Bayer AG - Annual Report 2006 - Statements of Income

Financial Statements

Bayer Group Consolidated Statements of Income

	Note	2005	2006
€ million
Net sales	[8]	24,701	28,956
Cost of goods sold		(13,412)	(15,275)
Gross profit		11,289	13,681

Selling expenses	[9]	(5,247)	(6,534)
Research and development expenses		(1,729)	(2,297)
General administration expenses		(1,307)	(1,599)
Other operating income	[10]	775	730
Other operating expenses	[11]	(1,267)	(1,219)
Operating result [EBIT]		2,514	2,762

Equity-method loss	[13.1]	(10)	(25)
Non-operating income		632	931
Non-operating expenses		(1,224)	(1,688)
Non-operating result	[13]	(602)	(782)

Income before income taxes		1,912	1,980

Income taxes	[14]	(538)	(454)

Income from continuing operations after taxes		1,374	1,526

Income from discontinued operations after taxes	[7.2]	221	169

Income after taxes		1,595	1,695
of which attributable to minority interest	[15]	(2)	12
of which attributable to Bayer AG stockholders (net income)		1,597	1,683

Earnings per share (€)
From continuing operations	[16]
Basic*		1.88	2.00
Diluted*		1.88	2.00
From continuing and discontinued operations	[16]
Basic*		2.19	2.22
Diluted*		2.19	2.22

2005 figures restated
* The ordinary shares to be issued upon conversion of the mandatory convertible bond are treated as already issued shares.