Bayer AG 4th-qtr profits surge, boosted by health care business and Schering AG

German health care and chemicals major Bayer AG reported a particularly strong set of financial results for fourth-quarter 2006, with sales rising 25% to 7.97 billion euros ($10.51 billion), while net income leapt to 311.0 million euros, or 0.41 euros a share, from 46.0 million euros, or 0.06 euros per share in the like 2005 period, beating consensus forecasts. The news pushed the company's share price 3.2% higher to 44.12 euros on March 15, the day of the news.

For the full year, turnover advanced 17.2% to 28.96 billion euros, and net income was up 5.4% at 1.68 billion euros, the company revealed at its spring financial news conference in Leverkusen. Speaking to journalists, chief executive Werner Wenning stated: "we can undoubtedly say that 2006 has been one of the most significant years in Bayer's history," which was "marked by our acquisition of Schering AG of Berlin, Germany, for approximately 17.0 billion euros (Marketletters passim). The new Bayer Schering Pharma AG is among the world's leading suppliers of specialty pharmaceuticals."

Sales of Bayer HealthCare rose 47% to 11.7 billion euros for the year, with global turnover of pharmaceuticals leaping 84% to 7.5 billion euros. Including Schering's sales prior to the acquisition date gave Bayer Schering Pharma total pro forma revenues of more than 10.0 billion euros, said Mr Wenning, noting: "this is an impressive figure." Consumer health care sales for the year grew 14.0% to 4.25 billion euros.