October 31, 2012
Bayer''s upward trend continues in Q3 2012
Press release
Bayer''s upward trend at HealthCare and CropScience continues in the third quarter of 2012 with sales increased by 11.5% to EUR9.665 billion (US$12.5 billion), earnings before interest and tax (EBIT) of EUR838 million (US$1.1 billion).
The Bayer Group remains on a path of growth. "The upward trend in our life science businesses - HealthCare and CropScience - continued in the third quarter of 2012," Management Board Chairman Marijn Dekkers said Tuesday (Oct.30) following the publication of the interim report.
HealthCare, particularly the Pharmaceuticals business, gained further growth momentum. At CropScience, the strong business development seen in the first half of the year continued unabated, and MaterialScience also registered good quarterly sales. However, net income was down on-year due to special charges - particularly for legal claims and restructuring. Bayer also made good progress from a strategic perspective in the third quarter, Dekkers explained. He said the company had strengthened its life science businesses through acquisitions and also made further progress with its innovation pipeline. "We remain on a successful path, and we confirm our guidance for 2012."
Sales of the Bayer Group advanced by 11.5% in the third quarter, to EUR9.665 billion (US$12.5 billion) compared to same period in 2011 at EUR8.670 billion (US$11.2 billion). The currency- and portfolio-adjusted increase was 5.5%. Earnings before interest and taxes (EBIT) fell by 23.7% to EUR838 million (US$1.1 billion) as compared to third quarter of 2011 at EUR1.099 billion (US$1.4 billion).
"Our agricultural business maintained nearly the same momentum as in the first half," said Dekkers. The CropScience subgroup raised sales by 19.0% to EUR1.641 billion (US$2.1 billion) compared to third quarter of 2011 at EUR1.379 billion (US$1.8 billion). Sales growth was especially brisk in Europe and North America, but business also expanded by a double-digit percentage in Latin America/Africa/Middle East. Business was supported by the positive market conditions, with continuing high prices for agricultural commodities.
The Crop Protection business developed positively in all product groups and regions. SeedGrowth - the business with seed treatment products - showed a particularly strong increase of 23.7%. The fungicides business also developed very successfully. Insecticides sales also advanced by a substantial 7.5%, while sales of herbicides increased by 4.3%.
The seeds business expanded by a substantial 39.1% which was driven by sales in North America, especially of rapeseed. Sales of vegetable seeds were level with the previous year. Sales of the Environmental Science business unit rose by 8.8%.
In the CropScience business, Bayer believes that products with estimated launch dates between 2011 and 2016 have a combined peak sales potential of more than EUR4 billion (US$5.2 billion). Included here are eight projects in the Crop Protection unit and some 18 projects in Seeds for the broad-acre crops of cotton, rapeseed, rice, wheat and soy alone.