Bayer Cuts 2023 Outlook Amid Slump in Prices for Roundup

Bayer AG cut its outlook for the year amid persistently low prices for agriculture products, including the controversial weedkiller Roundup.

(Bloomberg) — Bayer AG cut its outlook for the year amid persistently low prices for agriculture products, including the controversial weedkiller Roundup.

The German company now expects earnings of €11.3 billion ($12.5 billion) to €11.8 billion before interest, taxes, depreciation and amortization in 2023, according to a statement on Monday. That’s down from a previous range of €12.5 billion to €13 billion.

Core earnings per share will probably be in the range of €6.20 to €6.40, down from the previous forecast of €7.20 to €7.40, according to the statement. Bayer also expects to record a goodwill impairment of about €2.5 billion, mostly based on the glyphosate business, it said.

The gloomier outlook comes as new Chief Executive Officer Bill Anderson tries to resurrect the fortunes of the sprawling company, which has three divisions devoted to agriculture, pharmaceuticals and consumer health. Anderson’s predecessor, Werner Baumann, spent $63 billion last decade on crops giant Monsanto Co., which saddled Bayer with massive legal headaches in the US.

Bayer also reported preliminary second-quarter results that missed estimates, with sales of €11 billion compared to a €12.2 billion estimate by analysts in a Bloomberg survey. Earnings per share of €1.20 trailed the €1.43 average estimate.

Bayer’s American depositary receipts fell as much as 4.6% in New York.

Anderson, a Texas-born former head of pharma at Swiss health-care giant Roche Holding AG, has pledged to reshape the work culture at Bayer and said he doesn’t believe most shareholders want a break up of the company.

(Updates with second-quarter earnings, shares starting in fifth paragraph)

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