Bayer Group, a major international Drug giant, has posted better performance during the year ended December 2004 and earned a net profit as against a net loss in the previous year mainly due to reduction in costs and improved efficiency.

As per the unaudited figures, the company achieved a net profit of Euro 603 million for the year 2004 as against a net loss of Euro 1361 million in 2003. The company enhanced its dividend to Euro 0.55 from Euro 0.50 per share. The dividend yield calculated on the year-end share price would thus come to 2.2 per cent.

The Group's net sales went up by 4.2 per cent to Euro 29,758 million from Euro 28,567 million. Bayer was successfully able to offset the sharp rise in raw material prices, negative currency effects and expiration of the US patent for Cipro.

According to Werner Wenning, CEO of Bayer, "This improvement in our operating performance is very gratifying. We have exceeded our sales and earnings targets and successfully realigned our company."

The company's profit before interest, depreciation and taxation but before special items improved by 9.1 per cent to Euro 4494 million from Euro 4118 million in the last year. Its gross cash flow increased by 12.1 per cent to Euro 3210 million.

The 2004 figures still include Lanxess AG, which was spun off on January 2005, and the blood plasma business that is to be sold to a US investor group. Closing of this transaction is expected during the first half of 2005.