Management Report

7. Core Earnings Per Share

Earnings per share according to ifrs are affected by the purchase price allocation for acquisitions and other special factors. To enhance comparability, we also determine core net income from continuing operations after eliminating amortization and impairment losses/impairment loss reversals on intangible assets, impairment losses/impairment loss reversals on property, plant and equipment, and special items, along with the related tax effects.

From this core net income we calculate core earnings per share in the same way as earnings per share. Core earnings per share form the basis for our dividend policy. Core earnings per share in the second quarter of 2015 increased by 33.8% to €1.98 (q2 2014: €1.48).

Core Earnings per Share   [Table 14]
  2nd
Quarter
2014
2nd
Quarter
2015
1st
Half
2014
1st
Half
2015
  € million € million € million € million
EBIT (as per income statements) 1,435 1,833 3,500 3,777
Amortization and impairment losses/loss reversals on intangible assets 365 446 711 870
Impairment losses/loss reversals on property, plant and equipment 35 19 35 55
Special items (other than amortization and impairment losses/loss reversals) 41 251 34 447
Core EBIT 1,876 2,549 4,280 5,149
Financial result (as per income statements) (173) (287) (332) (561)
Special items in the financial result (5) (6) (49) (9)
Income taxes (as per income statements) (343) (405) (851) (811)
Tax effects related to amortization, impairment losses/loss reversals and special items (129) (210) (235) (431)
Income after income taxes attributable to non-controlling interest (as per income statements)  (2) (6) (4) (12)
Core net income from continuing operations 1,224 1,635 2,809 3,325
  Shares Shares Shares Shares
Number of issued ordinary shares 826,947,808 826,947,808 826,947,808 826,947,808
Core earnings per share from continuing operations (€) 1.48 1.98 3.40 4.02
Core earnings per share from discontinued operations (€) 0.05 0.02 0.08 0.08
Core earnings per share from continuing and discontinued operations (€) 1.53 2.00 3.48 4.10
2014 figures restated

Core net income from continuing operations, core earnings per share from continuing operations and core ebit are not defined in ifrs.

Last updated: July 29, 2015  Copyright © Bayer AG
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