Bayer reports strong growth in Life Sciences, weak MaterialScience in 2Q

The Bayer Group achieved strong growth in its Life Sciences businesses in the second quarter of 2013. "At HealthCare, the launches of new pharmaceutical products are progressing considerably better than expected. And CropScience maintained its gratifying business development in a positive market environment," explained Management Board Chairman Dr. Marijn Dekkers at the presentation of the interim report for the second quarter.

By contrast, sales at MaterialScience were slightly down from the prior-year period in a difficult market environment. Earnings of this subgroup were held back by lower selling prices and higher raw material costs. However, the company is maintaining its forecast for 2013, even if this appears increasingly ambitious, according to Mr. Dekkers.

Sales of the Bayer Group advanced by 1.9 percent in the second quarter to EUR 10,360 million (Q2 2012: EUR 10,166 million). Gross cash flow in the second quarter moved ahead by 37.3 percent to EUR 1,680 million (Q2 2012: EUR 1,224 million); net cash flow advanced by 9.6 percent to EUR 1,536 million (Q2 2012: EUR 1,401 million). Net financial debt rose from EUR 7.5 billion on March 31, 2013, to EUR 9.0 billion on June 30, 2013. Cash inflows from operating activities only partly offset the outflows for the dividend payment and the acquisition of Conceptus.

Sales of the high-tech materials business (MaterialScience) came in 2.7 percent (Fx & portfolio adj. 1.5 percent) below the prior-year quarter at EUR 2,875 million (Q2 2012: EUR 2,954 million). "The market environment for MaterialScience remained difficult in the second quarter," explained Dekkers, pointing to lower selling prices in Asia/Pacific and Europe. Volumes matched the prior-year period, with increases in North America offsetting declines in Latin America/Africa/Middle East and Europe.

Business with foam raw materials (Polyurethanes) rose by 3.0 percent. This increase was attributable to higher volumes. Selling prices overall were at the level of the prior-year period. Sales of the high-tech plastics business (Polycarbonates) declined by 8.2 percent as a result of lower volumes due to weaker demand. In addition, selling prices as a whole were below the prior-year period on account of market overcapacities. Sales of raw materials for coatings, adhesives and specialties fell by 4.0 percent .This decline resulted from both lower selling prices and a decrease in volumes in nearly all product groups.