Bayer plans £8bn spending spree
Friday 13 January 1995
Spread over research and capital investment, some of the war chest will be used for acquisitions to reinforce Bayer's operations in selected sectors. One-fifth of expenditure will be in the US, with Asia the other priority region.
Mr Schneider said the aim was to increase worldwide sales in the medium-term from the current equivalent of £17bn to more than £21bn, and the return on sales to at least 10 per cent.
After a bumpy ride through the recession, Bayer is enjoying a surge in profits as it benefits from the stronger economic environment and a radical rationalisation programme.
Pre-tax profits for 1994 are expected to reach £1.3bn, and Mr Schneider expressed confidence that both sales and earnings would increase in the current year.
He indicated that Bayer intended to expand its activities in the US still further after last year's purchase for £650m of the North American over-the-counter business of Sterling Winthrop. The US market held a very promising future for the group, he said.
Late last year, Mr Scheider confirmed Bayer was in negotiations for a further takeover, and was planning an important co-operative venture, both of which were expected to be completed in early 1995. He said then that there were no plans for acquisitions in pharmaceuticals.
Yesterday, he focused on what he called the significant opportunities to be found in the businesses covering pharmaceuticals, consumer care and diagnostics. The goal was to increase the contribution of this segment to total group sales from a current 26 per cent to 30 per cent by 2000.
Mr Schneider was yesterday introducing the Bayer group to the US media following the acquisition of Sterling Winthrop, which also gave the German company back the rights to its name and trademarks. These had been confiscated and sold to Sterling after the First World War.
Bayer's US subsidiary, Miles Inc, will be renamed Bayer Corporation on 1 April.
Geoffrey Macnab reviews American Hustle, also starring Christian Bale and Bradley Cooper
Michelle Nijhuis' daughter insists (s)he is, and she learnt a valuable lesson on gender in books
It takes a platoon of chefs, litres of brandy and rum, and almost 100kg of dried fruit
Jennifer Lawrence: 'It should be illegal to call someone fat on TV'
Ian Watkins: Police probed over earlier allegations as paedophile Lostprophets singer sentenced to 35 years for child sex offences
Iain Duncan Smith leaves Commons food banks debate early
Paul Walker death caused by speed alone
Devyani Khobragade: India-US row escalates over arrest of diplomat in New York
- 1 America's 'virgin births'? One in 200 mothers 'became pregnant without having sex'
- 2 Sun will 'flip upside down' within weeks, says Nasa
- 3 Christmas comes early: Justin Bieber is 'retiring from music'
- 4 Iain Duncan Smith leaves Commons food banks debate early
- 5 Children evacuated from swimming pool after prosthetic leg mistaken for paedophile
- < Previous
- Next >
iJobs Money & Business
£500 - £650 per day: Harrington Starr: Harrington Starr is working with a Glob...
£27000 per annum: Harrington Starr: Junior Consultant (Excel, Financial Spread...
£500 - £600 per day: Harrington Starr: .NET Quantitative Developer - Contract ...
£55000 per annum: Harrington Starr: Technical Operations Analyst (UNIX, Linux,...