Bayer Q3 net slips on fertilizers

German drugs and chemicals maker Bayer AG yesterday reported a 10 percent drop in third-quarter net income as strong sales in healthcare and pharmaceuticals were offset by weaker demand for fertilizers and materials.

Bayer, based in Leverkusen, said net income fell to 249 million euros ($374 million) in the July-September period from 277 million euros in the third quarter of 2008.

Revenue for the period was 7 percent lower at 7.4 billion euros compared with 8 billion euros in the third quarter of 2008.

"Our previous prediction has proven justified: the global economy seems to have passed the bottom of the cycle," Werner Wenning, Bayer's chief executive said in the company's report.

"We expect this trend to continue through the end of the year."

However, he said it is still too early to speak of a self-sustaining upswing in industry.

The healthcare business showed a revenue increase of 4 percent to 4 billion euros, with all segments contributing to the gain, the company said.

The pharmaceutical business, which is part of health care, saw a 3 percent rise in revenue to nearly 3 billion euros, with strong performances in Asia and Latin America.

Top selling drugs included Aspirin Cardio, a drug to prevent heart attacks, which saw revenue improve by 15 percent. Revenue for Kogenta, a hemophilia treatment, rose 3.4 percent.

Revenue in the consumer health care segment rose 5 percent to 1.4 billion euros. Nonprescription drug sales were boosted by gains of 23 percent and 9 percent for the pain reliever Aleve-Naproxen and the skin care products Bepanthen-Bepanthol.

The top-selling product of the medical care division, which is part of consumer healthcare, was the Contour line of blood glucose meters, with a revenue gain of 15 percent.

The material science division however, reported a 20 percent decline in revenue to 2 billion euros. The company said it saw a distinct drop in selling prices and volumes. Products including polyurethanes, plastics, coatings and adhesives all saw double-digit revenue decline.

The company has said in the past it has been affected by the slowdown in demand from the auto industry, for example.

Bayer's crop science division, meanwhile, reported a 9 percent decline in revenue to 1.1 billion euros. Crop protection revenues fell 9 percent, while the environmental science - bio science segment saw a 8 percent drop.

"The market environment for Bayer Crop Science was marred by lower prices for key crop commodities, adverse weather conditions and higher trade inventories of crop protection products," Wenning said.

The company said crop science revenue growth in Latin America was not sufficient to offset a considerable drop in business in Europe and North America.

Shares of Bayer were up slightly at 47.82 euros in Frankfurt morning trading.

Source:China Daily