Bayer results boosted by Schering business

Bayer's recent Schering acquisition helped the multinational's third quarter sales rise by 26% to Euro 7,783 million, compared with Euro 6,177m in 2005. Earnings before interest, taxes, depreciation and amortization (EBITDA) were up by 38.5% to Euro 1,505m, the company said.

Bayer Group sales for the full year are expected to be in the region of Euro 30bn, including roughly Euro 3.0bn in revenues from the Schering business since June 23.

The Schering business contributed Euro 1,410m to the group's sales in the third quarter. When adjusted for currency and portfolio effects, Group sales moved ahead by 6.4% with expansion in MaterialScience and HealthCare, while CropScience sales declined, as had been forecast.

The sales drivers in the Bayer HealthCare group were the treatment for hemophilia, Kogenate, as well as key Primary Care products and its Oncology business. The Schering business also performed well, with growth driven primarily by the Yasmin product family and the multiple sclerosis treatment Betaferon/Betaseron. In the Consumer Health segment, comprising the Consumer Care, Diabetes Care and Animal Health divisions, business improved by 4.8 % to Euro 1,038m.

Net debt decreased to Euro 19,021m and Bayer chairman Werner Wenning predicted a further substantial reduction: 'The divestiture of H.C. Starck to financial investors Advent International and The Carlyle Group, which we announced last week, will bring down net debt by about another Euro 1bn.' He added that the proceeds from the divestitures of the Diagnostics business and of Wolff Walsrode would lead to further reductions.

Bayer's consolidation of research activities is expected to be largely complete by the end of the first half of 2007 that will result in the loss of approximately 600 US jobs, primarily in research.