Bayer CropScience confirms profitability targets

11-Oct-2004

Bayer CropScience aims to grow its EBITDA margin from 19 percent in 2003 to 25 percent by 2006. The company aims to further increase this margin to 26 percent. The Bayer subgroup, headquartered in Monheim, Germany, plans to achieve its profitability objectives with a package of efficiency-enhancing measures, reaching its full annual savings potential of around EUR 200 million by 2007. The initiative complements the restructuring project carried out during the integration of Aventis CropScience since 2002.

"This initiative confirms our clear, long-term profitability targets," says Professor Dr. Friedrich Berschauer, CEO of Bayer CropScience. "We are on course to achieve the projected synergies from the integration and now intend to create the basis for further growth in the future. Our new process optimization initiative should make a significant contribution in this respect from 2007." Having streamlined its global management structures effective July 1, 2004, Bayer CropScience now intends to further enhance efficiency in all areas of the company by continuing to improve its internal business processes. This includes a review of procurement, supply chain management and production processes and adjustments in the field of Research & Development (R& D). Even after this adjustment Bayer CropScience will be able to draw on the largest budget for crop protection research and development in the industry.

These efficiency-boosting measures are expected to become fully effective by 2007. By then, headcount at Bayer CropScience's Monheim and Frankfurt sites in Germany is to be reduced by around 200. This reduction will be performed in a socially responsible way using the tools agreed with the Works Council, especially senior part-time working and early retirement programs.

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