Bayer back on stream with EBIT up 56%, but antitrust costs hit and net falls 32%

German drugs and chemicals group Bayer AG has made a strong comeback since its problems of the past few years and, as a result of significant restructuring, the acquisition of Roche's consumer health business and the spinning out of Lanxess (Marketletters passim), has posted a 17.6% rise in group sales to 27.4 billion euros ($32.9 billion) for full-year 2005.

Group earnings before interest and tax (excluding special items) leapt 55.9% to 3.3 billion euros, while underlying EBIT Depreciation and amortization rose 21.1% to 4.65 billion euros, and the EBITDA margin was 18.6%. As a result, the company has increased its dividend for the year from 0.55 euros to 0.95 euros.

However, because of costs for antitrust cases in the USA and Europe incurred in the fourth quarter, its net profit for the last three months fell 32% to 46.0 million euros, although sales for the period were 16% higher at 7.1 billion euros. The figures came in below analysts' consensus forecasts, and Bayer's share price dropped 4.1% on the day of the announcement, March 6.