Bayer Reports Margins Drop in Q2
CHEMMONITOR.COM – In its second quarter report Bayer AG revealed significant profit margin decline over the previous periods. The reason for this lies in high sales and low net incomes. Comparing to Q2 2011, latest quarterly results stipulate revenue of EUR 10.2 B (10% up), gross profit of EUR 5.3 B (12.7% up), operating income of EUR 750 M (41.1% down), net income of EUR 494 M (33.9% down).
HealthCare segment delivered EUR 4.63 B in sales, CropScience segment comprised EUR 2.27 B of total revenue amount, MaterialScience added EUR 2.96 B.
Overall prospects for the global economic environment are clouded: while Japan and the US are recovering from hard times coupled with emerging Asian countries, European markets remain weak. Pharmaceuticals market is expected to be strong in China, India, Brazil and Russia. European development will vary from region to region while USA market will be slow. The consumer care market is to grow slower than in 2011 with USA and Europe speeding down. The consumer care market, on the contrary, will accelerate in 2012 driven by strong demand for medical devices. The animal health market will also deliver robust growth. Seed and crop protection market will remain steady while materialScience will be suppressed by European crisis, and demand from emerging countries will not be able to offset the negative impact.
Founded in 1863 and headquartered in Leverkusen (Germany), Bayer AG is a holding company with Bayer CropScience AG, Bayer HealthCare AG, Bayer MaterialScience AG, Bayer Chemicals AG and three service companies under control. Healthcare segment includes subdivisions of pharmaceuticals, cardiovascular health and women’s health preparations, specialty medicine; and health care, including consumer care and animal health sector. CropScience segment specializes in various preparations for crop protection and non-agricultural pest and weed control. MaterialScience segment concentrates on high-performance and innovative materials in coatings, adhesives, polyurethanes, polycarbonates, specialty chemicals and etc. Bayer trades on Xetra under the ticker BAYGn.