Bayer has revised its outlook after revealing that profitability at its MaterialScence division has been damaged by rising raw material costs.
Overall first quarter earnings rose 0.4% to £2bn, predominantly on the back of pesticide sales, which helped offset weakened plastics profitability. EBITDA before special items from MaterialScience slumped by 26.9% to £172m.
“HealthCare and CropScience got off to a good start in our anniversary year. Our new pharmaceutical products especially grew at a dynamic pace,” said chairman Dr Marijn Dekkers.
His comments will no doubt reignite speculation that the company will seek to dispose of its MaterialScence operation to focus on its medical and crop science divisions, which are both largely immune to cyclical demand.