Monday , September 26 2022

Bayer AG wishes to maintain stable dividends, share of shares due to glyphosate processes in the United States



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The Bayer stock market agrochemical group has to deal with several glyphosate claims in the US than previously known. By the end of October, court documents had been sent by a total of about 9300 plaintiffs, Bayer executive director Werner Baumann told Leverkusen on Tuesday. That was about 600 more than at the end of August. Baumann expects further growth.

The applicants accuse the American company Monsanto, acquired by Bayer, that he sold a carcinogen with glyphosate and that he was not sufficiently informed about this harmful. Baumann has contradicted: "Glyphosate is a very safe product in terms of chemistry, the mechanism of action."

In the summer, California, the first glyphosate decision hit the titles, claiming $ 289 million from a cancer patient. Subsequently, the fine was reduced to 78 million dollars. Fearing of the huge total payments, many investors pulled the ripcord and sold their shares – the Bayer stock declined.

Hunting for Bayer: How US justice destroys Bayer's business model

Market value more than half of 2015

The Bayer Stock Exchange continued to decline on Tuesday, down from a five-year decline – despite Bayer's quarterly results exceeding expectations and confirming the forecast for 2018. Recently, shares were traded by 1.3% to minus 67 , 70 euros. In the summer of 2015, the action was quoted at 142 euros more than twice as high.

In this process, the company wants to appeal and prepare for these still-appropriate writings. After verdict, the number of plaintiffs grew – other people who saw themselves guilty, went to court. The US petition industry has long discovered glyphosate.

The result of the call, probably only 2021 – Baumann excludes the comparison

Director Bayer, Baumann, pointed out that it was only a first-instance judgment that had no binding effect on the other procedures. "We believe this judgment is wrong." CEO expects the result of appointment to be at the latest by 2021. Earlier next year, several glyphosate cases should begin first in front of US courts.

Baumann continues to feel good about glyphosate, but in individual cases he excludes it. However, in the future, "minor amounts" may be paid for a complex whole, for example, in order to avoid higher legal and legal costs for the continuation of the legal litigation.

Applicants, ecologists, minors and various scientists believe that the chemical is dangerous to nature and health. The World Health Organization (WHO) classified glyphosate in 2015 as "a likely human carcinogen", a possible carcinogen.

Bayer indicates 800 studies on glyphosate – but investors remain nervous

Baumann pointed out that, according to the WHO publication, EU health authorities, Japan and South Korea and other states have become active again and have not yet classified glyphosate as a carcinogen. There are more than 800 studies that indicate that glyphosate is safe when properly used, according to Baumann.

The CEO also presented quarterly figures that were solid in general. The earnings before interest, tax, depreciation and amortization (Ebitda) as well as special items remained at the level of EUR 2.2 billion in the third quarter of 2018. The bottom line, the Dax group, gained approximately 2.9 billion of euro, though less, after nearly $ 3.9 billion a year earlier. However, a year ago, Bayer also benefited from a number of special effects that did not happen again.

Bayer increases sales with Monsanto to about 10 billion euros

In the last quarter of the year, Bayer increased sales by nearly a quarter to 9.9 billion euros as a result of the acquisition of Monsanto.

In the field of agricultural chemicals (crop science), Bayer reported a quarterly turnover of 3.7 billion euros, of which 2.2 billion euro by acquisition. Business with prescription drugs, such as Xarelto's anticoagulant, has been rising, but sales of over-the-counter medications and animals have grown less in euro than before. In the future, Bayer shows the growth rate as a whole, the total turnover of 2018 is over € 39 billion.

Despite the big debt, the group wants it Dividends for the year 2018 continue to remain at least the same as in the previous year.

La / dpa

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