Bayer Says Profits Down in Third Quarter

Bayer, the German maker of Aspirin, said Tuesday bottom-line earnings were hit by litigation costs connected with its Yasmin oral contraceptive in the third quarter, but it remained confident for the full year.

Bayer said in a statement its net profit fell by 17.8 percent to 528 million euros ($688 million) in the period from July to September.

Underlying profit, as measured by earnings before interest and tax, was down 23.7 percent at 838 million euros, while sales grew by 11.5 percent to 9.665 billion euros.

The decline in profits was primarily due to a further 205 million euros in provisions set aside for settling litigation in connection with the oral contraceptive Yasmin, which could increase of the risk of blood clots, Bayer explained.

A further 134 million euros in one-off costs were set aside for restructuring.

Nevertheless, from a strategic point of view, "Bayer made good progress in the third quarter," said chief executive Marijn Dekkers.

"We boosted our life sciences businesses via acquisitions and achieved further progress in our innovation pipeline," he said.

"We're on a successful path and underline our outlook for the whole of 2012," Dekkers said.