the year-ago period.

Its earnings in the first quarter were diminished by special charges – related entirely to litigations - of €77m, as compared to €44m in the year-ago period, the company said.

These included €29m from HealthCare operations and €48m for CropScience, it added.

Moving forward, the company said that the decline in business momentum at HealthCare and CropScience was being offset by the recovery at MaterialScience, and that it had raised its earnings forecast for the group in 2010.

“We now aim to increase EBITDA before special items to more than €7 billion,” it said.

($1 = €0.76)

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By: Nurluqman Suratman

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