German drugmaker Bayer saw underlying core earnings increase by one third in the second quarter, helped by a gain in prescriptions of new drugs such a stroke prevention pill Xarelto and lower raw material costs at its plastics division. Adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) rose to 2.90 billion euros ($3.21 billion), above market expectations of 2.68 billion, while revenue gained 18 percent to 12.09 billion, also beating the analyst consensus.
It said plans for a separate listing of its MaterialScience unit were on track and that the division, which will be renamed Covestro, saw adjusted EBITDA rise by almost 90 percent to 506 million euros on higher volumes and a steep decline in the costs of petrochemical raw materials.
Analysts had predicted just 420 million euros in adjusted EBITDA on average for the unit, which makes chemicals for rigid insulation foams and upholstery as well as transparent plastics. Bayer still expects 2015 adjusted EBITDA to grow by "a high-teens percentage", including positive currency effects of about 5 percent, which it had previously put at around 8 percent. It cut its 2015 revenue target to roughly 47 billion euros from 48-49 billion previously, accounting for the sale of its blood glucose meters business with about 900 million euros in sales to Panasonic Healthcare in June.