26 April 2012 07:52 [Source: ICIS news]
SINGAPORE (ICIS)--Germany’s Bayer said on Thursday its first-quarter 2012 net income grew by 53.5% year on year to €1.05bn ($1.38bn), as strong performance in its CropScience operations offset the sharp decline in its MaterialScience business’s earnings.
Bayer's sales for the first quarter increased by 6.8% year on year to €10.1bn, with earnings before interest, tax, depreciation and amortization (EBITDA) rising by 27.4% to €2.38bn, the company said in a statement.
Its earnings before interest and tax (EBIT) were up by 42.6% year on year to €1.64bn, it said.
Bayer MaterialScience said it had a 38% year-on-year decline in EBIT to €127m despite a 3.8% increase in sales, as high raw material costs pushed down earnings.
The company’s CropScience segment, on the other hand, reported an EBIT of €851m, up from €219m in the same period a year ago.
“Earnings growth – mainly the result of an early start to the season and considerably higher volumes – was also helped by efficiency improvements, successful cost management and positive currency effects,” Bayer said, adding that the subgroup also made a one-time gain of €22m from divestment and early receipt of royalty payments in the quarter.
Bayer is keeping to its full-year 2012 guidance of an increase of about 3% in currency- and portfolio-adjusted sales.
“In view of the good start to 2012, Bayer is increasingly confident for the rest of the year. Given the continuing uncertainties, however, the company is currently adhering to the guidance for the full year 2012 that it issued at the end of February,” the company said.
($1 = €0.76)
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