Bayer Highlights Strong Year

https://www.chemnet.com   Apr 16,2010

　　According to the Bayer Group, 2009 was operationally one of its strongest years. "We were successful in a difficult environment, and we are optimistic for the future," says Werner Wenning, chairman of the board of management, at a recent financial conference at the company's headquarters in Leverkusen, Germany. Earnings before interest, taxes, depreciation and amortization (EBITDA) before special items came in at EUR 6.5 billion (US$8.7 billion), the third-highest level in Bayer's history. Net cash flow climbed by 49% to a record EUR 5.4 billion. Wenning expects sales and earnings to rise in 2010.

　　"We came close to reaching our ambitious goal of limiting the decline in earnings against the record 2008 level to approximately 5%," explains Wenning.

　　Wenning also addressed the high-tech materials business in 2009. Sales of MaterialScience receded by 22.8%. This decline was due almost equally to lower selling prices and a drop in volumes. "Whereas sales throughout the world fell sharply at the beginning of 2009, business recovered markedly as the year progressed," Wenning pointed out.

　　After a very weak first quarter, the earnings situation at MaterialScience also improved. Contributory factors here were said to be lower raw material and energy costs and the savings resulting from the restructuring program initiated in 2007. However, EBITDA before special items for the full year was down substantially, dropping to EUR 446 million from EUR 1,088 million in the previous year.

　　"To safeguard our long-term growth, we are planning capital expenditures of EUR 1.4 billion. A budget of EUR 2.9 billion has again been set aside for research and development," says Wenning.

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