Bayer's 4th-qtr 2007 profit plummets 76% to 67M euros, well below analyst expectations

Germany's Bayer AG's fourth-quarter profit plummeted 78% on the comparable period last year, to 67.0 million euros ($99.3 million), as the like, 2006 period was artificially boosted by a one-time gain of 236.0 million euros from the sale of the group's interest in GE Bayer Silicones, as well as exceptional tax income of 203.0 million euros.

Profit at Germany's largest drugmaker was well below expectations. A consensus estimate from a poll of analysts conducted by Dow Jones Newswires projected 211.0 million euros and, on the day of the news, February 28, shares in the Leverkusen-based firm fell 2.8% to 52.55 euros.

During the period, sales totaled 8.04 billion euros, representing a year-on-year increase of 4.6% on a currency- and portfolio-adjusted basis, as earnings before interest, tax, depreciation, amortization and special items rose 13% to 1.42 billion euros, while EBIT before special items increased 24.4% to 774.0 million euros. "We have now posted year-on-year improvements in underlying earnings in 20 consecutive quarters," said company chairman Werner Wenning. "I would like to stress that all three subgroups contributed to the improvement in performance," he added.