BERLIN (Reuters) – Weak demand for glyphosate-based herbicides led Bayer to cut its full-year outlook to 48.5 billion to 49.5 billion euros ($53.7 billion to $54.8 billion) from an earlier 51 billion-to-52 billion euro forecast and announce a 2.5 billion euro write-down relating to its glyphosate business.
The company said on Monday that, partly as a result of weak glyphosate demand it expected an operating result of 11.3 billion to 11.8 billion euros – down from 12.5 billion to 13.0 billion euros – and free cash flow would come in at zero, down from 3 billion euros.
“Based on the anticipated market development, in particular with respect to the glyphosate business, Bayer also expects to record a goodwill impairment of approximately 2.5 billion euros,” it said, as a result of which second-quarter net income would come in at minus 2 billion euros.
($1 = 0.9032 euro)
(Reporting by Thomas Escritt; editing by Jonathan Oatis)