Bayer Generates Fiscal 2004 Profit

LONDON - Mar 2/05 - SNS -- Provisional results for the 2004 fiscal year reveal experienced a net income of Euro 603 million on sales of Euro 29,758 million across the 2004 fiscal year, compared to a loss of Euro 1,361 on sales of Euro 28,567 million in fiscal 2003.

The improvement in fiscal results reflect a strong fourth quarter, in which the company reported net earnings of Euro 695 million on sales of Euro 7,748 million, versus a loss of Euro 1,952 million on sales of Euro 7,121 million during the fourth quarter of the 2003 fiscal year.

The company said apart from a marked upturn in business, efforts to reduce costs and increase efficiency were major contributors to the turn-around. "Bayer was thus able to more than offset the sharp rise in raw material prices, negative currency effects and expiration of the U.S. patent for Cipro," it said.

The 2004 figures still include Lanxess AG, which was spun off on January 28, 2005, and the blood plasma business that is to be sold to a U.S. investor group. Closing of this transaction is expected during the first half of 2005. Bayer will provide further details of the Group’s performance in fiscal 2004 at its Spring Financial News Conference to be held in Leverkusen on March 15.