PITTSBURGH, March 20 /PRNewswire/ -- Bayer Corporation's sales climbed
13.6 percent in 2000, topping the $10 billion mark for the first time, a
result of the successful integration of recent acquisitions and the added
capacity and efficiencies Bayer is realizing through its 10-year capital
investment initiative, President and CEO Helge H. Wehmeier announced at the
company's annual press briefing. Profit before taxes was up 29 percent while
net income rose 32 percent, due in part to proceeds from the one-time sale of
investments.
"Our cost savings efforts and our capital investment program paid strong
dividends in 2000, helping us increase sales and remain profitable despite
rising energy and raw materials costs," said Wehmeier. "Bayer is also
harnessing e-commerce to lower its procurement costs, streamline order
processing and customer service and better manage its customer relationships."
Approximately half of the $1.2 billion sales increase was due to
acquisitions, primarily the acquisition of Lyondell's polyol business in early
2000, which gave Bayer a market-leading position in polyurethane chemicals.
Bayer has spent $4 billion on acquisitions since 1998, boosting both its
health care and chemicals sectors.
Health Care Shines
Bayer's health care business continued to grow in 2000, with the
Pharmaceutical Division enjoying a sales increase of 13 percent as new drugs,
such as Kogenate FS Factor VIII, contributed to the bottom line for the first
time, and existing products continued to show strong sales. Baycol, Bayer's
statin for cholesterol control, turned in a strong performance, reaching the
$210 million sales mark, thanks in part to a 0.8 milligram dosage approved by
the FDA in July. Bayer's powerful Cipro antimicrobial turned in its second
consecutive billion-dollar year, while the company's new Avelox, a powerful
fluoroquinolone for the treatment of respiratory tract infections and
community-acquired pneumonia, saw sales of $68 million in its first year on
the market.
"We are very pleased with the more than one million prescriptions Avelox
sold in the United States during the year, out of four million worldwide, and
believe it has blockbuster potential," said Wehmeier. "Avelox is getting
tremendously positive feedback from both the medical community and from
patients who are pleased with its effectiveness and the convenience of once-a-
day dosing."
Bayer's Viadur for the palliative treatment of advanced prostate cancer is
currently in the launch phase. Bayer hopes its new erectile dysfunction drug
will gain FDA approval next year. Also undergoing clinical trials are several
potential cancer drugs.
In the over-the-counter category, Bayer's flagship product, Bayer Aspirin,
saw market share increase to 6.3 percent, up from 4.5 percent when Bayer
re-acquired the Bayer Aspirin brand from Sterling in 1995, while Aleve led the
category with double-digit growth. Alka-Seltzer and Phillips' Milk of
Magnesia also continued to gain market share. The company's One-A-Day
Specialized Blends continued to be the top branded herbal product in the
United States.
Sales of Alka-Seltzer Plus Liqui-Gels grew in 2000, and the launch of
Aleve Cold & Sinus was very successful. This helped offset sales lost when
the company voluntarily discontinued marketing Alka-Seltzer Plus effervescent
cough/cold products because of the FDA's concerns about phenylpropanolamine, a
popular decongestant ingredient.
According to Wehmeier, the company expects to launch a reformulated
effervescent product by this year's cold and flu season.
In Diagnostics, Bayer's diabetes business continues to grow at a healthy
rate. In the laboratory market, Bayer received FDA clearance late last year
for a new blood test to help doctors monitor women with metastatic breast
cancer. Bayer expects to introduce this year a new diagnostic test that can
differentiate different subtypes of the HIV virus. Both these tests will
allow doctors to better tailor treatment regimens to the individual patient.
Chemicals Squeezed
In the latter half of the year, Bayer's polymers and chemicals businesses
were pressured by rising costs for energy and raw materials -- mostly
petroleum derivatives. Delays in passing these increases along to the
customer hurt profitability. However, Wehmeier reported that the company is
starting to recover some of these costs in the first quarter. Sales rose
23.7 percent for the polymers and chemicals sector, due in large part to the
Lyondell acquisition.
In the polymers and chemicals business, Bayer's plastics continued to
perform well, thanks in part to continued demand for polycarbonate, an
engineering material used to make CDs, DVDs, lenses and consumer goods. To
accommodate the projected demand for polycarbonate, Bayer will further expand
its existing Baytown, Texas, polycarbonate facility by more than 200 million
pounds. This expansion is part of the Bayer Group's planned $925 million
polycarbonate investment, which it expects will make it the leading producer
of polycarbonate by 2005.
Although one-time costs related to the integration and rising raw
materials costs affected profits, the company's Polyurethanes Division saw a
significant sales increase due to the acquisition of Lyondell's polyols
business.
Fourth-quarter acquisitions of Sybron and Cytec will benefit Bayer's
Industrial Chemicals Division and its Coatings and Colorants Division in the
coming year, bringing new technologies and broadening product lines.
Agriculture Grows
Bayer's agriculture business experienced sales growth in 2000, despite the
mid-year divestiture of its animal biologicals business, as the chemicals side
of the business, the consumer lawn and garden business and the animal health
segment posted strong sales and profits. And one active ingredient,
imidacloprid, contributed to the success of all three.
Imidicloprid is the active ingredient in Bayer's popular Advantage flea
treatment, the termiticide Premise, Bayer Advanced season-long grub control
and insecticides used to protect food and fiber crops.
Bayer's agricultural chemicals are used not only by farmers, but in
commercial lawn and garden treatment and are available to consumers in the
popular line of Bayer Advanced lawn and garden and home care products
available at home centers, hardware stores and major retail outlets. The
company's animal health products are used not only to protect food supplies,
but for the equine and companion animal market.
"Our agricultural business has several legs to stand on," said Wehmeier.
"It has the best return on sales in the market and, with the recent sale of
our animal biologicals business, is well focused for future growth."
Bayer Corporation's sales were $10.1 billion in 2000, up from $8.9 billion
in 1999. Operating income was $470 million. Profit before taxes was
$301 million, and net income was $202 million. The company invested
$536 million in capital expenditures and more than $800 million in research
and development.
Although best known for its flagship product, Bayer Aspirin, Bayer
Corporation produces a broad range of health care, life sciences and chemical
products found not just in medicine cabinets, but in nearly every bedroom,
living room, kitchen, garage, hospital, farm and factory across America. Its
products help diagnose and treat diseases, purify water, preserve local
landmarks, protect crops, advance automobile safety and durability and improve
people's lives.
The $10 billion company, one of Fortune magazine's Most Admired Companies,
promotes science literacy and hands-on education through its Making Science
Make Sense educational initiative. Approximately 5 percent of Bayer's 23,200
employees volunteer in local schools, and more than 500 charitable
organizations receive funding from the Bayer Foundation.
Headquartered in Pittsburgh, Bayer Corporation is a member of the
worldwide Bayer Group, a $29 billion international life sciences, polymers and
specialty chemicals group based in Leverkusen, Germany. The Bayer Group
(BAYG.DE) stock is a component of the DAX, and Bayer plans to list its stock
on the New York Stock Exchange on September 26, 2001.
SOURCE Bayer Corporation
 back to top
Related links:
http://www.bayerus.com
Company News On-Call:
http://www.prnewswire.com/comp/092575.html or fax,
800-758-5804, ext. 092575
CONTACT:
David B. Reeder of Bayer, 412-777-5666
|
