(Reuters) – Bayer AG faces a double hit from a higher legal bill for herbicide-related claims Roundup and 9.25 billion ($ 10.82 billion) in write-downs on farms, much of it related to Monsanto the store.
The company said that write-downs, driven by weaker demand from farmers due to low biofuel prices, plus an increase of about $ 750 million in the cost of settlement terms with US plaintiffs over Roundup, resulted in a loss before interest and taxes in the third quarter .
Bayer ended up in disputes over Roundup, based on the herbicide glyphosate, as a result of the 2018 acquisition of Monsanto for approximately $ 63 billion, making it the world's largest supplier of seeds. and pesticides.
“The impact of the (coronavirus) pandemic puts further strain on our Department of Harvest Science. We are also facing negative currency effects, says CFO Wolfgang Nickl.
Mr. Nickl said that a massive depreciation of the Brazilian real weighs heavily on operations in the world's second largest agricultural market. thirds of the write-downs were due to currency and interest rate effects.
Bayer on 30 September had forecast write-downs in the medium- and high-digit billions of agricultural assets and warned of a slight decline in 2021
Bayer signed a $ 11 billion contract with U.S. plaintiffs' attorneys in June, but a judge later reached a side agreement on future cases yet to be filed, known as a class plan.  Addressing these concerns will prove to be about $ 750 million more expensive, Bayer said on Tuesday. llars, an increase over the original cost of $ 1.25 billion.
Bayer shares decreased 0.6% at 0850 GMT, marking a 22% loss since Bayer first reported write-downs and a likely decline in earnings in 2021 on 21 September. 30.
"This situation confirms our belief that Crop Science is a company with low visibility," says Jean-Jacques Le Fur, an analyst at broker Bryan Garnier. He reiterated a "sell" recommendation, citing uncertain Roundup litigation costs.
The fees offset more than the combined profits booked during the quarter from the sale of its Animal Health business to Elanco and the divestment of a stake in the industrial park operator Currenta
This resulted in a net loss of € 2.7 billion compared to an average analyst forecast of 1 billion euros in net profit.
Bayer said that 88,500 of the 125,000 glyphosate claims in the class settlement had agreed in principle and that it hoped to make significant progress in the coming months. Catalog