Currency headwinds sap Bayer in Q1

May 3, 2018
Bayer secured regulatory approval for the tie-up with Monsanto from the European Commission in March

German chemicals firm Bayer said Thursday exchange rate headwinds had undermined revenues and profits in the first quarter, but kept its eyes on a planned takeover of US seeds and pesticides maker Monsanto.

Net profits at the Leverkusen-based group fell 6.2 percent year-on-year, to just under 2.0 billion euros ($2.4 billion).

Operating, or underlying profits lost 4.8 percent to reach 2.3 billion euros, on the back of revenues down 5.6 percent at 9.1 billion.

Sales fell at all the group's divisions—prescription drugs, over-the-counter medicines, crop science and animal health—although Bayer said that adjusting for currency effects sales of pharmaceuticals and veterinary products had in fact increased.

Meanwhile operating profits were burdened by one-off costs linked to the group's mammoth buyout of Monsanto, one of the largest in German corporate history with a value of around $62.5 billion.

Chief executive Werner Baumann hailed "major progress with the proposed acquisition" in the first quarter.

Bayer secured regulatory approval for the tie-up from the powerful European Commission in March, trading away large chunks of its existing seeds and pesticides business to rival BASF in exchange.

And the Wall Street Journal reported in April that US authorities would also green-light the deal.

Executives still hope to complete the merger, which some environmentalists and politicians warn would create an over-mighty giant dominating global agriculture, before the end of June.

Looking ahead to the full year, Bayer forecast a "low-single-digit percentage" decrease in sales mainly driven by currency effects, to below 35 billion euros, with a similar decline in underlying profits before special items.

Explore further: Bayer books bumper Q3 as Monsanto merger waits in wings

Related Stories

Bayer books bumper Q3 as Monsanto merger waits in wings

October 26, 2017

German chemicals and pharmaceuticals giant Bayer said Thursday it booked a huge windfall gain in the third quarter, but the group is still waiting for approval of its mega-merger with US seeds and pesticides maker Monsanto.

EU to greenlight Bayer-Monsanto takeover: source

March 20, 2018

The EU is set to greenlight the proposed blockbuster buyout of US agri-giant Monsanto by German chemical firm Bayer after securing concessions in order to win approval, sources close to the matter said on Tuesday.

SAP more ambitious after soaring Q1 profits

April 24, 2018

German business software maker SAP lifted its full-year forecasts Tuesday, as it hailed a lift-off in profits in the first quarter and saw new opportunities after buying a US software firm.

Bayer says bottom line down in Q1

April 30, 2015

German chemicals and pharmaceuticals giant Bayer, maker of Aspirin, said Thursday that net profits were down in the first three months, but it nevertheless raised its full-year forecasts due to the positive effects of the ...

Bayer stock plunges on profit warning

June 30, 2017

Shares in German chemicals and pharmaceuticals giant Bayer plummeted in Frankfurt Friday, after it issued a profit warning over weak performance at its agrochemical and over-the-counter medicines units.

Recommended for you

Matter waves and quantum splinters

March 25, 2019

Physicists in the United States, Austria and Brazil have shown that shaking ultracold Bose-Einstein condensates (BECs) can cause them to either divide into uniform segments or shatter into unpredictable splinters, depending ...

How tree diversity regulates invading forest pests

March 25, 2019

A national-scale study of U.S. forests found strong relationships between the diversity of native tree species and the number of nonnative pests that pose economic and ecological threats to the nation's forests.

Study suggests trees are crucial to the future of our cities

March 25, 2019

The shade of a single tree can provide welcome relief from the hot summer sun. But when that single tree is part of a small forest, it creates a profound cooling effect. According to a study published today in the Proceedings ...


Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.