Bayer keeps benefiting from euro weakness: report

The logo of Germany's largest drugmaker Bayer HealthCare Pharmaceuticals is pictured on the front of its building in Berlin April 28, 2011.

BERLIN (Reuters) - German pharmaceuticals group Bayer keeps benefiting from the weak euro, though the region's deepening debt crisis is beginning to weigh on orders in some sectors, a Swiss newspaper reported, citing the group's chief financial officer.

"As positive as the situation looks at the moment, it is clear that this will not be the case for the long term," Finanz und Wirtschaft quoted Werner Baumann as saying.

"We are noticing more cautious orders in several upstream industries" as consumers are growing cautious amid the financial crisis, he said.

The euro's weakness helped Bayer's first-quarter results, contributing about 90 million euros ($110 million) to company accounts. Germany's largest drugmaker may continue to benefit from the euro's decline for a bit longer, Baumann said.

Pharmaceuticals, Bayer's core business, remains "very stable," though may suffer from growing cuts in government spending, he said.

The CropScience business had a good start to the year, Baumann said, noting the outlook for the division could be raised if the positive development persists.

"The weakening that, for instance, manufacturers of semiconductors or specialty chemicals already feel is something that we will probably also witness in our business, but later," Baumann said.

Bayer does not plan further restructuring measures as an existing cost-cutting program may yield planned savings of 150 million euros by the end of 2012, Baumann said, adding the company has no plans to sell its MaterialScience business.

(Reporting By Andreas Cremer; Editing by Dan Lalor)

(This story was corrected to fix name of CFO to Baumann)

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