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Bayer MaterialScience leads group forward in Q1 2010

May 06/2010

(plasteurope) -- A strong turnaround at Bayer MaterialScience fuelled the sales and earnings upswing of the Bayer group in the 2010 first quarter. The decline in business momentum currently being seen at sub-groups HealthCare and CropScience is being offset by the recovery at MaterialScience, “which is progressing faster than expected,” retiring CEO Werner Wenning said, addressing his final annual general meeting.

 

Bayer group figures show an overall 5.3% rise in sales revenue to EUR 8.3 bn, with EBITDA after special items up 11% to EUR 1.8 bn. At BMS, the sales increase of nearly 36% to EUR 2.2 bn was coupled with a positive EBITDA of EUR 287m following a EUR 128m loss in the 2009 quarter. HealthCare saw Q1 sales and EBITDA improve by the same margin, 0.7%, to EUR 3.9 bn and EUR 1.1 bn respectively, while CropScience recorded a sales decline of almost 8% to just under EUR 2 bn and an earnings setback of 30% to EUR 511m.

 

For MaterialScience, Wenning pointed to a “clear recovery in a stabilising market environment.” The positive result in Q1 was due mainly to “considerably higher volumes and the related increase in capacity utilisation,” he remarked, noting that the polymers arm saw a sales gain of nearly 10% against last year’s fourth quarter. The greatest increase in demand from individual markets came from automotive. The geographical star performer was Asia-Pacific, but volumes “also rose appreciably” in Europe and North America, which had been hardest hit by the economic crisis.

 

Sales of the BMS Polyurethanes business unit surged forward by 31% in the 2010 first quarter to EUR 1.1 bn, with revenue in all product groups, including TDI, MDI and polyether, rising by double-digit percentages. Volumes were also higher on the whole. Price increases in Asia-Pacific could not fully offset declines in Europe and North America. The Polycarbonates unit posted a nearly 54% sales increase to EUR 575m. Both resin and PC sheet / semi-finished products benefited from higher demand in all regions and saw “substantial volume increases.” Selling prices moved up across the board, with slight declines in Europe, North America and Asia more than offset by gains in Asia-Pacific.

 

As the global economic recovery continues, Wenning said MaterialScience expects to see improvement in all of its markets. Consequently, the sub-group is doubling its targeted full-year sales increase, on a currency- and portfolio-adjusted basis, to 20% from the 10% predicted earlier this year – see Plasteurope.com of 01.03.2010. The PC and polyurethanes giant plans to more than double its EBITDA before special items. Despite BMS’ role as Bayer’s performance driver in Q1, the financial press renewed its speculation that CEO-designate Marijn Dekkers will divest MaterialScience.

 

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Bayer MaterialScience leads group forward in Q1 2010

MRC Reference

 

The share in the Russian market in 2008:
 PS - 0.7% (ABS - 7.2%).

 

Annual sales growth in Russia over the last 5 years:
 PS - (-10%).

 

Polymers processing technologies:
 injection molding.


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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