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 after elimination of the amortization of intangible assets, asset write-downs (including any impairment losses), and special items in EBITDA including 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. For the third quarter of 2010, core earnings per share amounted to €0.95 (Q3 2009: €0.78).

Calculation of Core EBIT and Core Earnings Per Share			[Table 14]
	3rd Quarter 2009	3rd Quarter 2010	First Nine Months 2009	First Nine Months 2010
	€ million	€ million	€ million	€ million
EBIT as per income statements	646	556	2,640	2,758
Amortization and write-downs of intangible assets	366	351	1,112	1,183
Write-downs of property, plant and equipment	18	9	60	18
Special items (other than write-downs)	173	436	263	636
Core EBIT	1,203	1,352	4,075	4,595
Non-operating result (as per income statements)	(262)	(267)	(888)	(772)
Income taxes (as per income statements)	(135)	(4)	(549)	(483)
Tax effects related to amortization, write-downs and special items	(166)	(295)	(428)	(607)
Income after taxes attributable to non-controlling interest (as per income statements)	0	(5)	3	(5)
Core net income	640	781	2,213	2,728
Financing expenses for the mandatory convertible bond, net of tax effects	0	0	47	0
Adjusted core net income	640	781	2,260	2,728
	Shares	Shares	Shares	Shares
Weighted average number of issued ordinary shares	826,947,808	826,947,808	792,321,971	826,947,808
(Potential) shares (to be) issued upon conversion of the mandatory convertible bond	0	0	33,366,875	0
Adjusted weighted average total number of issued and potential ordinary shares	826,947,808	826,947,808	825,688,846	826,947,808
Core earnings per share (€)	0.78	0.95	2.74	3.30

The calculation of earnings per share in accordance with the IFRS is explained in the Notes to the Condensed Consolidated Interim Financial Statements. The (adjusted) core net income, core earnings per share and core EBIT are not defined in the IFRS.

7. Core Earnings Per Share

Print Page

Search

Download Center

Links

Publications

Services

Bayer Links

Special Interest