Bayer on Wednesday adjusted its 2018 guidance to reflect the acquisition of Monsanto as it reported a sharp decline in second-quarter earnings.
Net profit for the quarter was 799 million euros ($925.1 million) down from EUR1.22 billion a year earlier, largely due to the deconsolidation of Covestro, which now reports as a separate company, Bayer said.
Sales rose 8.8% to EUR9.48 billion from a restated figure of EUR8.71 billion in the second quarter last year.
The German conglomerate issued new financial guidance to reflect the Monsanto acquisition and the divestment of several businesses, including its vegetable-seeds unit.
“As the acquisition of Monsanto closed later than anticipated, Bayer’s 2018 earnings will be lower than it had projected in its February forecast due to the seasonality of Monsanto’s business,” the company said.
Core earnings per share should be between EUR5.70 and EUR5.90, compared with a restated 2017 figure of EUR6.64 a share, Bayer said.
However, the company said it expects 2018 sales of more than EUR39 billion, compared with a previous estimate of below EUR35 billion. Monsanto should contribute sales of around EUR5 billion to the group total, Bayer said.
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