Charging by Corona : Bayer intends to intensify austerity program

Charging by Corona
Bayer intends to intensify austerity program

The pharmaceutical and agricultural chemical group, Bayer wants to save more. From 2024 to eliminate more than 1.5 billion euros per year in costs, said the Dax group on Wednesday evening.

This is necessary in a persistently challenging market environment. In this case, a further reduction of jobs was possible.

The savings should come in addition to an annual contribution to Earnings beginning in 2022 in the amount of EUR 2.6 billion, were announced in November 2018. The money was provided for further investment in Innovation and profitable growth opportunities and debt reduction. Bayer had spent 2018 a lot of money for the purchase of the US seed giant Monsanto and halste also many legal problems to alleged cancer risk of the weed ester Roundup to destroy with the active ingredient glyphosate. It will be worked on billion-dollar Compare.

For 2021, the group is expecting sales at about the same level from 2020. When adjusted for currency effects, earnings per share, the group expects a decline in.

The lowered Outlook for this year, Bayer confirmed. Particularly in the agricultural sector had reduced in the Corona-crisis growth expectations, it said further. This Situation will not likely to change in the near future. The direct effects of the pandemic would be more profound than initially expected.

In addition to lower prices, increased competition and a lower biofuel consumption, the group also called in part to massive negative currency effects such as the Brazilian Real as the stress factors. Against this Background, Bayer expects depreciation and amortization in the agricultural business in the mid to upper single-digit billion-Euro range.

In the case of the other business areas, it looks significantly better. The pharmaceutical sector is expected to grow in the coming year, it said. There is further increase in investment is planned, including through acquisitions of products. The health division have developed strong and should grow in the coming years, faster than comparable competitors. Here, you can imagine Bayer smaller Acquisitions. On the other hand, the company is also examining the sale of own shops and brands, on a smaller scale.