German specialty chemical company, Bayer Group, has reported continued growth in sales and earnings in the second quarter of 2005. Group sales rose 19.7% year on year, to €7,053 million compared with 5,890 million for the same period in 2004.

According to the company, the overall performance was driven primarily by continuing high demand for the products of Bayer MaterialScience. Sales of this subgroup advanced by 30.8% to €2,734 million compared with €2,091 million in the second quarter of 2004. The main contributors to this upward trend were the polycarbonates and polyurethanes business units.

As a result of the positive financial report Bayer is raising its forecast and now expects group sales to exceed €26 billion against previous guidance of over €25 billion.

For the first six months of 2005, sales advanced by 17.8% to €13,757 million (2004: €11,682 million). First-half net income increased by 87.3% to €1,058 million (2004: €565 million).