First-quarter earnings before interest and tax increased 38% in the material science division

First-quarter earnings before interest and tax increased 38% in the material science division

Bayer’s plastics-related businesses have posted higher profits for the first quarter of this year. The group’s material science division – which includes polycarbonates, TPU and polyurethane – increased its earnings before interest and tax by 38% to E135m. This came despite only a 0.5% growth in sales, to E1.877bn.

The main reasons for the strong earnings improvement were higher capacity utilisation and better margins in the polyurethane business, Bayer said. Sales of polyurethane grew by 3.8% to E820m, though polycarbonate sales were flat at E430m.

Sales in Lanxess, the chemicals division that Bayer intends to sell at a later date, declined by 2% to E1.478bn. However, performance plastics showed a 14% rise, to E344m, due to higher volumes in the ABS business. Overall, Bayer’s sales advanced only marginally, to E7.362bn. The strength of the euro pulled down sales by nearly 9%, said the company. Despite the flat results, the group expects to improve EBIT by more than 10% in 2004.