Bayer sees Q4 non-cash impairments and write-offs of EUR3.3B

Bayer said: “At the Consumer Health and Pharmaceuticals divisions, non-cash impairments and write-offs totaling approximately EUR3.3B are anticipated in the fourth quarter of 2018. At Consumer Health, these primarily concern brands acquired with the Merck & Co. and Dihon businesses as well as some of the goodwill recognized in the balance sheet, totaling some EUR2.7B. In the case of Pharmaceuticals, impairments and write-offs of around 0.6 billion euros are due especially to the decision not to utilize the factor VIII facility that was built in Wuppertal, Germany, and to focus all recombinant factor VIII production in Berkeley, United States. At the Crop Science Division, the focus is on successfully integrating the acquired business. As previously communicated, Bayer expects synergies to deliver annual contributions of 1.04 billion euros, or $1.2B, to EBITDA before special items as of 2022. This figure, which comprises 0.87 billion euros, or $1B, in cost synergies, is included in the contribution target outlined above.”

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