Bayer to cut profit view on consumer health setback

FRANKFURT: Bayer said on Friday it would cut its full-year earnings forecast due to high inventories at crop protection distributors in Brazil and a weaker-than-expected consumer health business.

“At the end of the harvest season in Brazil, regular stock-taking revealed an unexpectedly high channel inventory level of crop protection products,” the company said in an unscheduled statement.

This would result in a one-time hit of 300-400 million euros ($342-$456 million) on full-year earnings before interest, taxes, depreciation and amortisation. Bayer, in the midst of seeking regulatory approval for its $66 billion takeover of US seeds group Monsanto (MON.N), said it would adjust its business outlook when it publishes second quarter results, due on July 27, without providing details. The company also cited unfavourable currency developments but added its pharmaceuticals division and chemicals business Covestro were still performing strongly, while business at its animal health unit was line with expectations. — Reuters