Germany's Bayer Q2 net profit falls 33.9%, sales up 10%

31 July 2012 07:27  [Source: ICIS news]

SINGAPORE (ICIS)--Germany’s Bayer reported on Tuesday a 33.9% year-on-year fall in its second-quarter 2012 net income to €494m ($602m), partly on heavy provisions.

“Net income for the Bayer Group in the second quarter of 2012 was impacted by special items of €800m. This sum included risk provisions of €500m for litigations,” the company said.

The company’s total sales rose 10% year on year to a record €10.2bn, while operating profit was down by 41.1% year on year at €750m, the chemical major said in a statement.

Its overall earnings before interest, tax, depreciation and amortisation (EBITDA) fell by 18.1% year on year to €1.56bn, it said.

For the first half of 2012, Bayer’s net profit rose by 7.9% year on year to €1.54bn, with sales up by 8.4% at €20.2bn, the company said.

The company’s operating profit slipped by 1.4% year on year to €2.39bn, while EBITDA was up by 4.4% at €3.94bn, it added.

"Following the good business performance in the first half of 2012, especially at CropScience and HealthCare, we are also confident for the second half of the year," said Bayer chairman Marijn Dekkers.

“In addition, Bayer is benefiting from a very favourable currency environment. Against this background, the company is raising its sales and earnings forecast for the full year,” Dekkers said.

For the full year of 2012, the company expects a higher group sales of between €39bn-40bn, from a previous estimate of €37bn.

“Bayer anticipates further expenses of between €100m and €200m for ongoing restructuring programs in the second half of 2012,” it added.

($1 = €0.82)

By: Nurluqman Suratman

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