Bayer earnings down on litigation set-asides

Bayer earnings down on litigation provisions, but revenue up and company raises 2012 outlook

Associated Press

BERLIN (AP) -- Bayer AG says its second-quarter earnings were a third lower than last year because of one-time charges that included money set aside to deal with litigation linked to a contraceptive, but its revenues rose 10 percent and the company raised its full-year outlook.

The pharmaceutical and chemical company on Tuesday reported net earnings of €494 million ($606 million) for April-June — down from €747 million a year earlier. Revenues climbed to €10.18 billion from €9.25 billion.

Earnings were weighed down by special items totaling €762 million. That included €496 million in risk provisions for "all litigations in connection with the oral contraceptive Yasmin/YAZ of which Bayer is currently aware and which it considers to be worthy of settlement."

Bayer says it is raising its full-year revenue and pre-tax earnings guidance.

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