Statements of Income
Overview of Sales, Earnings and Financial Position
Bayer Links
Jump in HealthCare sales and earnings
Bayer: excellent start to 2007
- All subgroups on course for growth – sales up 22.7 percent to €8.3 billion
- EBITDA before special items climbs 27.2 percent to €2.0 billion
- EBIT before special items moves ahead 16.8 percent to €1.4 billion
- Group net income improves from €0.6 billion to €2.8 billion
- Net debt reduced by €4.8 billion
Overview of Sales, Earnings and Financial Position
Bayer got off to an excellent start in 2007, substantially improving on its strong performance in the prior-year quarter. Sales rose by 22.7 percent to €8,335 million (Q1 2006: €6,791 million). Revenues for the first three months of 2007 include €1,410 million in sales of the acquired products of Schering, Berlin, Germany. When adjusted for the effects of exchange rate shifts and portfolio changes, sales rose by 7.5 percent, with HealthCare (+7.9 percent), CropScience (+5.9 percent) and MaterialScience (+9.4 percent) all contributing to the increase.
The Group’s EBITDA before special items advanced by 27.2 percent to €1,990 million (Q1 2006: €1,564 million). The figure for HealthCare jumped by 103.9 percent to €948 million (Q1 2006: €465 million), mainly in light of the Schering AG acquisition and a solid performance by Consumer Health. At CropScience there was a 6.0 percent improvement to €584 million (Q1 2006: €551 million), particularly as a result of higher volumes and improved cost structures. EBITDA before special items of MaterialScience fell by 24.1 percent from the high level of the prior-year quarter, to €409 million (Q1 2006: €539 million), largely due to increased raw material costs.
The Group’s EBITDA before special items advanced by 27.2 percent to €1,990 million (Q1 2006: €1,564 million). The figure for HealthCare jumped by 103.9 percent to €948 million (Q1 2006: €465 million), mainly in light of the Schering AG acquisition and a solid performance by Consumer Health. At CropScience there was a 6.0 percent improvement to €584 million (Q1 2006: €551 million), particularly as a result of higher volumes and improved cost structures. EBITDA before special items of MaterialScience fell by 24.1 percent from the high level of the prior-year quarter, to €409 million (Q1 2006: €539 million), largely due to increased raw material costs.
| Net Sales by Market |
| Operating Result (EBIT) |
EBIT before special items advanced by 16.8 percent in the first quarter of 2007, to €1,375 million (Q1 2006: €1,177 million). Earnings were diminished by special charges of €200 million (Q1 2006: €128 million). The acquisition and integration of Schering, Berlin, Germany, led to special charges of €139 million. Special charges of €61 million were incurred for restructuring at CropScience, MaterialScience and Bayer Industry Services. After special items, EBIT of the Bayer Group moved ahead by 12.0 percent to €1,175 million (Q1 2006: €1,049 million).
After a non-operating result of minus €218 million (Q1 2006: minus €210 million), pre-tax income came in at €957 million (Q1 2006: €839 million). The non-operating result contained net interest expense of €156 million (Q1 2006: €143 million). Here it should be noted that interest charges for the same period of the previous year were boosted by one-time effects, while financing costs in the first quarter of 2007 rose due to acquisitions. After tax expense of €301 million (Q1 2006: €277 million), income after taxes from continuing operations rose to €656 million (Q1 2006: €562 million).
Income after taxes from discontinued operations was €2.2 billion, including divestment gains of €2.1 billion for the Diagnostics business and €0.1 billion for H.C. Starck.
After minority stockholders’ interest, net income of the Bayer Group amounted to €2,809 million (Q1 2006: €600 million). Earnings per share came to €3.44 (Q1 2006: €0.82).
After a non-operating result of minus €218 million (Q1 2006: minus €210 million), pre-tax income came in at €957 million (Q1 2006: €839 million). The non-operating result contained net interest expense of €156 million (Q1 2006: €143 million). Here it should be noted that interest charges for the same period of the previous year were boosted by one-time effects, while financing costs in the first quarter of 2007 rose due to acquisitions. After tax expense of €301 million (Q1 2006: €277 million), income after taxes from continuing operations rose to €656 million (Q1 2006: €562 million).
Income after taxes from discontinued operations was €2.2 billion, including divestment gains of €2.1 billion for the Diagnostics business and €0.1 billion for H.C. Starck.
After minority stockholders’ interest, net income of the Bayer Group amounted to €2,809 million (Q1 2006: €600 million). Earnings per share came to €3.44 (Q1 2006: €0.82).
| Gross Cash Flow |
| Net Cash Flow |
Gross cash flow improved by 29.6 percent from the prior-year quarter, to €1,411 million (Q1 2006: €1,089 million), due to the strong growth in business and the inclusion of Schering, Berlin, Germany. Net cash flow rose by €337 million to €375 million (Q1 2006: €38 million). The total net cash flow including discontinued operations was €413 million.
Net debt declined by €4.8 billion to €12.8 billion in the first quarter of 2007, due particularly to the proceeds from the divestments of the Diagnostics business and H.C. Starck.
Provisions for pensions and other post-employment benefits declined by €0.4 billion compared with December 31, 2006, to €6.2 billion, mainly because of higher capital market interest.
Net debt declined by €4.8 billion to €12.8 billion in the first quarter of 2007, due particularly to the proceeds from the divestments of the Diagnostics business and H.C. Starck.
Provisions for pensions and other post-employment benefits declined by €0.4 billion compared with December 31, 2006, to €6.2 billion, mainly because of higher capital market interest.
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