Bayer beats forecasts, helped by a tax gain, and leads markets higher

German drugs and chemicals major Bayer AG pleased markets with its third-quarter 2007 results, which were boosted by a one-time tax gain of around $1.9 billion, with earnings before interest and tax rising 23.9% to 953.0 million euros ($1.38 billion). The figures beat consensus forecasts and sent the firm's share price as much as 1.9% higher on the morning of the announcement, November 6, and also lifted European stock markets.

Group sales for the three months rose 4.5% to 7.79 billion euros, with EBIT/depreciation and amortization up 6.9% to 1.56 billion euros and all operating divisions contributing, said management board chairman Werner Wenning at the firm's fall financial news conference at its headquarters in Leverkusen. He also forecast that full-year turnover would be more than 32.0 billion euros, an increase of around 6% on 2006, after adjusting for portfolio and currency effects. Bayer had previously projected a 5% rise and it now expects to raise the group's EBITDA margin - before special items - at least one percentage point on the 19.3% recorded in 2006.

Health care EBITDA rockets 48%