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[March 2005]
Significant Improvements at Bayer
The Bayer Group (Leverkusen, Germany) significantly improved both sales and earnings in fiscal 2004. Provisional and as yet unaudited figures show that sales grew by 4.2% to 29.758 billion. Adjusted for the effects of currency translations and portfolio changes, sales rose by 9.1%. The operating result (EBIT) before special items increased by 53.1% to 2.244 billion against 1.466 billion in fiscal 2003.
"This improvement in our operating performance is very gratifying. We have exceeded our sales and earnings targets and successfully realigned our company," said CEO Werner Wenning. Contributing factors, apart from a marked upturn in business, were the company's efforts to reduce costs and increase efficiency. Bayer was thus able to more than offset the sharp rise in raw material prices, negative currency effects and expiration of the US Patent for Cipro.
EBIT after special items improved to plus 1.808 billion from minus 1.119 billion in 2003. EBITDA rose by 14.2% to 4.13 billion. Before special items, EBITDA increased by 9.1% to 4.494 billion. Net income came to plus 603 million compared to minus 1.361 billion in 2003. Gross cash flow increased by 12.1% to 3.210 billion.
Bayer said that in order to ensure that shareholders participate in this success, a dividend for fiscal 2004 of 0.55 per share would be recommended to the Annual Stockholders' Meeting, subject to the approval of the Supervisory Board. The dividend yield calculated on the year-end share price would come to 2.2%. In proposing this dividend increase, the Management Board said it was underscoring its confidence in the future earning power of the new Bayer Group.
ENDS