Bayer slips into the red, outlook for 2004 is positive
The Bayer Group has posted a 3.6% decline in net sales for the full year 2003 to €28.6 billion, and for the first time in its history a loss in profits of €1.4 billion.
Werner Wenning, chairman of the board of management, attributed the loss to charges incurred at the end of 2003 in connection with the strategic realignment and restructuring of the company’s portfolio.
The Bayer Chemicals division, meanwhile, reported a 21.3% decline in revenues to €4.3 billion, impacted the company said by the weak economy, increasing competitive pressures, rising raw material and energy costs and unfavourable exchange rates.
For 2004, Wenning remained positive, and said the group intended to increase its operating results by more than 10%. “Our goals are ambitious. We plan to achieve them through the announced portfolio changes, sales growth especially from new products in our life-science businesses, and considerable efficiency improvements in all subgroups”, he said.
Despite Bayer’s net loss for the year, the company has decided to pay a dividend. Wenning explained: “We have a strong cash flow and are convinced of the future profitability of the Bayer Group. With our proposed dividend of €0.50 per share, we want to take into account our stockholders’ interests with an appropriate dividend yield, even in this special situation.”
For related articles type ‘Bayer’ into the news search facility of leatherbiz.com, or see ‘Bayer Chemical’s NewCo becomes ‘Lanxess’, 19.03.04.
