Frankfurt, Mar 12: German chemicals and drugs group Bayer AG has announced record 1997 results which broadly matched analysts' expectations but sent its shares into a slight retreat after recent record runs.Bayer said 1997 operating profits had climbed 20.4 per cent to 5.428 billion marks and that it planned to raise its 1997 dividend to 1.90 marks a share from 1.70.
Group sales climbed 13.2 per cent in 1997 to 55.005 billion marks, while net profit before minorities was up 7.9 per cent at 2.941 billion, it said.
"The results were more or less in line with our expectations," Commerzbank analyst Gerrit Jost said.
"Operating profit was slightly better, net income slightly below our forecast. Overall, the picture is okay," he said.
At the parent-company level, Bayer AG made a net profit of 1.458 billion marks, up 7.1 per cent, on sales of 18.697 billion.
Analysts said that the group's results announcement had been thin on detail and that they hoped to have more information after an analysts' briefing on Thursday.
"The revenues were slightly better than we expected. They were three per cent higher than what we had. Operating profit was two per cent better than what we expected," said Vereinsbank analyst Christiane Dienhart.
"Net profit was as expected. I suspect they don't yet have interest costs under control. They're very heavily financed in dollars. Otherwise, we're waiting for more details."
She said her 1997 earnings per share estimate for 1997 remained around 4.00 marks.
Bayer said it was planning to convert its shares to no-par value shares in preparation for the introduction of a single European currency.
Bayer shares were 39 pfennigs weaker at 81.90 marks by 1530 GMT in computer trade. Bayer earlier touched a fresh life high of 83.45 marks -- it's third consecutive day of record-setting -- but withdrew from these levels in the wake of the results announcement, with dealers blaming profit-taking.
The company will give further details of its 1997 performance at its annual results news conference on March 17.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
