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Bayer CropScience sales up 6% in Q1 2013qrcode

Apr. 30, 2013

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Apr. 30, 2013

Bayer CropScience’s sales increased by 5.9% to €2,764 million in the first quarter of 2013 ended on Mar 31 despite a late start to the season in the northern hemisphere. Growth was particularly strong in North America, but the other regions also showed positive development. Bayer CropScience’s business continued to be supported by the persistently high price levels for agricultural commodities.

Sales at Crop Protection business section rose by 9.0 % to €2,111 million in the first quarter of 2013 and developed positively in all business units and regions. The steepest percentage increase occurred in SeedGrowth, Bayer’s business with seed treatment products, largely as a result of higher product sales for application in corn and soybeans in the United States. Herbicide sales increased by 11.7% to €947 million and registered double-digit growth. Fungicide sales rose by 7.8% to €597 million , which benefited particularly from sales of Bayer’s Prosaro™ product family.The insecticide sales were up by 1.8% to €342million, it also advanced, especially those of the Belt™ family.Sales of seed treatments were up by 13.1% to €225 million.

Sales of the Seeds business unit came in at the very strong level of the prior-year quarter with €489 million in sales. Bayer achieved higher sales particularly in Latin and North America, and also in Europe. By contrast, business in the Asia / Pacific region receded. The rise in sales of soybean seed did not fully offset the decline in business with cotton seed resulting from reduced cotton acreages. Sales of our vegetable seeds posted gratifying gains.

Sales of the Environmental Science business unit decreased by 12.3% in the first quarter of 2013, to €164 million. This was primarily due to the long winter in the northern hemisphere, which held back demand from both professional users and consumers.

EBIT of CropScience rose by a substantial 12.9% from €854 million in the prior-year quarter to€964 million in the first quarter of 2013. Special charges of €5 million (Q1 2012: €10 million) were incurred for restructuring at Crop Protection. EBIT before special items advanced by 12.2% to €969 million and EBITDA before special items by 9.9% to €1,081 million, mainly as a result of price increases and higher volumes.

Bayer CropScience’s Sales Results by category (€ million)
Q1 ended Mar. 31
Q1 2012
Q1 2013
% change
Herbicides
848
947
+11.7
Fungicides
554
597
+7.8
Insecticides
336
342
+1.8
SeedGrowth1
199
225
+13.1
Crop Protection
1,937
2,111
+ 9.0
Seeds2
486
489
+0.6
Environmental Science
187
164
12.3
EBITDA3
975
1,077
+ 10.5
EBIT4
854
964
+ 12.9
Total
2,610
2,764
+ 5.9
1 the “Seed Treatment” business unit was renamed to “SeedGrowth.”
2 In September 2012 the company renamed the “BioScience” business unit within the CropScience segment to “Seeds.”
3 earnings before interest, tax, depreciation and amortisation;
4 earnings before interest and tax.

Regional sales of Crop Protection

Agrochemical sales in Europe rose by 4.5% to €940 million, mainly due to higher sales of fungicides in France and Ukraine. SeedGrowth sales also increased, driven by the positive development of our products for oilseed rape seed in Germany. European sales in the Insecticides and Herbicides units came in level with the prior-year period despite unfavorable weather conditions.

Sales in North America climbed by 28.2% to €550 million in the first quarter of 2013. Bayer considerably grew the business particularly in the United States, mainly through higher sales of corn herbicides. Sales were also successful in Canada, where apart from strong growth in Fungicides, the Herbicides and SeedGrowth businesses also developed very positively.

Sales in the Asia / Pacific region grew by 8.1% to €303 million. Here the increase was largely attributable to a sales increase in the Herbicides unit, especially for products used on rice and plantation crops. Sales improved markedly in India, China and Japan. Business in Australia was down against the strong prior-year quarter, which featured the launch of our Sakura™ herbicide for control of grass weeds.

Sales in the Latin America / Africa / Middle East region moved forward by 6.9% year on year to €318 million driven by growth in Latin America, especially Brazil. The Fungicides and Insecticides units turned in particularly strong performances, especially with products for soybeans. Sales in Argentina declined, mainly as a result of adverse weather conditions. Business in Africa was in line with the prior-year quarter, while sales in the Middle East were lower.

Outlook

Bayer expects that business growth will outpace the market, with sales advancing by a high-single-digit percentage on a currency- and portfolio-adjusted basis toward €9 billion. Bayer also plans to raise EBITDA before special items by a high-single-digit percentage

 

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