Bayer Swung to Quarterly Loss on Litigation Provisions
August 04 2020 - 2:47AM
Dow Jones News
By Kim Richters
Bayer AG Tuesday said it swung to a loss in the second quarter
of the year, as it set aside provisions for settlements related to
its glyphosate-based Roundup herbicide.
The German pharmaceutical and chemical conglomerate said its net
loss for the period was 9.55 billion euros ($11.23 billion) due to
special items for litigations, compared with a profit of EUR404
million a year earlier. Charges included costs for the Roundup
cases as well as provisions for other litigations such as for the
dicamba herbicide, the company said.
Bayer continues to expect total costs of up to $10.9 billion to
settle the tens of thousands of lawsuits related to the Roundup
herbicide and resolve possible future litigations.
Earnings before interest, taxes, depreciation and amortization
before special items rose 5.6% to EUR2.88 billion, compared with
EUR2.73 billion in the same quarter the previous year.
Quarterly sales came in at EUR10.05 billion down from EUR10.71
billion year prior.
Analysts expected sales of EUR10.40 billion and adjusted Ebitda
of EUR2.74 billion, according to consensus estimates provided by
Vara Research.
Bayer lowered its outlook for the year due to the coronavirus
pandemic. It now expects sales to be between EUR43 billion and
EUR44 billion and Ebitda before special items of around EUR12.1
billion, both on a currency-adjusted basis.
Write to Kim Richters at kim.richters@wsj.com
(END) Dow Jones Newswires
August 04, 2020 02:32 ET (06:32 GMT)
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