Bayer 2012 sales hit record, but profits hit by litigation costs

Group targets at German drug, crop sciences and chemical major Bayer (BAYN: DE) were achieved in 2012, with sales and earnings before special items increase in all subgroups. Sales increase by 8.8% to 39.76 billion euros ($52.33 billion). New products, particularly in the pharmaceutical sector, are creating optimism, noted the company, whose shares rose 2.7% to 75.86 euros yesterday after the release if its financial results.

Earnings before interest and taxes fell 4.6% to 3.96 billion euros and net income dipped 1% to 1.45 billion 2,446 million. Bayer said that it health care unit took a charge of 1.2 billion euros related to claims in the USA concerning its oral contraceptives YAZ and  Yasmin (ethinyl estradiol and drospirenone), mainly in the form of measures for settlements of alleged venous clot injury cases of which the company is currently aware and anticipated future cases.