Bayer’s EBIT before special items increases by 44 percent

Bayer made gratifying operating gains in the second quarter of 2004, posting substantial year-on-year growth in both sales and operating result (EBIT). EBIT before special items increased by 44.1 percent to EUR 660 million (2003: EUR 458 million), while sales climbed 4.5 percent to EUR 7.583 billion (EUR 7.256 billion). When adjusted for currency and portfolio effects, sales grew by 7.9 percent.

Bayer CEO Werner Wenning expressed satisfaction with the company’s performance: “The second quarter has shown that our new strategic alignment and the associated measures are bearing fruit.” In addition, the pick-up in demand for industrial products from Bayer MaterialScience and Lanxess has provided new impetus. Bayer CropScience turned in a pleasing performance, whereas Bayer HealthCare showed a decline as expected.

The Lanxess subgroup grew EBIT year on year by EUR 67 million to EUR 20 million. It also boosted sales by 9.7 percent to EUR 1.592 billion. Preparations for the stock-market listing are proceeding on schedule. Lanxess is to be separated from the Bayer Group by way of a spin-off to the company’s stockholders in early 2005. An Extraordinary Stockholders’ Meeting on November 17, 2004 will vote on this course of action.