Bayer said Thursday that it has lowered its 2018 guidance after first-quarter net profit was weighed down by adverse currency swings.
Profit for the quarter fell 6.2% to 1.95 billion euros ($2.34 billion) from EUR2.08 billion a year earlier, while sales fell to EUR9.14 billion from EUR13.24 billion, the company said.
Analysts had forecast net profit of EUR1.53 billion on sales of EUR9.30 billion, according to a FactSet-compiled consensus.
“Negative currency effects held back earnings by around 160 million euros,” Bayer said.
Taking into account prevailing foreign-exchange trends, Bayer lowered its guidance for reported sales and earnings.
The company now expects a slight decline in reported sales to below EUR35 billion, compared with a previous estimate of around EUR35 billion. Bayer also said it expects earnings before interest, taxes, depreciation and amortization to decline by a low single-digit percentage, compared with a previous forecast that it would match 2017’s level.
On a currency- and portfolio-adjusted basis, Bayer said it continues to expect growth in Ebitda before special items and sales.
The company didn’t disclose any new details on its proposed acquisition of Monsantobut said it still expects the deal to close in the first half.
European regulators recently gave the green light for BASF to buy a group of agricultural assets that Bayer is selling to gain approval for the Monsanto deal.
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