Bayer raises sales forecast after strong quarter

Chemical giant Bayer has raised its estimated sales increase for 2012 to 4-5% after strong sales during Q2, including the highest ever quarterly sales for its Bayer MaterialScience (BMS) division.

Overall sales went up 10% to €10.2bn and Ebitda rose 6.7& to €2.2bn. Positive currency effects contributed around €70m to this figure, says Bayer.

BMS business grew 7.5%, with growth in polyurethanes offsetting a decline of 10.2% in polycarbonates. The company increased prices in the Latin America/Africa/Middle East, North America and Europe regions to offset declines in Asia Pacific.

Net sales in this division increased 6.5% to €3bn and Ebitda before special items grew 3.5% to €385m, largely because of price increases, says the company.

By contrast, higher raw material costs had a negative impact on earnings.

For the first half of the year, Bayer’s overall sales climbed by 8.4% to €20.2bn and “we achieved a gratifying improvement in sales and earnings before special items in the first half of 2012, with CropScience making a particularly substantial contribution”, the company said.

The emerging markets – Asia (excluding Japan), Latin America, Eastern Europe, Africa and the Middle East – showed stronger growth (a 6.4% increase in sales) compared to industrialized countries (3.6%).

The strength of the first half of the year, as well as a favourable currency environment, means Bayer has raised its expectations for the full year. The company is now anticipating a sales increase of 4-5% resulting in group sales of €39-40bn.

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