By Kim Richters

Bayer AG Tuesday said it swung to a loss in the second quarter of the year, as it set aside provisions for settlements related to its glyphosate-based Roundup herbicide.

The German pharmaceutical and chemical conglomerate said its net loss for the period was 9.55 billion euros ($11.23 billion) due to special items for litigations, compared with a profit of EUR404 million a year earlier. Charges included costs for the Roundup cases as well as provisions for other litigations such as for the dicamba herbicide, the company said.

Bayer continues to expect total costs of up to $10.9 billion to settle the tens of thousands of lawsuits related to the Roundup herbicide and resolve possible future litigations.

Earnings before interest, taxes, depreciation and amortization before special items rose 5.6% to EUR2.88 billion, compared with EUR2.73 billion in the same quarter the previous year.

Quarterly sales came in at EUR10.05 billion down from EUR10.71 billion year prior.

Analysts expected sales of EUR10.40 billion and adjusted Ebitda of EUR2.74 billion, according to consensus estimates provided by Vara Research.

Bayer lowered its outlook for the year due to the coronavirus pandemic. It now expects sales to be between EUR43 billion and EUR44 billion and Ebitda before special items of around EUR12.1 billion, both on a currency-adjusted basis.

Write to Kim Richters at kim.richters@wsj.com

(END) Dow Jones Newswires

August 04, 2020 02:32 ET (06:32 GMT)

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