Schering AG posts record profits for 2005

German drugs firm Schering AG has filed positive earnings results for 2005.

It said that its operating profit rose by 21 per cent to ?928 million, while net profits were recorded at ?619 million signalling growth of 23 per cent.

The record results came on the back of worldwide sales growth and several individual successes. Overall Schering boosted sales by eight per cent to ?5.3 billion, and cited growth in sales of its multiple sclerosis drug Betaferon and its contraceptive Yasmin as contributing to its success.

It announced that it had begun to exercise its rights to buy back equipment used to manufacture Betaferon from Chiron and would take over supply of the drug.

Dr Hubertus Erlen, chairman of the executive board, was positive about the firm’s future earnings: “We are very close to our goal of an 18 per cent operating margin for 2006. We will now pursue an operating margin of 20 per cent for 2008.”

Schering also announced that between March and September of this year it would seek to buy-back ?500 million of stock from shareholders.

“Our share buy-back program and the dividend payment in 2005 allows us to give back approximately ?700 million to our shareholders,” said Dr Erlen.

“Hence, we are continuing with our shareholder-oriented dividend policy without significantly limiting our financial power to carry out possible future acquisitions.”

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