BERLIN, Nov. 13 (Xinhua) -- Bayer AG confirmed its annual guidance for 2018 on Tuesday despite witnessing a steep fall in net profits during the third quarter (Q3) of the year.
According to earnings data published by the German chemicals giant, group revenue at Bayer rose by a currency- and portfolio-adjusted rate of 1.9 percent to 9.905 billion euros (11.1 billion U.S. dollars) in Q3. While earnings before interest and taxes (EBIT) after special net gains more than tripled to 4.423 billion euros, however, net income slumped by more than a quarter (25.6 percent) to 2.886 billion euros.
Bayer explained on Tuesday that the recorded EBIT gains were "primarily" a result of pre-tax divestiture proceeds of around 3.9 billion euros from the sale of Crop Science businesses to rival BASF. The Leverkusen-based company had agreed to this measure earlier in order to obtain approval from international antitrust regulators for its ongoing merger with U.S. agrochemical producer Monsanto.
In spite of the fall in quarterly net profits, a statement by Bayer defended what it described as a "good operational performance in a challenging environment." The DAX-listed company further emphasized that Q3 marked the "first time since the closing of the Monsanto acquisition that the new business has been included for a full quarter", adding that the integration thereof was "now successfully underway."
As a consequence, Bayer Chairman of the Board of Management Werner Baumann confirmed the adjusted Group outlook for the full year of 2018. "Crop Science posted a substantial rise in earnings due to the acquisition, while Pharmaceuticals saw encouraging development. Consumer Health, for its part, posted higher sales on a currency- and portfolio-adjusted basis", a statement by Baumann read.
As already forecast earlier, Bayer expects to record sales of more than 39 billion euros in 2018 which would correspond to a mid-single-digit percentage increase on a currency- and portfolio-adjusted basis. (1 euro = 1.12 U.S. dollars)
