Bayer AG Friday warned it would take an earnings hit this year due to surprisingly high inventories at its Brazil operations, negative currency effects and a weak performance at its consumer health division.
Bayer said adjusted earnings before interest, taxes, depreciation and amortization would be between 300 million-400 million euros ($342.4 million-$456.6 million) lower, due to high stocks of crop protection products at the end of the harvest season in Brazil.
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"Bayer is also expecting earnings to be additionally impacted by unfavorable currency developments," it added.
In addition, business performance at its consumer health division "is weaker than previously expected," Bayer said.
Other divisions, including pharmaceuticals and Covestro are strong, while its animal health business is in line with expectations, Bayer said.
Bayer said it will adjust its 2017 forecasts for sales and earnings to be published with second quarter results.
--Write to Monica Houston-Waesch at firstname.lastname@example.org
(END) Dow Jones Newswires
June 30, 2017 04:08 ET (08:08 GMT)