Bayer Crop Science Quarterly Sales Dip

Bayer reported lower first-quarter sales for its Crop Science business, hurt by currency exchange rates.

Sales of the agricultural business (Crop Science) came in at 2.861 billion euros, compared with 3.12 billion euros a year ago — however, sales were level with the prior-year quarter on a currency- and portfolio-adjusted basis.

“We grew in three out of four regions on a currency-adjusted basis, and this performance almost offset the decline in Europe/Middle East/Africa,” Werner Baumann, Chairman of the Board of Management, said. Growth was particularly strong in Asia/Pacific, where sales increased 10.4 percent (Fx adj.). Sales in Latin America advanced by 4.8 percent (Fx adj.), buoyed by stronger demand for fungicides and insecticides in Brazil and the continued normalization of inventories there.

A decline in other operating income and a higher cost of goods sold were among factors that held back earnings. Lower expenses for research and development and for general administration had an opposing effect.

Insecticides and Other (Seeds & Traits) delivered positive performance, registering growth of 8.0 percent (Fx & portfolio adj.) and 12.9 percent (Fx & portfolio adj.), respectively. By contrast, sales declined by 14.3 percent (Fx & portfolio adj.) at Environmental Science due to lower product deliveries to the purchaser of the consumer business. Adjusted for currency and portfolio effects, sales were also down at SeedGrowth (8.4 percent), Herbicides (6.6 percent), Vegetable Seeds (6.2 percent) and Fungicides (2.0 percent).

“We have made good headway strategically and have made major progress with the proposed acquisition of Monsanto,” Baumann said.

The European Commission and other regulators, including those in Brazil, China and Russia, have approved the transaction this year. This means that Bayer has now obtained two-thirds of the around 30 anti-trust approvals it seeks. The conditions imposed by the European Commission and other regulators include in particular the divestment by Bayer of various Crop Science businesses. The company reached agreements to this effect with BASF in October 2017 and April 2018. The Monsanto acquisition remains subject to customary closing conditions, including receipt of required regulatory approvals. Bayer is working closely with the authorities around the world with the goal of closing the transaction in the second quarter of 2018.

Looking ahead, Bayer has confirmed the currency-adjusted forecasts published in February for operating performance. The company continues to expect 2018 sales to increase by a low- to mid-single-digit percentage on a currency- and portfolio-adjusted basis. As before, it aims to increase EBITDA before special items and core earnings per share by a mid-single-digit percentage on a currency-adjusted basis. Taking into account the exchange rates as at March 31, 2018, reported sales would decline in 2018 overall by a low-single-digit percentage (previously: remain at the prior-year level). In absolute terms, sales would now come in at below 35 billion euros (previously: around 35 billion euros). EBITDA before special items would decline by a low-single-digit percentage (previously: match the prior-year level). Core earnings per share would come in at the prior-year level, as previously forecast.

Topics: ,

Leave a Reply

Agrichemicals

Agrichemicals

Bayer: Disappointing Verdict Requires In-Depth Analysis

Bayer will assess the verdict’s consequences and potential legal options.

Agrichemicals

EU Court Backs Ban on Three Neonicotinoids

General Court of the European Union said it "confirms the validity of the restrictions introduced at EU level in 2013 clothianidin, thiamethoxam and imidacloprid because of the risks those substances pose to bees."

Herbicides

Formulation Technology Matters with High-Activity Sulfonylurea Herbicides

Herbicide formulations and sprayer clean-out are top of mind for many farmers, applicators, and retailers because of issues with dicamba

Agrichemicals

Tight Supply of Chinese Glycine Pushes Up Glyphosate Prices

China's announcement that it will conduct further pollution inspections in 2018 and 2019 is constraining the supply of glycine, the main intermediate for glyphosate production, according to market intelligence firm CCM.

Agrichemicals

Bayer Unveils Executive Leadership Team for Crop Science

Liam Condon will lead division; Brett Begemann will become Head of Commercial Operations (Chief Operating Officer).

