Bayer Group reaps 'successful' fiscal year in 2012

Business with raw materials for foams (Polyurethanes) improved by 7.9 percent (Fx& portfolio adj.). Contributing to this increase were higher volumes and prices in all product groups and regions. By contrast, high-tech plastics (Polycarbonates) declined by 7.1 percent (Fx& portfolio adj.) due to lower selling prices that resulted primarily from new production capacities on the world market. However, volumes as a whole were level year on year. Sales in the Coatings, Adhesives, Specialties business unit moved forward by 3.5 percent (Fx& portfolio adj.) as a result of the higher volumes and prices achieved in nearly all regions.

EBITDA before special items of MaterialScience advanced by 6.8 percent to 1,251 million euros (2011: 1,171 million euros). This increase was mainly the result of higher volumes, savings achieved from efficiency improvement measures and positive currency effects. By contrast, earnings were diminished by higher raw material and energy costs.

Bayer very successful operationally in the fourth quarter of 2012

"Operationally, Bayer had a very successful fourth quarter overall," said CFO Werner Baumann. Between October and December, Group sales advanced by 7.3 percent (Fx and portfolio adj. 5.5 percent) to 9,862 million euros (Q4 2011: 9,191 million euros). All three subgroups contributed to this expansion, and especially CropScience. EBIT climbed by 16.9 percent to 735 million euros (Q4 2011: 629 million euros), while EBITDA before special items moved ahead by 18.4 percent to 1,825 million euros (Q4 2011: 1,541 million euros). Net income amounted to 374 million euros (Q4 2011: 397 million euros), and core earnings per share were 1.0 euro (2011: 0.97 euro).

Bright prospects for 2013

"Last year's results were pleasing, and we are also optimistic for 2013," said Dekkers. For 2013, Bayer anticipates currency- and portfolio-adjusted sales growth of between 4 and 5 percent. This corresponds to Group sales of around 41 billion euros. The group plans to increase EBITDA before special items by a mid-single-digit percentage and core earnings per share by a high-single-digit percentage.

Bayer expects to increase spending for research and development to around 3.2 billion euros (2012: 3 billion euros). The company has planned capital expenditures of 1.9 billion euros (2012: 1.6 billion euros) for property, plant and equipment and 0.4 billion euros (2012: 0.4 billion euros) for intangible assets. Depreciation and amortization are expected to total about 2.6 billion euros. As regards Bayer's financial position, the company anticipates that net financial debt will total less than 7 billion euros at the end of 2013.

HealthCare's ongoing priority for 2013 is to successfully commercialize the new pharmaceutical products. The subgroup expects sales to advance by a mid-single-digit percentage on a currency- and portfolio-adjusted basis to approximately 19 billion euros, with an increase in EBITDA before special items. Earnings growth is likely to be restrained by negative currency effects and higher marketing expenses for the launch of new products. HealthCare aims to slightly improve the EBITDA margin before special items.

In the Pharmaceuticals segment, sales are expected to move ahead in 2013 by a mid-single-digit percentage on a currency- and portfolio-adjusted basis to about 11 billion euros. That segment plans to increase EBITDA before special items and slightly improve the EBITDA margin before special items. HealthCare predicts that sales of the Consumer Health segment will grow by a mid-single-digit percentage on a currency- and portfolio-adjusted basis to around 8 billion euros. In addition, the company expects EBITDA before special items of the segment to increase and the EBITDA margin before special items to be level with the prior year.

CropScience predicts continued favorable market conditions for 2013. The subgroup expects business growth to outpace the market, with sales advancing by a high-single-digit percentage on a currency- and portfolio-adjusted basis toward 9 billion euros. CropScience also plans to raise EBITDA before special items by a high-single-digit percentage.

For 2013 MaterialScience is planning a slight increase in sales on a currency- and portfolio-adjusted basis to about 12 billion euros. That subgroup intends to further improve EBITDA before special items. For the first quarter of 2013, MaterialScience anticipates a currency- and portfolio-adjusted sales increase compared to the preceding quarter. The subgroup expects EBITDA before special items to come in at the level of the preceding quarter.

Life-science businesses achieve important progress in their pipeline

In the life-science businesses, Bayer made further, very significant progress with the development candidates in its pipeline, Dekkers explained. "We continued to strengthen our position as a world-class innovation company, improving many people's lives with innovative products and solutions," emphasized the management board chairman. "In particular, we received many marketing authorizations for our new products."