Bayer sticks to profit target

German drugs and chemicals group Bayer has reported a big rise in operating profits and said it expects to meet earnings targets for the full year.

Operating profits during the April to June quarter rose by 80% to 454m euros ($514.3m; £318m) compared with the same period last year.

Cost-cutting was behind the profits rise as sales dipped 3.3% to 7.3bn euros.

Bayer said it would continue to push ahead with its restructuring programme as economic conditions were unlikely to improve.

Pursuing reform

Chief executive Werner Wenning said he was "quite satisfied" with the results and added that if economic conditions did not worsen he expected operating profits from continuing operations to "increase by a double-digit percentage over 2002".

"For the time being we cannot expect any stimulus for our business through an improvement in the economy," Mr Wenning said.

"So we will drive forward our thorough internal restructuring with even greater vigor in order to sustainably improve our earning power."

Net profits for the quarter fell to 128m euros from 293m euros a year ago, with 2002's result being boosted by the sale of its stake in photographic film maker Agfa Gevaert.

Bayer said it had settled 1,211 lawsuits over the withdrawn cholesterol drug Baycol for 378m euros and had not acknowledged any liability. About 10,100 cases remain pending.