Bayer Net Profit Down in 2nd Quarter; Full-Year Guidance Lowered

By Christopher Alessi Features Dow Jones Newswires

German pharmaceuticals and chemicals company Bayer AG (BAYN.XE) reported an 11% drop in net profit for the second quarter, weighed down by its agrochemical division, while lowering its guidance for the full year.

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Net profit for the period ended June 30 was 1.2 billion euros ($1.4 billion), compared with EUR1.4 billion a year ago, missing analysts' forecast. Analysts had predicted a net profit of EUR1.3 billion, according to a recent poll compiled by Factset.

Bayer said Thursday it expects sales to rise to more than EUR49 billion this year, compared with a previous estimate of around EUR51 billion.

Earnings before interest, taxes, depreciation and amortization, before special items, should now increase by a high-single-digit percentage, down from an earlier projection of a low-teens percentage gain, the company said.

Sales rose by 3% to EUR12.2 billion, helped by its separated specialty plastics business, Covestro, Bayer said.

Write to Christopher Alessi at christopher.alessi@wsj.com

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(END) Dow Jones Newswires

July 27, 2017 02:14 ET (06:14 GMT)