Agrichemicals

Monsanto Execs to Step Down After Bayer Deal Closes

Monsanto Co. Chairman and Chief Executive Officer Hugh Grant announced his intent to leave Monsanto at the closing of the acquisition of Monsanto by Bayer AG.

Agrichemicals

FMC Quarterly Results Soar on DuPont Acquisition

FMC Corp. reported its Agricultural Solutions business posted first-quarter 2018 revenue of $1.1 billion, an increase of 109 percent year-over-year.

Agrichemicals

Sumitomo Launches Fungicide for Bananas

Rapid adoption of Powmyl is expected for Black Sigatoka control programs on banana plantations throughout Latin America.

Bayer
Agrichemicals

EU Approves BASF Deal to Buy Bayer Assets

The European Commission said Monday that it has approved the acquisition of parts of Bayer AG’s crop-science business by BASF

Agrichemicals

ADAMA European Sales Drop, Procurement Costs Climb

The extended winter in Europe has caused a delay to the start of the season, impacting demand in the region.

Bayer-Crop
Insecticides

Bayer on Neonicotinoid Ban: ‘A Sad Day’ for European Farmers

Today’s decision by the EU Member States to restrict the use of certain neonicotinoids to applications in permanent greenhouses is

Agrichemicals

China’s Glyphosate Market Lackluster in April, as Raw Material Prices Climb

Chinese glyphosate technical market was lackluster in April as overseas markets entered the low season. In the meantime, raw material prices kept rising and glyphosate technical producers suffered mounting pressure.

Insecticides

Syngenta: Neonicotinoid Decision Takes European Farming in the Wrong Direction

Today’s decision by Member States to back the Commission’s proposal for further restrictions of neonicotinoids is disappointing, but not unexpected,

Soybean souting mature
Agrichemicals

Missouri Dept. of Ag Extends Dicamba Cut-off Date

Delayed plantings due to cold, wet spring prompts action in Missouri.

Africa/Middle East

Zimbabwe’s New Government Pushes to Strengthen Agriculture

With Mugabe out, the push for increased agricultural production by the new government has opened new business opportunities for planting seed material suppliers and agchem manufacturers.

Agrichemicals

How WTO Agreements Affect China’s Pesticide MRL Rules

ChemLinked's Fang Lin reports on China’s response to the World Trade Organization's Technical Barriers to Trade (TBT)/Sanitary and Phytosanitary Measures (SPS) notifications.

Americas

ADAMA to Launch Soybean Fungicide in Brazil

Global crop protection company ADAMA has announced that is ready to launch its distinctive fungicide, CRONNOS, in Brazil, the world’s

Midwest wheat growers
Agrichemicals

Kline: Insecticide Market for Grain Storage Growing Steadily

Aluminum phosphide is the predominant active ingredient used for treatments, accounting for over 50% of the total sales in 2017.

Adjuvants

Monsanto Collaborates with Adjuvants Unlimited

Monsanto Company announced today that it has collaborated with Adjuvants Unlimited, LLC to develop the first-ever agricultural sprayer system cleaner designed to deactivate dicamba.

Latest News

Agrichemicals

Bayer: Disappointing Verdict Requires In-Depth Analysis

Bayer will assess the verdict’s consequences and potential legal options.

Seeds and Traits

BASF Releases Provisia Rice System for 2018 Season

Provisia is first herbicide tolerant system in the U.S. rice market since the Clearfield Production System was released 15 years ago.

Agrichemicals

EU Court Backs Ban on Three Neonicotinoids

General Court of the European Union said it "confirms the validity of the restrictions introduced at EU level in 2013 clothianidin, thiamethoxam and imidacloprid because of the risks those substances pose to bees."

Seeds and Traits

Corteva Agriscience, Monsanto in Licensing Deal on Trait for Insect Control

Corteva Agriscience will receive a license to stack Monsanto’s Corn Rootworm III and MON89034 traits with Corteva Agriscience’s insect control traits.

Herbicides

Formulation Technology Matters with High-Activity Sulfonylurea Herbicides

Herbicide formulations and sprayer clean-out are top of mind for many farmers, applicators, and retailers because of issues with dicamba