Chemical company Bayer reports billions in losses for the second quarter of this year, not caused by the coronavirus pandemic but due to court cases in the United States over glyphosate, RoundUp, and dicamba.
The Bayer Group booked €12.5 billion in ‘‘special expenses’’ in the past quarter. As a result, the EBIT operating result fell to minus €10.78 billion.
At the end of June, Bayer announced settlements in US damage claims regarding glyphosate, dicamba, and polychlorinated biphenyls (PCBs). By far the most costly dispute concerns the alleged cancer risk of glyphosate-containing chemical pesticides. These court rulings take into account 125,000 lawsuits filed not only against glyphosate.
Bayer's own agricultural activities decreased by 6.2 percent to approximately €10.1 billion in the second quarter. In the agricultural sector (crop science), Bayer products performed better than in the same quarter last year, especially in Latin America, Asia/Pacific, and North America. In Brazil, the company developed rapidly in the maize seed segment. Revenues from genetically modified soybean seeds rose significantly.
Globally, demand for agricultural raw materials will likely decline due to coronavirus. Because of the difficult-to-assess risks, Bayer has adjusted its full-year forecast. Management now aims for revenue growth of 0 to 1 percent, to €43 to €44 billion. Previously, it was planned to be €44 to €45 billion.
In the Crop Science division, Bayer expects a slow start to the new 2021 season in North America, partly due to pandemic-reduced demand for bioenergy, animal feed, and fibers, which should lead to a decrease in the expected acreage, and partly due to continued competition in the soybean market.