Bayer AG - Stockholders' Newsletter Second Quarter 2007

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Financial Statements

Bayer Group Consolidated Statements of Income

	2nd Quarter 2006	2nd Quarter 2007	1st Half 2006	1st Half 2007
€ million
Net sales	6,736	8,217	13,527	16,552
Cost of goods sold	(3,571)	(4,072)	(7,009)	(8,206)
Gross profit	3,165	4,145	6,518	8,346

Selling expenses	(1,442)	(1,919)	(2,807)	(3,726)
Research and development expenses	(439)	(650)	(853)	(1,275)
General administration expenses	(377)	(425)	(730)	(861)
Other operating income	167	228	375	371
Other operating expenses	(197)	(462)	(577)	(763)
Operating result (EBIT)	877	917	1,926	2,092

Equity-method loss	(3)	(13)	(11)	(27)
Non-operating income	151	190	294	432
Non-operating expenses	(376)	(434)	(721)	(880)
Non-operating result	(228)	(257)	(438)	(475)

Income before income taxes	649	660	1,488	1,617

Income taxes	(198)	(247)	(475)	(548)

Income from continuing operations after taxes	451	413	1,013	1,069

Income from discontinued operations after taxes	4	244	39	2,398

Income after taxes	455	657	1,052	3,467
of which attributable to minority interest	3	(3)	0	(2)
of which attributable to Bayer AG stockholders (net income)	452	660	1,052	3,469

Earnings per share (€)
From continuing operations
Basic*	0.59	0.53	1.36	1.36
Diluted*	0.59	0.53	1.36	1.36
From continuing and discontinued operations
Basic*	0.60	0.83	1.41	4.27
Diluted*	0.60	0.83	1.41	4.27