Leverkusen, Germany - Bayer AG has reported a 76-percent drop in net income to Euro 277 million ($356 million) in the third quarter of 2008, from Euro 1175 million in Q3 2007 because of higher costs for energy and raw materials, the company said 28 Oct.
The Bayer MaterialScience polyurethane business experienced an improvement in sales of TDI (toluene diisocyanate) but sales of MDI (methylene diphenyl diisocyanate) decreased slightly. In the materials segment the Thermoplastic Polyurethanes business expanded by an adjusted 2.9 percent but overall segment sales fell by an adjusted 8.9 percent to Euro 699 million. Sales in the systems segment held steady at Euro 1850 million.
Total sales for the Bayer MaterialScience business in Q3 2008 were down 2.9 percent to Euro 2549 million, compared with the same period last year. According to Bayer, business remained at the previous year's level once adjusted for portfolio and currency effects. "Here the decline in volumes was almost completely offset by higher selling prices. Business in North America was impacted by Hurricane Ike," the company said.
"Selling price increases and cost savings from our restructuring program only partly offset these effects," said chairman Werner Wenning.