Schering AG Raises Outlook After Strong First Half Year
25 Juli 2006 - 9:28AM
PR Newswire (US)
Net Sales: +11% BERLIN, Germany, July 25 /PRNewswire-FirstCall/ --
The Schering AG Group (FSE: SCH, NYSE: SHR), Germany, expanded its
business in the first six months of 2006 significantly and
continued to increase its profitability. Net sales increased by 11%
to EUR 2,824 million. Schering AG's top-selling products, Betaferon
and Yasmin, exhibited high dynamic growth. Net sales of the
multiple sclerosis drug, Betaferon, increased in the double-digit
range by 17% and, in total, amounted to EUR 481 million in the
first half year of 2006. The oral contraceptive, Yasmin,
significantly contributed to the overall strong growth of Schering
AG's largest business area, Gynecology&Andrology, with an
increase of 33% to EUR 351 million*. In this business area alone,
net sales increased by 17%. Yasmin is the most successful oral
contraceptive worldwide. Net sales of the intrauterine delivery
system, Mirena(R), developed above-average with a rise of 26%. Net
sales of the oncology business area also increased in the
double-digit range by 14% in the first six months of 2006. Net
sales of Fludara(R) and Campath(R) developed very positively with
respective increases of above 20%. Net sales of Bonefos(R) also
increased in the double-digit range with a rise of 20%. Schering AG
clearly increased net sales in its major regional markets. In
Europe, net sales increased by 9%. Net sales in the United States
Region (+14%), Latin America/Canada Region (+24%) and Asia/Pacific
Region (+20%) increased in the double-digit range, respectively.
"We are pleased with the positive development of our business in
the first six months of 2006. The good results prove the market
success of our products as well as the extraordinary commitment of
our employees," said Dr. Hubertus Erlen, Chairman of the Executive
Board of Schering AG. "Our competitive strength in specialized
markets represents a solid foundation for the future success of
Bayer Schering Pharma." Adjusted for one-time effects relating to
company divestitures and take-over related expenses, the operating
profit increased by 20% to EUR 559 million. This corresponds to an
operating margin of approximately 20%. Including these one-time
effects, the operating profit decreased to EUR 410 million, 12%
below the previous year's figure. Net profit declined by 6% to EUR
301 million. Earnings per share also decreased by 6% to EUR 1.58.
Outlook raised For the fiscal year 2006, Schering AG Group expects
an organic net sales growth in the high single-digit range. The
Group expects that the top-selling product, Betaferon(R), will grow
in the double-digit range currency adjusted. For Yasmin(R), the
Schering AG Group expects a continued, strong double-digit net
sales growth. Based on a continued positive business development
and positive effects resulting from the ongoing program to increase
efficiency (FOCUS), Schering AG expects that the operating margin
for 2006 will be in the range of 18.5 to 19 percent (excluding
effects from acquisitions or divestitures of business activities as
well as takeover-related expenses). * includes all net sales of the
drospirenone product family (Yasmin, YAZ(R), Yasminelle(R)) Unless
otherwise indicated, all narrative refers to currency adjusted
sales growth rates. Schering AG is a research-based pharmaceutical
company. Its activities are focused on four business areas:
Gynecology&Andrology, Oncology, Diagnostic Imaging as well as
Specialized Therapeutics for disabling diseases. As a global player
with innovative products Schering AG aims for leading positions in
specialized markets worldwide. With in-house R&D and supported
by an excellent global network of external partners, Schering AG is
securing a promising product pipeline. Using new ideas, Schering AG
aims to make a recognized contribution to medical progress and
strives to improve the quality of life: making medicine work This
press release has been published by Corporate Communication of
Schering AG, Berlin, Germany. Your contacts at Corporate
Communication: Media Relations: Oliver Renner , T:
+49-30-468-124-31, Media Relations: Verena von Bassewitz, T:
+49-30-468-19-22-06, Investor Relations: Peter Vogt, T:
+49-30-468-128-38, Investor Relations: Dr. Jost Reinhard, T:
+49-30-468-150-62, Find additional information at:
www.schering.de/eng Certain statements in this press release that
are neither reported financial results nor other historical
information are forward-looking statements, including but not
limited to, statements that are predictions of or indicate future
events, trends, plans or objectives. Undue reliance should not be
placed on such statements because, by their nature, they are
subject to known and unknown risks and uncertainties and can be
affected by other factors that could cause actual results and
Schering AG's plans and objectives to differ materially from those
expressed or implied in the forward-looking statements. Certain
factors that may cause such differences are discussed in our Form
20-F and Form 6-K reports filed with the U.S. Securities and
Exchange Commission. Schering AG undertakes no obligation to update
publicly or revise any of these forward-looking statements, whether
to reflect new information or future events or circumstances or
otherwise. DATASOURCE: Schering AG CONTACT: Media Relations: Oliver
Renner , T: +49-30-468-124-31, , Media Relations: Verena von
Bassewitz, T: +49-30-468-19-22-06, , Investor Relations: Peter
Vogt, T: +49-30-468-128-38, , Investor Relations: Dr. Jost
Reinhard, T: +49-30-468-150-62,
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