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Bayer profits fall
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April 27, 2001: 3:49 a.m. ET
High raw material costs hamper German chemicals giant, earnings slide
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LONDON (CNN) - German chemicals and pharmaceuticals group Bayer said on Friday first-quarter profit declined as raw material costs rose.
Operating profit before exceptionals fell 6.9 percent year-on-year. Production problems for biological products also had an effect and Bayer said the drop was also due to an exceptionally strong first-quarter in 2000.
The profit of  936 million ($844 million) was just below a consensus forecast by analysts, as were sales which rose 10.1 per cent to 7.66 billion.
A company statement said Bayer had not so far been able to offset the persistently high level of raw material costs through higher selling prices.
But the chemicals giant says it is confident of exceeding last year's record earnings in 2001.
Bayer faces a resolution at its annual meeting on Friday calling for the break-up of the conglomerate into separate pharmaceuticals, chemicals and agrochemicals companies.
The Financial Times reported that fund managers predicted the resolution would win the support of 5 percent to 10 percent of shareholders. But major shareholders such as Allianz and Deutsche Bank would support Bayer.
The company has been divesting non-core businesses and said last month it wanted to sell its stake in film equipment maker Agfa-Gevaert.
Bayer shares (FBAY) fell 2.8 per cent in early trading in Frankfurt to 47.99. 
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