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FULL YEAR: BAYER'S SALES UP 1%, NET INCOME UP 32%
Source: Bayer news release

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The Bayer Group continued its successful course in 2013. "We met important business objectives in our anniversary year," said Management Board Chairman Dr. Marijn Dekkers on Friday at the Financial News Conference in Leverkusen.

There was continuing momentum in the Life Science businesses: HealthCare achieved pleasing gains with its recently launched pharmaceutical products, while CropScience was very successful in a positive market environment.

Overall, Bayer achieved its operational targets in the Life Science businesses despite substantial negative currency effects. The business of MaterialScience continued to be affected by a difficult market situation. "We are optimistic for 2014 and plan further growth in sales and earnings," Dekkers said.

Sales of the Bayer Group climbed by 1.0 percent in 2013 to EUR 40,157 million (2012: EUR 39,741 million). "This is a new record in our company's 150-year history," said the Management Board Chairman. Adjusted for currency and portfolio effects (Fx & portfolio adj.), sales grew by 5.1 percent. EBIT rose by 25.6 percent to EUR 4,934 million (2012: EUR 3,928 million).

Earnings were diminished by net special charges of EUR 839 million (2012: EUR 1,711 million). The special charges mainly included EUR 358 million in restructuring expenses and EUR 276 million in additional charges related to legal claims. EBIT before special items advanced by 2.4 percent to EUR 5,773 million (2012: EUR 5,639 million), while EBITDA before special items rose by 1.5 percent to EUR 8,401 million (2012: EUR 8,280 million).

Negative currency effects diminished Group earnings by about EUR 260 million overall. In addition, expenses for long-term stock-based compensation increased by EUR 70 million in light of the pleasing market performance of Bayer stock. Net income grew by 32.7 percent to EUR 3,189 million (2012: EUR 2,403 million), and core earnings per share advanced by 5.8 percent to EUR 5.61 (2012: EUR 5.30).

Very successful year for CropScience

Bayer succeeded in substantially growing its agricultural business in 2013 despite the late start to the season in the northern hemisphere. CropScience raised sales by 5.2 percent (Fx & portfolio adj.: 9.4 percent) to EUR 8,819 million (2012: EUR 8,383 million). "This subgroup also had a very successful year. Sales improved substantially in a positive market environment," said Dekkers.

CropScience posted the strongest growth in the Latin America/Africa/Middle East region (Fx adj. 23.6 percent), followed by Asia/Pacific at 7.9 percent (Fx adj.). Sales of the subgroup advanced by 5.0 percent in North America and 4.3 percent in Europe on a currency-adjusted basis.

In the Crop Protection business, the new products launched since 2006 contributed to a reported increase in sales of around 30 percent to more than EUR 1,510 million.

The Fungicides and Insecticides businesses were especially successful, increasing sales by 14.9 and 14.1 percent, respectively (Fx & portfolio adj.).

Herbicides and SeedGrowth (seed treatment products) posted encouraging gains of 8.3 and 7.1 percent (Fx & portfolio adj.), respectively.

Sales in the Seeds unit rose by 1.2 percent (Fx & portfolio adj.) despite reduced canola and cotton acreages in North America.

Sales in Environmental Science edged upward by 1.3 percent (Fx & portfolio adj.).

EBITDA before special items of CropScience moved ahead by 11.0 percent to EUR 2,248 million (2012: EUR 2,025 million). Earnings growth was mainly the result of significant volume increases and higher selling prices, with positive currency effects of some EUR 20 million also contributing to the increase.


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