On Monday Bayer AG stated that it saw a surprise net loss in the final quarter as high charges, including a write-down of four hundred and five million euros or five hundred and fifty seven million dollars on its brand name Schering, affected the company's results.

The German pharmaceutical and chemicals group stated that its net loss for the final three months of 2010 was in the tune of one hundred and forty five million euros, down from one hundred and fifty three million euros net profit seen a year earlier, significantly below analysts' expectations of one hundred and fifty nine million euros worth profit. Still, sales went up to nine billion euros from €7.9 billion.

Bayer further said that it booked a charge of four hundred and five million euros after it abandoned its Schering brand.

Like several other rivals, Bayer profited from the massive rebound in demand for chemicals in the year of 2010, but its pharmaceuticals business is now pressurized from strong generics competition and dipping drugs prices due to regulatory changes in America and Europe.

Bayer stated that it expects adjusted sales growth of four percent six percent in the year of 2011, earnings before interest, taxes, depreciation and amortization before special items to be around seven and a half billion euros, and an improvement of around ten percent in core earnings per share, a measure of gain that excludes non cash expenses and other items. Its Ebitda before items went up to €1.69 billion from one and a half billion euros seen in the final quarter.

Bayer dropped twenty cents, or 0.4 percent, to hit 54.80 euros in Frankfurt trading seen on Feb. 25. The stock has returned fourteen percent including reinvested dividends in the past year, compared with a thirty four percent return for the Bloomberg Europe Chemicals Index.