Pittsburgh, Pennsylvania, USA
February 28, 2012
2011: continued growth despite challenging economic conditions
- Total sales EUR 8,177 million ($11,366 million) in North America (up 3.6 percent)
- Sales in the region advanced in CropScience and MaterialScience
- Capital expenditures in North America rose by 32 percent to EUR 420 ($584 million)
- R&D investment in the region remained strong at EUR 528 million ($734 million)
Bayer today reported increased annual sales in North America led by gains in the company's CropScience and MaterialScience subgroups. Total sales in the region (U.S. and Canada) were EUR 8,177 million ($11,366 million*), an increase of 3.6 percent** compared with full-year 2010 sales. North American sales represented nearly one quarter of Bayer's global sales of EUR 36,528 million, maintaining North America's position as the second largest region for Bayer after Europe. Annual sales within the United States advanced by 3.2 percent to $9,791 million compared to $9,486 million for the full-year 2010.
"2011 was another solid year for Bayer in North America, despite continued economic challenges," said Greg Babe, President and CEO of Bayer Corporation USA and Senior Bayer Representative in North America. "Increased demand for our products, especially in the CropScience and MaterialScience businesses, helped lead the way to positive results in this important region.”
Bayer's annual sales in North America increased in two of its three subgroups versus the prior year.
Bayer CropScience's North American sales increased to EUR 1,703 million ($2,367 million), up 14.3 percent. North American sales in Bayer MaterialScience advanced by 9.6 percent to EUR 2,109 million ($2,932 million). In Bayer HealthCare, North American sales fell slightly to EUR 4,360 million ($6,060 million), down 2.4 percent. Bayer HealthCare’s Consumer Health segment continued its positive sales growth to EUR 2,312 million ($3,214 million), up 6.0 percent, while Pharmaceuticals declined to EUR 2,048 ($2,847 million), down 10.5 percent.
"Bayer’s latest overall results in this region show that we are on the right track, but there is still more work to do to assure continued sustainable growth," said Babe. "This year, we look to maintain the positive growth trend while remaining focused on enhancing the efficiencies of our operations."
In 2011, Bayer invested EUR 528 million ($734 million) in research and development in North America and increased its capital expenditures by 32 percent to EUR 420 million ($584 million). Some of the announced investments and key activities in 2011 included a $120 million process technology and energy efficiency improvement project at Bayer MaterialScience’s Baytown, Texas, facility – Bayer’s largest production site in the U.S.; a $17 million “green” renovation at Bayer’s U.S. headquarters in Pittsburgh; a planned$10 million investment by Bayer CropScience to create a Plant Biotechnology Research center in Morrisville, NC; and the opening of Bayer HealthCare’s U.S. Innovation Center in Mission Bay, Calif., home to the company’s U.S. biopharmaceutical research and collaboration activities.
Employment within the region in 2011 decreased as part of global restructuring measures – 15,800 employees in North America at the end of 2011 as compared to 16,400 at the prior year-end; 14,500in the United States at year-end 2011 as compared to 15,100 at year-end 2010.
*The average exchange rate used for 2011 conversions was $1.39 per EUR.
**All percentages are based on the reported EUR figures and are currency adjusted.