By Neetha Mahadevan
FRANKFURT--Germany's Bayer AG (BAYN.XE) on Thursday raised its
full-year sales forecast despite a decline in first-quarter net
profit that was largely due to higher research-and-development
expenses and integration costs.
Net profit for the quarter ended March 31 fell 8.4% on the year
to 1.30 billion euros ($1.45 billion), compared with EUR1.42
billion a year earlier, slightly missing analyst expectations of
EUR1.36 billion. Earnings were held back by special charges of
EUR244 million for the consolidation of the recently acquired
over-the-counter business of Merck & Co. (MRK) and additional
efficiency measures. Positive currency effects buoyed earnings by
about EUR50 million
Earnings before interest, taxes, depreciation and amortization
before special items--a figure watched closely by analysts--rose
9.6% to EUR3 billion from EUR2.74 billion a year earlier. Sales
jumped 15% to EUR12.12 billion from EUR10.56 billion.
For the full year, the company now expects sales of EUR48
billion to EUR49 billion compared with its previously forecast
EUR46 billion, helped by favorable foreign-exchange conditions.
Ebitda before special items is predicted to increase by a high-teen
percentage compared with its previous forecast of a low- to
mid-teen-percentage increase.
Write to Neetha Mahadevan at neetha.mahadevan@wsj.com
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