According to the financial news released this morning by the Bayer Group, the year 2011 was a very successful one, despite the fact that the global economic recovery ran out of steam towards the year end. The company reported an increase in sales of 4.1 % to EUR 36,528 million, with net income soaring 89.9 % to EUR 2,470 million. EBIT was up a substantial 52%, to EUR 4,149, from EUR 2,730 million in 2010. That said, the headline takeaway for international news organization Reuters pinpointed plastics: Bayer profit hit by weak plastics business.
"We achieved the Group targets that we raised after the first quarter", said Bayer CEO Marijn Dekkers, who anticipates adjusted sales growth of around 3% for the Group as a whole in 2012.
The good news was entirely due to the improved performance of the Group's Healthcare and CropScience businesses. Despite an 8% rise in sales compared with 2010, the earnings of the MaterialScience business failed to come up to expectations in 2011. Not only did the company not succeed in achieving any volume increases, the shaky market conditions in the final quarter of the year further dampened the result. The soaring prices of raw materials, which, noted Dekkers, "could not be passed on in full to our customers in the second half of 2011", also cut into the company's margins.