Germany’s Bayer swings to €397m net profit, €9.2bn sales in Q4

28 February 2012 07:33  [Source: ICIS news]

SINGAPORE (ICIS)--Bayer has reported a net profit of €397m ($529m) and a 2% year-on-year rise in sales to €9.2bn for the fourth quarter of 2011, the German chemical producer said on Tuesday.

It posted a net loss of €145m in the same period a year earlier, Bayer said in a statement.

However, earnings before interest, tax, depreciation and amortisation (EBITDA) decreased by 6.3% to €1.4bn compared with the same period in 2010 because of a decline in earnings from its MaterialScience segment, it said.

“Overall business development in the fourth quarter showed a mixed picture,” said Werner Baumann, the CFO of the company.

Earnings for the fourth quarter at Bayer’s Healthcare and CropScience businesses improved by 12.7% and 2.9%, respectively. However, earnings at its MaterialScience unit fell by 49.5%, caused primarily by higher raw material costs, the company said.

The company’s net profit in 2011 grew by 89.9% year on year to €2.5bn, while sales rose by 4.1% to €36.5bn, it said.

Earnings at its Healthcare segment in 2011 grew by 9.4% to €4.5bn, and its CropScience unit earnings surged to €1.2bn, from €767m in fiscal 2010, Bayer said.

However, its MaterialScience unit earnings fell by 10.4% to €1.2bn as a result of higher operating costs that were incurred, including those for the commissioning of a toluene di-isocyanate (TDI) plant in China, it said.

Another factor was the “higher raw material costs that could not be fully offset by selling price increases”, it added.

The group’s total EBITDA in 2011 grew by 10.1% year on year to €6.9bn, it added.

For 2012, the Bayer group anticipates sales growth of about 3% overall and sales to come in at about €37bn, it said.

“This will be driven by Healthcare and CropScience [segments], while earnings at MaterialScience are likely to be flat with 2011 in view of the currently difficult market conditions,” it added.

($1 = €0.75)

By: Samuel Wong

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