Bayer Q3 net income falls 10 pct

German drugs and chemicals maker Bayer AG reported Tuesday a 10 percent drop in third-quarter net income as strong sales in health care and pharmaceuticals were offset by weaker demand for fertilizers and materials.

Bayer, based in Leverkusen, said net income fell to euro249 million ($374 million) in the July-September period from euro277 million in the third quarter of 2008.
Revenue for the period was 7 percent lower at euro7.4 billion compared with euro8 billion in the third quarter of 2008.

"Our previous prediction has proven justified: the global economy seems to have passed the bottom of the cycle," Werner Wenning, Bayers chief executive said in the companys report.

"We expect this trend to continue through the end of the year." However, he said it is still too early to speak of a self-sustaining upswing in industry.

The health care business showed a revenue increase of 4 percent to euro4 billion, with all segments contributing to the gain, the company said.

The pharmaceutical business, which is part of health care, saw a 3 percent rise in revenue to nearly euro3 billion, with strong performances in Asia and Latin America.

Top selling drugs included Aspirin Cardio, a drug to prevent heart attacks, which saw revenue improve by 15 percent. Revenue for Kogenta, a hemophilia treatment, rose 3.4 percent.

Revenue in the consumer health care segment rose 5 percent to euro1.4 billion. Nonprescription drug sales were boosted by gains of 23 percent and 9 percent for the pain reliever Aleve-Naproxen and the skin care products Bepanthen-Bepanthol.

The top-selling product of the medical care division, which is part of consumer health care, was the Contour line of blood glucose meters, with a revenue gain of 15 percent.

The material science division however, reported a 20 percent decline in revenue to euro2 billion. The company said it saw a distinct drop in selling prices and volumes. Products including polyurethanes, plastics, coatings and adhesives all saw double-digit revenue decline.

The company has said in the past it has been affected by the slowdown in demand from the auto industry, for example.

Bayers crop science division, meanwhile, reported a 9 percent decline in revenue to euro1.1 billion. Crop protection revenues fell 9 percent, while the environmental science - bio science segment saw a 8 percent drop.

"The market environment for Bayer Crop Science was marred by lower prices for key crop commodities, adverse weather conditions and higher trade inventories of crop protection products," Wenning said.

The company said crop science revenue growth in Latin America was not sufficient to offset a considerable drop in business in Europe and North America.

Shares of Bayer were up slightly at euro47.82 in Frankfurt morning trading.