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

The Verdict on Dicamba (So Far) in 2018

Does 605 official dicamba-related injury investigations and/or approximately 1.1 million acres of dicamba-injured soybean constitute a problem for U.S. agriculture?

Agrichemicals

Platform Confirms Arysta Sale to UPL, to Change Name

Platform has signed a definitive agreement to sell Arysta LifeScience Inc. to UPL Corporation Ltd. for $4.2 billion in cash, subject to customary closing adjustments Closing

Asia

Crop Protection Key to Doubling Indian Grower Income – Report

Despite all its achievements, Indian agriculture is still grappling with challenges like high monsoon dependency, unpredictable weather patterns, reduction in arable land, low per hectare yield, and lower farmer incomes.

Agrichemicals

Hemani Industries Launches Branded Formulation Division

Hemani Industries Limited, serving international agrichemical customers for more than three decades, has launched its branded formulation division to serve

Agrichemicals

Considering Cuba: Opportunities and Challenges for Ag Input Suppliers

As Cuba attempts to boost its production of food products for domestic consumption, it is expected to gradually increase use and import of chemical inputs.

Adjuvants

Exosect Grants Monsanto License for Formulation Product

UK-based Exosect Ltd. announced it has granted Monsanto Company a license to use its Entostat technology for the delivery of select agricultural biologicals as seed treatments.

Herbicides

HELM Agro US Acquires BASF Herbicide

HELM Agro US, Inc. has signed an agreement to acquire EXTREME herbicide from BASF Corp. EXTREME provides excellent burndown and

India-crop-protection-application
Agrichemicals

UPL to Acquire Arysta for Over $4 Billion

Deal Street Asia said the deal could be announced as early as this week.

Agrichemicals

India’s Crystal Crop Protection Launches Seven Products

Crystal Crop Protection launches new herbicides, fungicides, and insecticides in India.

Adjuvants

Sapec Agro Business Enters Adjuvant Sector with SDP Acquisition

Sapec Agro Business has announced the acquisition of French company SDP, through its subsidiary Tradecorp. The acquisition of SDP, which

ChemChina
Agrichemicals

ChemChina, Sinochem Merger Imminent

Merger believed to be one of the Chinese government’s conditions for its support of ChemChina’s $49 billion takeover of Swiss agrichemicals giant Syngenta AG.

Agrichemicals

AMVAC Names Eilers Managing Director

Eilers will be responsible for AMVAC’s international business.

Agrichemicals

Atticus Snaps Up Tacoma Ag, Expands Generics Portfolio

This strategic acquisition complements and expands Atticus’ product offerings, particularly in the herbicide category.

Agrichemicals

Monsanto and Corteva Agriscience Expand Licensing Agreement for Roundup Ready 2 Xtend Technology

Monsanto Company and Corteva Agriscience, Agriculture Division of DowDuPont, announced the companies have reached an agreement on an expanded license

Africa/Middle East

Eurofins Adds Field Base and Two Satellite Bases in Morocco

New for 2018 is EAS Groups field base in Morocco – from the main facility in Meknes, based in the

Agrichemicals

BASF Submits Dossiers for Two Herbicides

BASF announced it has submitted the regulatory dossier for Luximo herbicide in the European Union and in Australia, and for Tirexor herbicide in Australia.

Wheat
Agrichemicals

Sumitomo, BASF Submit Registration Application for Fungicide in EU

Pavecto differs from existing QoI fungicides because it controls pathogens that have developed resistance towards strobilurin fungicides currently available on the market.

Americas

AMVAC Acquires Bayer’s Bromacil Business

The assets being purchased include the Bromacil trademarks and product registrations for sale of Hyvar and Krovar in the USA and Canada.

Agrichemicals

Platform: In Talks with Arysta’s Potential Acquirer

A consortium including UPL Ltd. is the company in exclusive talks to acquire the Bill Ackman-backed Arysta, which Bloomberg said could fetch more than $4 billion including debt.

Latest News

Agrichemicals

The Verdict on Dicamba (So Far) in 2018

Does 605 official dicamba-related injury investigations and/or approximately 1.1 million acres of dicamba-injured soybean constitute a problem for U.S. agriculture?

Agrichemicals

Platform Confirms Arysta Sale to UPL, to Change Name

Platform has signed a definitive agreement to sell Arysta LifeScience Inc. to UPL Corporation Ltd. for $4.2 billion in cash, subject to customary closing adjustments Closing

Asia

Crop Protection Key to Doubling Indian Grower Income – Report

Despite all its achievements, Indian agriculture is still grappling with challenges like high monsoon dependency, unpredictable weather patterns, reduction in arable land, low per hectare yield, and lower farmer incomes.

Asia

Ning Replaces Ren as Syngenta Board Chair

Jianxin Ren, Chairman of the Board of Directors of Syngenta AG, has retired from the company's board.

Agrichemicals

Hemani Industries Launches Branded Formulation Division

Hemani Industries Limited, serving international agrichemical customers for more than three decades, has launched its branded formulation division to serve