Kawundo.com
By Ludwig Burger and Patricia Weiss
FRANKFURT (Reuters) -Bayer on Tuesday lowered its full-year operating earnings guidance and took billions in write-downs on agricultural markets in Latin America, becoming the latest maker of farming supplies to be burdened further by low demand.
The German group said it now expects to generate earnings before interest, taxes, depreciation and amortisation (EBITDA), adjusted for special items and the impact of currency swings, of between 10.4 billion euros ($11.1 billion) and 10.7 billion euros, down from a previous forecast of 10.7-11.3 billion euros.
The group’s July-to-September EBITDA, adjusted for one-off items, fell almost 26% to 1.25 billion euros, missing the average analyst estimate of 1.31 billion euros posted on the company’s website, as the company cited weak agricultural markets in Latin America.
The agriculture unit of domestic rival BASF last month reported a plunge in earnings as lower prices and weak overseas currencies outweighed higher volumes.U.S. agrichemicals competitor Corteva last week reported a larger-than-expected loss, also hurt by lower prices, leading the company to cut its full-year sales outlook.
Bayer added that special charges of 4.1 billion euros, mainly from write-downs on intangible assets in the Crop Science division, resulted in a quarterly net loss of 4.18 billion euros, compared with a loss of 4.57 billion euros a year earlier.
It confirmed its previous currency-adjusted guidance for 2024 sales and earnings per share before certain items.
($1 = 0.9401 euros)
(Reporting by Ludwig Burger, Editing by Rachel More)
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