Bayer Lifts 2022 Guidance But Impairments, Charges Weigh on 2Q Earnings
August 04 2022 - 2:41AM
Dow Jones News
By Cecilia Butini
Bayer AG on Thursday lifted its guidance for the full year after
a sales beat in the second quarter and a boost from positive
currency effects, though it posted a net loss for the quarter and
said it took on some impairments and litigation-related
charges.
The German pharmaceutical-and-agricultural company posted a net
loss of 298 million euros ($303 million) for the second quarter,
narrowed from a loss of EUR2.34 billion the year prior, when
profits were affected by the setting aside of provisions to
continue litigation on its Roundup weedkiller.
Earnings before interest and taxes swung to EUR169 million from
a loss before interest and taxes of EUR2.28 billion the year prior.
Bayer said the metric was hit by net special charges of EUR2.11
billion including impairment losses related to its agricultural
division. Other special charges were related to continuing
litigation and restructuring measures.
Sales for the quarter beat consensus expectations, rising to
EUR12.82 billion from EUR10.85 billion the year prior, mainly
driven by gains in its Crop Science and Consumer Health division,
Bayer said.
The company lifted its 2022 guidance, saying it now expects to
generate sales of between EUR47 billion and EUR48 billion, and
earnings before interest, taxes, depreciation and amortization
before special items of EUR12.5 billion, having previously guided
for around EUR12 billion.
Write to Cecilia Butini at cecilia.butini@wsj.com
(END) Dow Jones Newswires
August 04, 2022 02:26 ET (06:26 GMT)
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