Bayer posts solid 3rd-qtr 2010 results, but Pharma facing difficult environment

Sales of the German drugs and chemical group Bayer rose by 16.1% in the third quarter of 2010 to 8.58 billion euros ($11.95 billion), beating consensus forecasts of 8.29 million euros. Adjusted for currency and portfolio effects, business expanded 8.4%. Earnings before interest, taxes, depreciation and amortization (EBITDA) - before special items - improved 10.5% to 1.66 billion euros.

Core earnings per share came in at 0.95 euros, versus consensus projections of 0.92 euros. The increase was due especially to the sharp rise in earnings at MaterialScience and also to positive currency effects. The operating result (EBIT) before special items increased 18.5% to 992 million euros.

Bayer says it remains optimistic for 2010 and confirms its full-year forecast for the group. The company continues to target currency- and portfolio-adjusted sales growth of over 5%, aiming to increase EBITDA before special items to more than 7 billion euros. Core earnings per share are still expected to improve by more than 15%. The company’s expectations are based on the exchange rates prevailing at the end of the third quarter of 2010.