German chemicals and pharmaceuticals giant Bayer says its bottom-line profit fell by a third in the second quarter, but it increased its full-year profit targets.
Bayer said in a statement today its net profit declined by 34 per cent to 494 million euros ($A583.58 million) from April to June.
The decline was primarily due to provisions for litigation connected with its oral contraceptive Yasmin and underlying profits were higher, Bayer said.
Earnings before interest, tax, depreciation and amortisation (EBITDA) rose by 6.7 per cent to 2.172 billion euros on a 10-per cent rise in sales to 10.177 billion euros, Bayer said.
"In view of the strong business performance, we are raising our guidance for the full year 2012," chief executive Marijn Dekkers said.
"Following the good business performance in the first half of 2012, especially at the crop science and healthcare divisions, we are also confident for the second half of the year," Mr Dekkers said.
Sales were projected to rise by four to five per cent to about 40 billion euros, up from an original forecast of 3 per cent.And underlying profit, instead of improving only slightly, was now expected to show a "high-single-digit percentage" increase, or a rise of up to 9 per cent, Bayer said.