German pharmaceutical giant Bayer said yesterday it suffered a surprise fourth-quarter loss owing to charges that included a write-down on its Schering brand and costs of US legal proceedings.
Bayer posted a fourth--quarter net loss of 145 million euros (US$200 million), compared with a profit of 153 million euros in the same period of 2009, a statement said.
FORECASTS
Analysts polled by Dow Jones Newswires had forecast a fourth-quarter net profit of 159 million euros.
Core earnings before interest, taxes, depreciation and amortization (EBITDA) before special items in the quarter gained 11.6 percent on the year to 1.69 billion euros, a sign the group was still profitable.
That result exceeded analyst forecasts for 1.67 billion euros.
ASPIRIN MAKER
For all of last year, the maker of Aspirin made a net profit of 1.3 billion euros, down from 1.36 billion after exceptional charges of 1.72 billion euros and despite a 12.6 percent gain in sales to a record 35.1 billion euros.
The charges included a write-down of 405 million euros to wind down the group’s Schering brand and 526 million euros stemming from US legal costs and settlements following lawsuits targeting Bayer’s genetically modified rice.
Operating profit before special items gained 18 percent to 4.45 billion euros and last year’s EBITDA was 9.7 percent higher at 7.1 billion euros.
MATERIALSCIENCE
Bayer said earnings at its -MaterialScience unit tripled as the global economic rebound boosted demand for construction materials but sales at its HealthCare division were “held back by generic competition and health system reforms.”
The group’s third main division, CropScience, suffered from a contracting market for conventional crop protection products, Bayer said.
For next year, it forecast sales growth of between 4 percent and 6 percent to 35-36 billion euros, assuming the global economy continues to expand, and EBITDA before special items of around 7.5 billion euros.
RECORD
Research investment should match the record level for last year of about 3.1 billion euros.
“We are confident for this year, which has gotten off to a successful start,” chairman Marijn Dekkers said in the statement.
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