BERLIN, Germany, October 24 /PRNewswire-FirstCall/ -- Schering AG, Germany announced today that in the first nine months of 2005, the Group achieved net sales growth of 8 percent after adjustment for structure effects. In total, net sales increased by 7 percent to EUR 3.902 million. Net sales were not affected by exchange rate fluctuations.
The operating profit in the first nine months was EUR 710 million, 18 percent above the previous year’s level. Net profit increased by 25 percent compared to the previous year’s figure to EUR 480 million. Earnings per share rose by 26 percent to EUR 2.53.
“Growth of our net sales outperforms market growth and demonstrates the success of our innovative products,” said Dr. Hubertus Erlen, Chairman of the Executive Board of Schering AG. “Based on the outstanding performance of our business, we are raising our profitability goal and now expect the operating margin for the fiscal year 2005 to be above 17 percent. This means that we will already come close to our set profitability goal of 18 percent for 2006 in this year.”
“The ongoing successful implementation of our FOCUS Initiative helped us achieve the best quarterly results in the history of our company,” said Dr. Jorg Spiekerkotter, member of the Executive Board of Schering AG responsible for Finance. “We will continue to drive the measures to increase profitability and thus sustainably improve our cost structures.”
In the fertility control business area, Schering achieved net sales growth of 11 percent currency adjusted (EUR 1,231m) in the first nine months. Yasmin(R) net sales increased by 34 percent currency adjusted (EUR 421 million) in the same time period. Yasmin(R) is the leading birth control pill worldwide. Net sales of Mirena(R), the intrauterine delivery system, rose by 19 percent currency adjusted (EUR 170 million). Net sales of Betaferon(R), a product for the treatment of multiple sclerosis, increased by 9 percent (EUR 627 million).
Schering AG announced at the same time the transfer of EUR 450 million to the Schering Pension Trust (Schering Altersversorgung Treuhand), reducing recognized pension liabilities accordingly.
Key data:
(All figures in the following section refer to currency adjusted sales growth rates unless otherwise indicated.)
First nine months of 2005 (compared to the first nine months of 2004): - Net sales: EUR 3,902m; +8% organic - Net sales of Yasmin(R): EUR 421m; +34% (in the U.S.: US$ 251m, +29%) - Net sales of Betaferon(R): EUR 627m; +9% (in the U.S.: US$ 259m, +2%) - United States Region: EUR 968m; +11% - Gross profit of net sales: EUR 2,972m; +8% - Research and development costs: EUR 707m; +4% - Operating profit: EUR 710m; +18% - Net profit: EUR 480m; +25% - Cash flow: EUR 645m; +12% - Basic earnings per share: EUR 2.53; +26%
- Number of employees (as of Sept. 30, 2005): 24,793; -3% (compared to Dec. 31, 2004)
Third quarter of 2005 (compared to the third quarter of 2004):
- Net sales: EUR 1,355m; +9% after adjusting for currency and structure effects; +10% in total
- Net sales of Yasmin(R): EUR 165m; +34% (in the U.S.: US$ 101m; +28%) - Net sales of Betaferon(R): EUR 223m, +8% (in the U.S.: US$ 94m; -6%) - Gross profit of net sales: EUR 1,036m; +12% - Research and development costs: EUR 248m; +2% - Operating profit: EUR 244m; +33% - Net profit: EUR 160m; +29% - Cash flow: EUR 255m; +23% - Basic earnings per share: EUR 0.85; +31%
- Number of employees (as of Sept. 30, 2005): 24,793; -5% (compared to Sept. 30, 2004)
All figures based on an average U.S. dollar/euro translation of 1.25
An analyst conference call, in the English language, will be held and audio webcast on our homepage www.schering.de today at 16.00 hours CET.
On the occasion of its annual press conference, Schering AG will publish its Preliminary Report for the full year on February 20, 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 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 AG
CONTACT: Your contacts at Corporate Communication: Media Relations: OliverRenner, Tel: +49-30-468-124-31, oliver.renner@schering.de, InvestorRelations: Peter Vogt, Tel: +49-30-468-128-38, peter.vogt@schering.deInvestor Relations: Dr. Jost Reinhard, Tel: +49-30-468-150-62,jost.reinhard@schering.de
