CORRECTED: Bayer says quarterly earnings fell to 525 million euros
The German pharmaceutical giant Bayer said on Thursday that its second-quarter net profit fell to 525 million euros (680 million dollars), far below market expectations.
Net profit fell by 1.3 percent, but that compared with analysts' forecasts for a leap of 45 percent compiled by Dow Jones Newswires.
The poor result reflected weaker earnings before interest and tax (EBIT) from Bayer's pharmaceutical division, the figures showed.
Earnings in the unit plunged by 30 percent to 575 million euros, while those of pesticides and other farm products were down by 33.2 percent at 203 million.
The group said that was the result of a "market environment made difficult by the competitive situation and unfavorable weather conditions."
At the group level, sales increased however by 14.6 percent to 9.1 billion euros, owing to a rebound by Bayer's chemical division.
Chairman Werner Wenning confirmed the company's annual target of a five percent increase in sales and core earnings of more than seven billion euros.
© 2010 AFP