Bayer Lifts 2022 Guidance But Impairments, Charges Weigh on 2Q Earnings -- Update
04 August 2022 - 5:24PM
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. The company also said that
it took an additional provision of EUR694 million in the second
quarter due to ongoing settlement negotiation with the U.S. state
of Oregon on an environmental case.
Earnings before interest, taxes depreciation and amortization
before special items--a closely-watched metric--rose to EUR3.35
billion from EUR2.58 billion the year prior, aided by positive
currency effects, Bayer said.
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,
and aided by positive currency effects, Bayer said.
The company lifted its 2022 guidance, saying it now expects to
generate sales of between EUR47 billion and EUR48 billion, having
previously guided for approximately EUR46 billion. Earnings before
interest, taxes, depreciation and amortization before special items
of EUR12.5 billion, having previously guided for around EUR12
billion.
Bayer's agricultural division benefited by an improvement in
market environment, with double-digit percentage growth in Latin
America and Europe, Middle-East and Africa, Bayer said, adding that
herbicides posted the strongest growth. Sales in the company's
consumer health division rose by 6.8% in the quarter across all
regions and nearly all categories, Bayer said.
Write to Cecilia Butini at cecilia.butini@wsj.com
(END) Dow Jones Newswires
August 04, 2022 03:09 ET (07:09 GMT)
Copyright (c) 2022 Dow Jones & Company, Inc.
Bayer Aktiengesellschaft (PK) (USOTC:BAYRY)
Historical Stock Chart
From Sep 2024 to Oct 2024
Bayer Aktiengesellschaft (PK) (USOTC:BAYRY)
Historical Stock Chart
From Oct 2023 to Oct 2024