28 April 2011 21:11 [Source: ICIS news]
HOUSTON (ICIS)--Higher sales of polyurethanes and other products helped first-quarter earnings for Bayer’s MaterialScience business unit jump 24.1% from the same period last year, the company said on Thursday.
Bayer MaterialScience’s first-quarter earnings before interest, taxes, depreciation and amortisation (EBITDA), and before special items, climbed to €345m ($507m), the German specialty chemicals maker said.
“Earnings were supported by the expansion in volumes,” the company said. “In addition, the subgroup succeeded in nearly offsetting the considerable increase in raw material and energy costs through significantly higher selling prices for its products.”
Sales of polyurethane (PU) foam raw materials expanded year-on-year by 19.3%, polycarbonates high-performance plastics by 22.2%, and raw materials for coatings, adhesives and specialties by 9.5%, the company reported.
Looking forward, Bayer said it planned to raise its sales expectations for the remainder of the fiscal year by a high single-digit percentage, up from an earlier forecast of a mid-single digit increase.
“Bayer is adjusting its sales forecast for 2011, as it expects to be able to pass on the raw material cost increases to its customers by raising selling prices,” the company said.
Bayer Material Science is one of three major business units of the company, which also includes Bayer CropScience and Bayer Healthcare.
Bayer reported an overall first-quarter net profit of $1.0bn, up 8.4% year on year.
For more on Bayer visit ICIS company intelligence
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