(MENAFN- AFP) German chemicals and pharmaceuticals powerhouse Bayer upped its growth forecasts for the year after a strong second quarter saw profits surge by 19 percent.
While revenues fell 1.4 percent to 11.8 billion euros ($13 billion), profits hit 1.4 billion euros -- compared with 1.2 in the same period in 2015.
The company pointed to strong growth in sales of prescription and non-prescription drugs as the main contributor to the boost.
"We're confident for the whole year and we're increasing our forecast" said newly-installed chief executive Werner Baumann.
Bayer's annual revenues are expected to hit around 35 billion euros, excluding income from the recently-separated plastics business Covestro.
Earnings before interest, tax and special items grew 5.7 percent in the second quarter and are expected to see almost 10 percent growth over the whole year -- up from the five percent the firm previously expected.
Bayer's prescription medications division saw sales growth of 5.5 percent to 4.1 billion euros, while sales of over-the-counter medications fell by 2.3 percent to 1.6 billion euros.
Meanwhile, the agrochemicals unit reported that sales shrank by 4.5 percent to 2.5 billion euros.
Baumann blamed an "ongoing weak market environment" for the result, noting that sales at the division remained "steady" with a fall of 0.4 percent when currency and portfolio effects were taken into account.
Bayer has repeatedly courted US agrochemicals and seeds giant Monsanto in a bid to become the world's largest firm in the sector, with its latest offer standing at almost 60 billion euros -- which would make it the largest-ever takeover by a German company.
But managers at the US firm, controversial for its genetically modified crops and widely-used weedkiller Roundup, have continued to hold out for more cash.
The two firms remain in talks -- although Monsanto is reportedly also in talks with Bayer's German rival BASF over a possible merger of their agrochemicals divisions.
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