Bayer 4Q Net Profit Slumped on U.S. Tax Reform
By Nathan Allen
Bayer AG (BAYN.XE) said Wednesday that its fourth-quarter net profit slumped, due largely to a hit from the U.S. tax reforms.
Net profit for the quarter fell 67% to 148 million euros ($181.9 million) compared with EUR453 million a year earlier, while sales fell 2.6% on year to EUR8.60 billion, the company said.
A consensus forecast provided by FactSet had predicted net profit of EUR745 million and sales of EUR8.63 billion.
Bayer attributed the lower earnings to a EUR455 million tax hit from the U.S. fiscal reforms and ongoing difficulties with its Brazilian crop-science business.
Bayer said that its earnings before interest, taxes, depreciation and amortization before special items fell slightly to EUR1.78 billion, from EUR1.81 billion in the year-earlier period.
The company said its net profit for the full year rose nearly 62% to EUR7.34 billion.
For 2018, the company expects sales and earnings at the prior-year level, despite likely currency losses.
Bayer didn't disclose any new information on the upcoming merger with Monsanto Co. (MON) but said that it expects the deal to close in the second quarter.
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(END) Dow Jones Newswires
February 28, 2018 02:11 ET (07:11 GMT)Copyright (c) 2018 Dow Jones & Company, Inc.