Frankfurt, July 29: German pharmaceutical giant Bayer said Thursday that its second quarter net profit fell to 525 million euros (680 million dollars), well below market expectations.
Net profit fell by just 1.3 percent, but that compared with analysts forecasts for a leap of 45 percent compiled by Dow Jones Newswires.
The poor result was due to weaker sales of Bayer's pharmaceutical and agricultural products, the group said in a statement.
Core earnings in the pharmaceutical unit plunged by 30 percent to 575 million euros, while those of fertilizers and other farm products were down by 33.2 percent at 203 million.
The group said that was the result of a "market environment made difficult by the competitive situation and unfavorable weather conditions."
At the group level, sales increased however by 14.6 percent to 9.1 billion euros, thanks to a rebound in Bayer's chemical division.
Chairman Werner Wenning confirmed the company's annual target of a five percent increase in sales and core earnings of more than seven billion euros.