German Growth: Bayer and BASF secure record 2012 sales, but net earnings dip

Abstract

Bayer and BASF, Germany’s two largest chemical companies, reported record sales for 2012 last week, with the strongest growth coming from developing countries. But earnings at both firms were below the levels recorded in 2011. Bayer’s net earnings for 2012 were down 1.0% to $3.2 billion, based on an 8.8% sales increase to $52.4 billion. Bayer’s life sciences businesses recorded the strongest growth in earnings and sales. “We continued to grow dynamically, with all the subgroups posting gains in sales and earnings before special items,” said Chairman Marijn E. Dekkers, speaking last Thursday at the firm’s annual financial briefing in Leverkusen, Germany. Bayer’s 2012 earnings were hampered by one-time items totaling $2.3 billion. Dekkers forecasts that the company will increase sales in 2013 by 4–5% and pretax profits by a single-digit percentage. The firm plans to spend $4.2 billion on R&D in 2013, a hike of about 7%. BASF reported ...