BERLIN, Germany, February 20 /PRNewswire-FirstCall/ -- Schering AG, Germany increased its net sales in 2005 by 8 percent (currency adjusted: 7%) to EUR 5,308 million. Operating profit rose by 21 percent to EUR 928 million and net profit increased by 23 percent to EUR 619 million. Earnings per share rose by 23 percent to EUR 3.26. The operating margin improved to 17.5 percent in 2005.
The positive net sales development in 2005 was primarily based on the success of Betaferon(R) for the treatment of multiple sclerosis (+10%) as well as the worldwide leading oral contraceptive, Yasmin(R) (+34%), and the intrauterine delivery system, Mirena(R) (+21%).
These products contributed significantly to the increase of net sales in the United States Region (+13%), Latin America/Canada Region (+9%) and Asia/Pacific Region (+7%).
On the basis of these good results, a dividend payment of EUR 1.20 per share for fiscal year 2005 will be proposed to the Annual General Meeting on April 19, 2006. This corresponds to an increase of 20 percent compared to the previous year's figure.
At the same time, Schering AG has initiated the largest program for the buy-back of shares in the company's history. Between March 1, 2006 and September 30, 2006, Schering AG will purchase own shares on the stock market up to the value of EUR 500 million.
"We are very close to our goal of an 18 percent operating margin for 2006. We will now pursue an operating margin of 20 percent for 2008," said Dr. Hubertus Erlen, Chairman of the Executive Board of Schering AG. "Our share buy-back program and the dividend payment in 2005 allows us to give back approximately EUR 700 million to our shareholders. Hence, we are continuing with our shareholder-oriented dividend policy without significantly limiting our financial power to carry out possible future acquisitions."
Schering also announced today its intention to exercise its right under its Betaseron(R) supply agreement with Chiron Corporation to purchase from Chiron all of the items of property used by Chiron in the manufacture for Schering of Betaseron(R) products.
Upon completion of the purchase, the terms of which have not yet been fixed, Schering would control the means of supply of Betaseron(R) in the United States thus ending its supply relationship with Chiron.
All figures in this press release refer to currency adjusted sales growth rates unless otherwise indicated.
Key data: 2005 (compared to 2004): - Net sales: EUR 5,308m; +7% - Net sales of Yasmin(R): EUR 586m; +34% (in the U.S.: US$ 349m, +33%) - Net sales of Betaferon(R): EUR 867m; +10% (in the U.S.: US$ 370m, +5%) - United States Region: EUR 1,391m; +13% - Gross profit: EUR 4,052m; +9% - Research and development costs: EUR 982m; +7% - Operating profit: EUR 928m; +21% - Net profit: EUR 619m; +23% - Cash flows from operating activities: EUR 1,048m; +40% - Basic earnings per share: EUR 3.26; +23%
- Number of employees (December 31, 2005): 24,658; -4% (compared to Dec. 31, 2004)
Fourth quarter of 2005 (compared to the fourth quarter of 2004): - Net sales: EUR 1,406m; +6% - Net sales of Yasmin(R): EUR 165m; +35% (in the U.S.: US$ 98m; +44%) - Net sales of Betaferon(R): EUR 240m, +12% (in the U.S.: US$ 111m; +12%) - Gross profit of net sales: EUR 1,080m; +15% - Research and development costs: EUR 275m; +17% - Operating profit: EUR 218m; +30% - Net profit: EUR 139m; +17% - Cash flows from operating activities: EUR 243m; +19% - Basic earnings per share: EUR 0.73; +16%
- Number of employees (December 31, 2005): 24,658; -4% (compared to December 31, 2004)
All figures based on an average U.S. dollar/euro translation of 1.24
An analyst conference call, in the English language, will be held and audio webcast on our homepage www.schering.de today, February 20, 2006 at 16.00 hours CET.
Schering AG will publish the Annual Report 2005 on March 10, 2006.
Schering AG is a research-based pharmaceutical company. Its activities are focused on four business areas: Gynecology&Andrology, Oncology, Diagnostic Imaging as well as Specialized Therapeutics for disabling diseases. As a global player with innovative products Schering AG aims for leading positions in specialized markets worldwide. With in-house R&D and supported by an excellent global network of external partners, Schering AG is securing a promising product pipeline. Using new ideas, Schering AG aims to make a recognized contribution to medical progress and strives to improve the quality of life: making medicine work
This press release has been published by Corporate Communication of Schering AG, Berlin, Germany.
Your contacts at Corporate Communication:
Media Relations: Oliver Renner, T: +49-30-468-124-31, oliver.renner@schering.de
Media Relations: Verena von Bassewitz, T: +49-30-468-192-206, verena.vonbassewitz@schering.de
Investor Relations: Peter Vogt, T: +49-30-468-128-38, peter.vogt@schering.de
Investor Relations: Dr. Jost Reinhard, T: +49-30-468-150-62, jost.reinhard@schering.de
Find additional information at: www.schering.de/eng
Certain statements in this press release that are neither reported financial results nor other historical information are forward-looking statements, including but not limited to, statements that are predictions of or indicate future events, trends, plans or objectives. Undue reliance should not be placed on such statements because, by their nature, they are subject to known and unknown risks and uncertainties and can be affected by other factors that could cause actual results and Schering AG's plans and objectives to differ materially from those expressed or implied in the forward-looking statements. Certain factors that may cause such differences are discussed in our Form 20-F and Form 6-K reports filed with the U.S. Securities and Exchange Commission. Schering AG undertakes no obligation to update publicly or revise any of these forward-looking statements, whether to reflect new information or future events or circumstances or otherwise.
Schering AGCONTACT: Your contacts at Corporate Communication: Media Relations: OliverRenner, Tel: +49-30-468-124-31, oliver.renner@schering.de, Media Relations:Verena von Bassewitz, Tel: +49-30-468-192-206,verena.vonbassewitz@schering.de, Investor Relations: Peter Vogt, Tel:+49-30-468-128-38, peter.vogt@schering.de, Investor Relations: Dr. JostReinhard, Tel: +49-30-468-150-62, jost.reinhard@schering.de
