By Christopher Alessi
LEVERKUSEN, Germany-- Bayer AG on Thursday posted a 51% drop in
net profit for the fourth quarter of 2014, weighed down by higher
research and development and selling costs.
The German pharmaceutical group said net profit for the
three-month period ended Dec. 31 was EUR224 million ($254 million),
compared with EUR455 million a year earlier, missing analysts'
expectations. Analysts had predicted net profit to rise to EUR483
million, according to a poll by The Wall Street Journal.
Earnings before interest, taxes, depreciation and amortization
before special items rose 4.4%, to EUR1.85 billion, a result of
higher volumes in all business areas. Sales increased 12% to
EUR11.04 billion, helped by a weaker euro and the consolidation of
U.S.-based Merck & Co.'s over-the-counter business, which Bayer
acquired for $14.2 billion last year.
At EUR42.24 billion, total sales for 2014 met Bayer's updated
sales guidance of EUR42 billion. The company's five most recently
launched drugs--Xarelto; eye treatment Eylea; cancer drugs Stivarga
and Xofigo; and pulmonary hypertension drug Adempas--contributed
EUR2.9 billion in sales for last year, slightly ahead of the
company's forecasts.
Late Wednesday, the company said it would pay a dividend of
EUR2.25 a share for 2014, compared with EUR2.10 in 2013.
Bayer said it expects approximate sales of EUR46 billion 2015,
helped by favorable foreign-exchange conditions. It predicted its
new drugs would contribute close to EUR4 billion in sales for this
year.
Write to Christopher Alessi at christopher.alessi@wsj.com
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