Tuesday , March 2 2021

Bayer AG wants to keep dividends stable, to share gaps due to glyphosate lawsuits in the United States



The Bayer stock market chart for agrochemicals in the United States has faced even greater demands on glyphosate than previously known. Around 9,300 applicants were filed in Leverkusen in late October, Werner Baumann, executive director of Bayer, announced on Tuesday. It was about 600 more than at the end of August. Baumann expects further growth.

The plaintiffs accused US company Monsanto of Bayer of purchasing a carcinogen with glyphosate and insufficient information on harm. Baumann opposed to: "Glyphosate is a very reliable product in terms of chemistry, mechanism of action."

In the summer of California, the first glyphosate decision took titles claiming $ 289 million from a cancer patient. Later the fine was reduced to 78 million USD. Fearing the enormous total payments, many investors pulled the rolling stock and sold their shares – Bayer's stock price fell.

Bayer hunting: Like the US Justice Shatters Bayer business model

The market value has fallen by more than half since 2015

Bayer's stock market chart continued to decline on Tuesday, with a five-year low, despite Bayer's quarterly outturn, exceeding expectations and confirming its forecast for 2018. Recently, the shares traded 1.3 percent minus 67.70 euros. In the summer of 2015, the stock was quoted at 142 euros more than twice as high.

In this process, the company wants to appeal and prepare for the currently relevant articles. According to the judgment, the number of plaintiffs has increased – other people who saw themselves as injuries to glyphosate also went to court. The US petition industry has long discovered glyphosate.

The outcome of the appeal is only possible in 2021 – Baumann excludes the comparison

Bayer's manager Baumann emphasized that it was only a first instance judgment that was not binding on other procedures. "We think this judgment is wrong." The Director-General hopes that the result of the designation will be by 2021 at the latest. At the beginning of next year, glyphosate cases most likely to be initiated at first instance in US courts.

Baumann continues to feel good about glyphosate, but in some cases he discontinues it. However, in the future, it might be that small amounts should be paid for the whole complex, for example, in order to avoid higher legal and legal costs associated with continuing a legal dispute.

Applicants, environmentalists, small owners and various scientists believe that the chemical is hazardous to nature and health. The World Health Organization (WHO) classifies glyphosate in 2015 as a "potential human carcinogen", possibly a carcinogen.

Bayer points to 800 studies on glyphosate – but investors are still nervous

Baumann emphasized that, according to the WHO publication, the health authorities in the EU, Japan and South Korea, as well as other countries, have again become active and are not re-using glyphosate as a carcinogen. According to Baumann, there are more than 800 studies showing that glyphosate is safe if used properly.

The Director-General also presented quarterly data that was shared. Profit before interest, taxes, depreciation and amortization (Ebitda) as well as special items in the third quarter of 2018 was EUR 2.2 billion. At the bottom, the Dax Group earned about 2.9 billion euros, though less, after nearly 3.9 billion euros in the prior year. However, a year ago Bayer also benefited from a number of unexpected effects.

Bayer boosts sales to Monsanto by about € 10 billion

In the last third quarter, with Bakery purchasing Bayer, its sales increased by almost a quarter to EUR 9.9 billion.

Bayer's quarterly turnover for agricultural chemicals business (Crop Science) was 3.7 billion euros, of which 2.2 billion euros were generated. Retire drug business, such as Xarelto anticoagulant, increased, while sales of non-prescription drugs and livestock dropped euros than before. Below, Bayer will see growth as a whole, with a total turnover of over € 39bn in 2018.

Despite the big debt, the group wants Dividends for 2018 remain at least at the level of the previous year.

la / dpa


Source link