Bayer issues warning on profits for 2001
The German chemical producer Bayer has revised its projected results for 2001 downward on the back of production problems with one of its pharmaceutical products and the continuing slowdown in the world economy.
The company says it is no longer on target to repeat last year’s performance – the most successful in the company’s history - citing a sharp drop in earnings from its biotechnology product Konengate, a weakened world economy and high raw material costs.
Nevertheless, the company expects to report an operating result before exceptional items for 2001 in the region of 3 billion Euros.
Bayer says the weakness of the U.S. economy has had the knock-on effect of slowing growth in Europe and Asia – a factor that in turn has negatively impacted on its polymers business. Here, weak demand prevented the company from raising its selling prices high enough to offset high raw material costs. In its healthcare division, problems affecting the production of Konengate were so great as to offset the good performances turned in by some of its other chemically-produced pharmaceuticals.
There was however much better news from the company’s Chemicals and Agricultural business sector that incorporates speciality leather chemicals. Here, the trend remained upward, keeping the business sector on target for projected year-end results.
