Bayer, the German pharmaceuticals and chemicals giant, said it plunged into bottom-line loss last year, largely as result of big asset writedowns and valuation adjustments.
Bayer, the maker of the painkiller Aspirin, said in a statement it turned in a net loss of €1.36 billion in 2003, compared with a profit of €1.06 billion a year earlier.
'The loss was largely due to €1.9 billion in impairment losses and valuation adjustments announced at the end of last year in connection with the strategic realignment of our portfolio,' Bayer chairman Werner Wenning said.
In a strategic u-turn, Bayer announced in November that it planned to float most of its chemicals and plastics businesses on the stock exchange by 2005 and focus instead on higher-margin health care and agrochemicals activities.
Bayer also took €500m in other asset writedowns and restructuring charges related to plant downsizing, as well as €600m in charges related to staff reductions and accounting measures taken in connection with the group's disgraced anti-cholesterol drug Lipobay/Baycol, which Bayer was compelled to withdraw from the market in 2001.
On the positive side, the group booked windfall gains of €500m from the sale its household insecticides business.
But at operating level, earnings also deteriorated, with Bayer turning in loss before interest and tax of €1.203 billion compared with a year-earlier profit of €1.61 billion. Sales fell by 3.6% to €28.567 billion.
