The Bayer Group said it achieved gains in sales and earnings in Q2 2010.

"Material Science has left the crisis behind and saw business expand more strongly than expected. Volumes have returned to the pre-crisis level," explained Management Board Chairman Werner Wenning . Sales in Health Care improved slightly, while the subgroup's earnings matched the prior-year level. Crop Science was down year on year. That subgroup saw volumes and selling prices decline in a market environment made difficult by the competitive situation and unfavorable weather conditions.

The Bayer chairman announced that the company will increase its investment for the future more substantially than planned.

"We now expect research and development expenses for the full year to come in at a record level of some €3.1 billion. In this way we are supporting our successful pharmaceutical research and development pipeline - and underscoring our position as the leading research-based pharmaceutical and chemical company in Germany," said Wenning. Previously the company had planned to raise research and development spending in 2010 to approximately €2.9 billion, compared to €2,746 million in the previous year.

Sales of the Bayer Group rose by 14.6% in the second quarter, to €9,179 million (Q2 2009: €8,009 million). Adjusted for currency and portfolio effects, business grew by 9.2%. Earnings before interest, taxes, depreciation and amortization (Ebitda) - before special items - improved by 8.6% to €1,917 million (Q2 2009: €1,765 million). This was attributable primarily to the gratifying business trends at Material Science and Consumer Health, as well as to positive currency effects. The operating result (EBIT) before special items advanced by 14.4% to €1,260 million (Q2 2009: €1,101 million). Research and development expenses rose by 12.7% to €747 million (Q2 2009: €663 million).

Bayer Remains Optimistic for 2010

For the full year, Bayer said it anticipates a further recovery in the global economy, although the pace of growth is expected to slow as the year progresses.

"We remain optimistic for 2010," Wenning emphasized.

The strong recovery at Material Science is compensating for the below-forecast business performance at Health Care and Crop Science. Currency parities have also continued to trend positively. Bayer continues to target currency- and portfolio-adjusted sales growth of more than 5%. The company also still aims to increase Ebitda before special items to more than €7 billion. Core earnings per share are expected to improve by more than 15%. The company's estimates are based on the exchange rates prevailing at the end of the second quarter of 2010.