Bayer AG (BAY.F) Lifts Guidance, Provisions Weigh on Earnings
7/31/2012 6:47:20 AM
German pharmaceutical and chemical company Bayer AG Tuesday raised its outlook due to strong demand for agricultural products, but risk provisions for litigations resulted in a slump in second-quarter earnings. Net profit fell to 494 million euros ($606 million) from EUR747 million a year earlier. Earnings before interest and tax fell 41% to EUR750 million, hit by risk provisions of EUR496 million for litigations in connection with the oral contraceptives Yasmin and Yaz and other special items. EBIT before special items increased 6.7% to EUR1.51 billion.