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

Adjuvants

Clariant, Eastman Enter Distribution Agreement

Clariant, a world leader in specialty chemicals, and Eastman Chemical Company, a global advanced materials and specialty additives company, announced

Agrichemicals

What Does a Traceability Software Product Do in Agribusiness?

Editor’s note: This article was originally published on LinkedIn. I’ve been traveling over the last one week, on-boarding our first large

Agrichemicals

University of Utah Recognizes Aqua-Yield/Nano Institute Partnership in New Annual Report

In a newly-published annual report, the University of Utah’s Center for Technology & Venture Commercialization (TVC) touts the first-of-its-kind collaboration

Corn closeup
Herbicides

Bayer Posts More Than 300 Glyphosate Safety Studies Online

Today, Bayer marks the first anniversary of its Transparency Initiative, designed to enhance trust in the science behind crop protection

Agrichemicals

UPL Mauritius to Acquire Bioquim Group

UPL Mauritius, a subsidiary of UPL, India is set to acquire 100% shares of Bioquim Group which includes companies based

Parry-lab
Agrichemicals

Crop Protection: How to Lead Innovation in R&D Teams (Part 5)

Editor’s note: This is the fifth of seven articles in a series on Strategic R&D Management in AgChem and BioScience

Aphids Cotton
Agrichemicals

Nichino America Gets EPA Approval for Insecticide

PQZ insecticide from Nichino America, Inc. has been granted a U.S. EPA label expansion for food crop use, the company

Agrichemicals

Crystal Crop Protection Acquires Three Syngenta Brands

New Delhi-headquartered Crystal Crop Protection, a firm backed by private equity firm Everstone Capital, has acquired three insecticide and fungicide

Agrichemicals

Bayer to Offer Access to Glyphosate Studies

Bayer will soon include safety study summaries of glyphosate on its dedicated transparency platform. This next step will mark the first

Agrichemicals

What to Expect for U.S. Dicamba Use in 2019

Long-awaited news from U.S. Environmental Protection Agency on its decision to extend the registration for the new dicamba technologies arrived Halloween

Agrichemicals

Bayer: Study Shows its Soybeans Reduce Environmental Impact

Results from a five-year peer-reviewed study on Intacta RR2 PRO™ soybeans planted in South America were recently published, indicating that

Jay-Vroom-Covers-featured-image
Agrichemicals

A Salute to Retired CropLife America President Jay Vroom

Editor’s note: It goes without saying that crop protection manufacturing is a central point of interest to readers of this

US-China-Trade-War
Agrichemicals

Expect Herbicide Price Hikes in 2019

Herbicide price hikes across the board are an inevitability for 2019, as the entire U.S. ag community deals with a

Agrichemicals

Corteva to Launch New Fungicide, Starting in Asia Pacific

Corteva Agriscience announced Adavelt active as the new brand name for a novel fungicide that will offer farmers curative and

wheat-field
Agrichemicals

Albaugh Discusses 2018 Trials of CoAXium Wheat System

Albaugh announced that the CoAXium Wheat Production System driven by Aggressor herbicide exceeded expectations in 2018 performance evaluation trials, demonstrating

Agrichemicals

FMC Launches Insecticide/Fungicide

FMC Corp. has launched Ethos 3D insecticide/fungicide, formulated specifically for the novel 3RIVE 3D in-furrow application system that converts traditional

Corn-field
Herbicides

The U.S. Battle over Glyphosate Has ‘Old World’ Roots

Although it’s been in use since 1974, glyphosate has come under intense attack here in the U.S. just recently, writes

Kenya-Agriculture
Africa/Middle East

Kenya’s Crop Protection Industry Fears ‘Dire Consequences’ of New Pesticides Tax

The agrichemcials industry in Kenya is up in arms over a decision by the government to impose a 16% value-added

Agrichemicals

U.S. EPA Renews Dicamba Label, with New Restrictions

Long-awaited news from U.S. EPA came on the evening of Oct. 31 that it has decided to renew the label

Latest News

Adjuvants

Clariant, Eastman Enter Distribution Agreement

Clariant, a world leader in specialty chemicals, and Eastman Chemical Company, a global advanced materials and specialty additives company, announced

Agrichemicals

What Does a Traceability Software Product Do in Agribusiness?

Editor’s note: This article was originally published on LinkedIn. I’ve been traveling over the last one week, on-boarding our first large

Agrichemicals

University of Utah Recognizes Aqua-Yield/Nano Institute Partnership in New Annual Report

In a newly-published annual report, the University of Utah’s Center for Technology & Venture Commercialization (TVC) touts the first-of-its-kind collaboration

Asia

China Could Subsidize Agribusiness Buying in Trade Truce

With a trade truce delaying escalation of tariffs between the U.S. and China into March, there is an opportunity for

Asia

Report: U.S. Farmers Still Planning Fewer Soybeans in 2019 Despite Promise of China Trade Deal

When President Donald Trump was having the highly-anticipated dinner with China’s President Xi Jinping at the G20 summit, farmers in