Bayer's 2nd-qtr 2010 profits dip 1.3% on charges and write down, despite 14.6% revenue hike

Germany's Bayer AG saw second-quarter net earnings slip 1.3% to 525 million euros ($672.9 million), as a stronger revenue was offset by one-time charges for law suits and a write down on cancer drug Zevalin (ibritumomab tiuxetan). EBITDA before special items was up 8.6% to 1.92 billion euros and core earnings per share increased 9.5% to 1.15 euros. The firm's shares price rose 0.8% to 44.55 euros in morning trading yesterday after the figures were announced,

The maker of pharmaceuticals, specialty plastics and farm products saw revenues for the quarter rise 14.6% to 9.18 billion euros, fueled by growth in the consumer health business (up 6.4% to 4.31 billion euros) and its materials sciences division, which jumped 46.9% to 2.69 billion euros. Bayer's shares scarcely moved on the news, moving an initial 0.8% higher but closing just 0.1% lower yesterday at 44.14 euros, although the stock is down 21% so far this year.

Bayer chairman Werner Wenning said that the company will increase its investment for the future more substantially than planned. 'We now expect research and development expenses for the full year to come in at a record level of some 3.1 billion euros. In this way we are supporting our successful pharmaceutical research and development pipeline ' and underscoring our position as the leading research-based pharmaceutical and chemical company in Germany.' Previously the company had planned to raise R&D spending in 2010 to approximately 2.9 billion, euros, compared to 2.75 billion euros in the previous year.