Bayer crop protection sales up 3% in Q2 2014

Date:07-31-2014

Bayer CropScience's crop protection sales recorded a 2.9% increase to €2,010 million in the second quarter of 2014. Seeds sales boosted by 6.9% to €263 million in this quarter.

Sales of fungicides and insecticides grew by 6.5% and 4.3% to €781 million and €390 million, respectively. The sales of seed growth boosted by 6.8% to €156 million, while herbicide sales was down by 2.4% to €683 million. The new Crop Protection products launched since 2006 again contributed significantly to the positive sales development in the quarter. Business in our Seeds unit also grew substantially, largely thanks to positive development for oilseed rape / canola and cotton. Sales of rice and soybean seeds developed well, while those of vegetable seeds showed a slight decline.

Sales of Environmental Science advanced by 2.1% to €197 million. Sales of consumer products gained strongly. The business with products for professional users posted a small increase.

For the first half of 2014, the sales of crop protection increased by 4.4% to €4,241 million, and seeds sales was up 4.2% to €766 million .

EBIT of CropScience for the first half of 2014 came in level with the prior-year period at €1,458 million. EBITDA before special items also came in level with the prior-year period at €1,713 million (+0.5%) despite negative currency effects of about €100 million. Volumes were up and selling prices moved higher, while selling and R&D expenses increased.

Bayer CropScience’s Sales Results (€ million)
Q2 ended Jun. 30	Q2 2014	Q2 2013	% Change	First half 2014	First half 2013	% Change
Crop Protection	2,010	1,953	+2.9	4,241	4,064	+4.4
Herbicides	683	700	-2.4	1,648	1,647	+0.1
Fungicides	781	733	+6.5	1,443	1,330	+8.5
Insecticides	390	374	+4.3	742	716	+3.6
Seed Growth	156	146	+6.8	408	371	+10
Seeds	263	246	+6.9	766	735	+4.2
Environmental Science	197	193	+2.1	363	357	+1.7
Total	2,470	2,392	+3.3	5,370	5,156	+4.2

Regional sales

Sales in Europe saw a slight increase to €887 million. Crop Protection sales in the second quarter of 2014 were at the high level of the prior-year period following an early start to the season. Sales gains for Fungicides offset the declines recorded in the other units, particularly Herbicides. Sales of the Seeds unit registered a moderate increase. The consumer business of Environmental Science expanded significantly.

Sales developed very positively throughout the North America region in the second quarter of 2014, climbing to €748 million. The company achieved significant sales gains in fungicides, herbicides and seed growth units, particularly with products for canola. Seeds business, especially sales of canola seeds, also developed very positively. Sales of Environmental Science posted a small increase.

In the Asia / Pacific region, sales moved forward by 8.2% to €371 million, driven by higher sales of herbicides and fungicides. The business with rice and cotton seed also performed positively. Environmental Science grew sales by a double-digit percentage. Sales gains in Australia, China and India more than offset declines in Japan.

Sales in the Latin America / Africa / Middle East region improved by a substantial 20.7% to €464 million. Crop Protection / Seeds saw particularly robust development in Latin America, where sales rose markedly for nearly all product groups. Bayer achieved higher sales in Africa and the Middle East.

Outlook

In 2014, Bayer expects the market environment for seed and crop protection products to be slightly weaker than in the prior year yet persistently favorable. All regions will likely contribute to growth, with above average growth impetus continuing to come from the Latin American and Asian markets.