Bayer Raises Full-Year Sales Expectations Despite Fall in 1Q Profit

   By Neetha Mahadevan 
 

FRANKFURT--Germany's Bayer AG (BAYN.XE) on Thursday raised its full-year sales forecast despite a decline in first-quarter net profit that was largely due to higher research-and-development expenses and integration costs.

Net profit for the quarter ended March 31 fell 8.4% on the year to 1.30 billion euros ($1.45 billion), compared with EUR1.42 billion a year earlier, slightly missing analyst expectations of EUR1.36 billion. Earnings were held back by special charges of EUR244 million for the consolidation of the recently acquired over-the-counter business of Merck & Co. (MRK) and additional efficiency measures. Positive currency effects buoyed earnings by about EUR50 million

Earnings before interest, taxes, depreciation and amortization before special items--a figure watched closely by analysts--rose 9.6% to EUR3 billion from EUR2.74 billion a year earlier. Sales jumped 15% to EUR12.12 billion from EUR10.56 billion.

For the full year, the company now expects sales of EUR48 billion to EUR49 billion compared with its previously forecast EUR46 billion, helped by favorable foreign-exchange conditions. Ebitda before special items is predicted to increase by a high-teen percentage compared with its previous forecast of a low- to mid-teen-percentage increase.

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