Strong 2nd-qtr 2011 earnings for Bayer, but sales flat

German drugs, crop sciences and material science major Bayer (BAY: DE) revealed this morning that second-quarter 2011 earnings before interest and tax (EBIT) before special items increased by 11.9% to 1.42 billion ($2.04 billion). Earnings before interest, taxes, depreciation and amortization (EBITDA) - before special items - improved 5.8% to 2.04 billion euros (Q2 2010: EUR 1,923 million). Bayer grew net income by a very substantial 40.9%, to 747 million euros. Core earnings per share rose 11.2% to 1.29 euros.

The sales performance of the Bayer group was less impressive, with second quarter turnover growing just 0.8% to 9.25 billion euros, although on a currency- and portfolio-adjusted (Fx & portfolio adj) basis the increase was 5.4%. Business performance in the emerging markets made an above-average contribution to this development, the firm said.

"We are pleased with the way our business performed," said Bayer chief executive Marijn Dekkers, noting: "We have also achieved significant progress with products from our research and development pipeline." Furthermore, he said, the efficiency-enhancing measures announced in November 2010 are being implemented as planned. Bayer’s CEO is optimistic for the current fiscal year and confirmed the sales and earnings forecast for 2011 that was raised in April.