Bayer Posts Third-Quarter Loss on Agriculture Woes--Update
2020年11月3日 - 6:16PM
Dow Jones News
By Ruth Bender
BERLIN -- Bayer AG on Tuesday posted a loss in the third-quarter
as the coronavirus pandemic compounded problems the German chemical
and drug giant has been facing since its acquisition of agriculture
giant Monsanto just over two years ago.
Bayer also said it would need an extra $750,000 on top of a
settlement worth up to $10.9 billion it announced over the summer
to resolve a legal battle with U.S. plaintiffs alleging the Roundup
weedkillers inherited from Monsanto cause cancer. Bayer has
consistently denied that Roundup or its ingredients cause
cancer.
Bayer, the inventor of aspirin, bet big on agriculture with its
$63 billion acquisition of Monsanto in 2018. The move was supposed
to help the German company tap into rising demand driven by rapid
population growth. Instead, it exposed Bayer to open-ended legal
liabilities and a market that has been severely disrupted by the
coronavirus pandemic.
The legal battle with plaintiffs claiming that Roundup and its
active ingredient glyphosate cause cancer sent its share price
falling to record lows. The planned settlement hasn't so far been
finalized. And now the pandemic is hurting a crops-science business
that since the Monsanto integration has grown to just under half
the group's total sales.
Last month, Bayer issued a profit warning for 2021, blaming low
prices for major crops, falling demand for biofuel and tougher
competition in the soy market. Bayer then said it expected to write
down the value of assets in the agricultural business in the "mid
to high-single-digit billion euros" range.
Bayer swung to a net loss of EUR2.74 billion (equivalent to
about $3.2 billion) in the three months ended Sept. 30 from a net
profit of EUR1.04 billion. The company said it had to make non-cash
impairment charges of EUR9.3 billion on various assets in its
agriculture unit, including goodwill. Sales fell 14% to EUR8.51
billion, dragged down mostly by the crops-science unit.
"The impact of the pandemic is placing additional strain on our
Crop Science Division," said finance chief Wolfgang Nickl in a
statement.
In the second quarter, problems related to the Monsanto purchase
had already pushed Bayer to a net loss of nearly $11 billion as the
company set aside money to cover its proposed Roundup settlement
deal.
But the settlement has hit snags. In July, Bayer scrapped a
crucial part of the deal -- a $1.25 billion proposal for resolving
possible future lawsuits since the weedkillers continue to be sold
-- after a federal judge voiced concerns about its structure.
Bayer on Tuesday said finalizing a new proposal protecting it
from future lawsuits would require more time but that a new
solution would probably cost in the range of $2 billion, instead of
$1.25 billion. Investors have been keen to see Bayer finalize the
deal.
In further bad news for Bayer, the California Supreme Court
declined last month to hear an appeal by Bayer seeking to reverse
the first jury Roundup jury verdict that ruled in favor of a former
groundskeeper who said it gave him cancer.
In early morning trade, Bayer shares were trading down 2% in a
broadly higher market going into U.S. election day. Concerns over
the outcome of the settlement, the recent profit warning and
pandemic woes have pushed Bayer shares down over 40% this year so
far, the worst performer in Germany's bluechip DAX index.
Write to Ruth Bender at Ruth.Bender@wsj.com
(END) Dow Jones Newswires
November 03, 2020 04:01 ET (09:01 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
Bayer (TG:BAYN)
過去 株価チャート
から 3 2024 まで 4 2024
Bayer (TG:BAYN)
過去 株価チャート
から 4 2023 まで 4 2024