Leverkusen, Germany -- Chemicals giant Bayer said it "remains on a path of growth" as sales increased 11.5 percent in the third quarter this year compared to the same period in 2011.
"MaterialScience achieved good quarterly sales and an increase in volumes, although earning power weakened during the quarter," said chairman Dr Marijn Dekkers. "Higher raw material and energy costs were only partially offset by volume growth, savings from our efficiency programs and positive currency effects."
Business in raw materials for foams (polyurethanes) increased by 10.2 percent, driven mainly by higher volumes in all product groups and regions and by price increases in all regions except North America. However, the high-tech plastics business (polycarbonates) shrank by 10.5 percent.
The group's total sales in Q3 were Euro 9.7 billion ($12.6 billion), an increase of 11.5 percent or 5.5 percent when accounting for currency and portfolio adjustments. Earnings (Ebit before special items) increased by 1.7 percent to Euro 1.19 billion. Ebitda before special items was up 2.2 percent to Euro 1.85 billion.
In a conference call Dekkers said the company was particularly pleased with a continuing upward trend in the Life Science business and positive development at HealthCare, driven by increased growth momentum in Pharmaceuticals. And the CropScience business continued to expand, with growth in double digits.
Results from the MaterialScience division were a mixed bag, Dekkers noted, with sales up 5.5 percent compared with Q3 2011 at Euro 9.7 billion, but Ebit down by almost 24 percent to Euro 0.8 billion.
Overall, however, Bayer performed successfully in the third quarter, said Dekkers, so is still expecting a currency- and portfolio-adjusted sales increase in 2012 of 4-5 percent compared to 2011. That would result in group sales of about Euro 39-40 billion.