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.
- 1 Is this bridge haunted by the ghost of nu rave?
- 2 The West has it totally wrong on Lee Kuan Yew
- 3 The day I starred in Only Fools and Horses
- 4 Scientists have discovered a simple way to cook rice that dramatically cuts the calories
- 5 Zayn Malik quits One Direction: Hundreds of workers request compassionate leave following band member's exit
Is this bridge haunted by the ghost of nu rave?
Saudi Arabia says it won't rule out building nuclear weapons
Germanwings plane crash: Andreas Lubitz 'had eyesight problems' and woke from nightmares 'screaming we’re going down'
The battle for the Middle East's future begins in Yemen as Saudi Arabia jumps into the abyss
Jeremy Clarkson 'could be given minder' ahead of a potential Top Gear return
Ukip supporters are 55 or older, white and socially conservative, finds British Social Attitudes Report
JK Rowling responds to fan tweeting she 'can't see' Dumbledore being gay
Jeremy Clarkson sacked live: Alan Yentob 'wouldn't rule out' ex Top Gear host's BBC return
David Cameron calls Labour 'hopeless, sneering socialists' while announcing 7-day NHS plans
Revealed: Putin's army of pro-Kremlin bloggers
The West has it totally wrong on Lee Kuan Yew
iJobs Money & Business
Negotiable: Recruitment Genius: To provide a prompt, friendly and efficient se...
Negotiable: Recruitment Genius: You will be the first point of contact for all...
£18000 - £24000 per annum + benefits: Ashdown Group: HR, Payroll & Benefits Of...
£35000 - £38000 per annum + benefits : Ashdown Group: A highly successful, int...