Strong Growth in Life Sciences in 2Q 2013

The Bayer Group achieved strong growth in its Life Sciences businesses in the second quarter of 2013.

“At HealthCare, the launches of new pharmaceutical products are progressing considerably better than expected. And CropScience maintained its gratifying business development in a positive market environment,” explained Management Board chairman Dr. Marijn Dekkers at the presentation of the interim report for the second quarter. By contrast, sales at MaterialScience were slightly down from the prior-year period in a difficult market environment. Earnings of this subgroup were held back by lower selling prices and higher raw material costs.

“We are currently maintaining our forecast for 2013, even if this appears increasingly ambitious,” said Dekkers.

Sales of the Bayer Group advanced by 1.9% in the second quarter to €10,360 million (Q2 2012: €10,166 million). The currency- and portfolio-adjusted increase was 4.6%. EBIT of the Bayer Group posted a clear 73.9% improvement to €1,287 million (Q2 2012: €740 million) due to lower net special items, which amounted to minus €256 million (Q2 2012: minus €762 million). EBIT before special items was up 2.7% at €1,543 million (Q2 2012: €1,502 million), while EBITDA before special items posted a 1.2% increase to €2,195 million (Q2 2012: €2,169 million). Net income advanced by 74.8% to €841 million (Q2 2012: €481 million), and core earnings per share by 6.2% to €1.54 (Q2 2012: €1.45).

Sales of the high-tech materials business (MaterialScience) came in 2.7% below the prior-year quarter at €2,875 million (Q2 2012: €2,954 million).

“The market environment for MaterialScience remained difficult in the second quarter,” explained Dekkers, pointing to lower selling prices in Asia/Pacific and Europe. Volumes matched the prior-year period, with increases in North America offsetting declines in Latin America/Africa/Middle East and Europe.

EBITDA before special items of MaterialScience fell by 28.5% to €274 million (Q2 2012: €383 million), largely because of a decline in selling prices and an increase in raw material costs. Polycarbonates showed particularly weak earnings development. However, EBITDA before special items of the subgroup improved substantially compared to the first quarter of 2013.