Bayer Crop Science said it is lowering its profit outlook for fiscal 2017 due to unexpectedly high channel inventory level of crop protection products in Brazil.
“Despite an encouraging start to the year and continued good growth momentum, Bayer’s Crop Science Division will have to adjust its business forecast for fiscal 2017 … Bayer will be working with its customers to initiate measures aimed at normalizing the situation. This will have a one-time effect of EUR 300 million to EUR 400 million on earnings (EBITDA before special items) for the full year 2017. Appropriate accounting measures are already being taken in the second quarter.”
Germany-based Bayer is also expecting earnings to be additionally impacted by unfavorable currency developments.
Against this background, Bayer said it will be adjusting its full-year forecasts for sales and earnings in the Crop Science and Consumer Health divisions. This will also result in adjustments to the forecasts for Group sales and earnings indicators.