Bayer's (BAYRY: 0.00 N/A N/A) core earnings per share (EPS) during the first quarter of fiscal 2010 came in at �.20 (approx $1.64) compared to �.91 (approx. $1.26) in the year-ago period. The company recorded a 5.3% year-over-year growth in revenues to �,316 million.
The three major segments: Healthcare, MaterialScience and CropScience accounted for 48%, 28% and 24%, respectively of total revenues during the reported quarter. While revenues from Healthcare and MaterialScience segment improved by 0.7% and 35.5%, respectively, revenues from CropScience dropped by 7.9%.
The Healthcare segment recorded revenues of �,869 million compared to �,843 million in the corresponding period last year. The marginal improvement in this segment is the result of a 6.5% growth in Consumer Health, partially offset by a 2.2% decline in revenues from Pharmaceuticals.
Products with robust growth during the quarter are Mirena (up 14.4% to �43 million), Nexavar (up 13.1% to �55 million) whereas the Yaz franchise (�287 million) and Betaferon (�283 million) came down by 10% and 6%, respectively.
Bayer's primary market, Europe – accounting for 39% of its Healthcare revenues during the quarter came down by 3.1% compared to the first quarter of 2009. The other markets of Asia-Pacific, North America and Latin America/Africa/Middle East grew 5%, 2.7% and 2.4%, respectively.
Revenues from CropScience declined 7.9% to �,952 million during the quarter on lower volume and prices. Unfavorable weather conditions in many regions and lower prices for major agricultural commodities have brought down revenues of this segment.
However, we note that the business has recovered at the end of the quarter. Although revenues from Crop Protection (division of CropScience) declined 14.9% to �,476 million, sales of Environmental Science/BioScience increased 23.3% to �76 million. Material Science began 2010 on a strong note. This segment recorded revenues of �,216 million, up 35.5% from the year-ago period due to an improvement in volume and prices.
In 2009, Bayer reduced its net debt to �.7 billion from �4.2 billion at the end of 2008. The debt level at the end of the first quarter remained unchanged at �.7 billion.
Bayer raised its outlook for 2010. The company expects global recovery to continue, which has inspired it to target more than 5% currency and portfolio adjusted sales growth with EBITDA before special items exceeding � billion (previous guidance: towards � billion). Additionally, core EPS is expected to improve by more than 15% compared to the earlier projection of 10% growth.
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