July 27, 2017 / 5:58 AM / a year ago

Bayer crimps profit goal to below 10 pct growth on crop chemicals

FRANKFURT, July 27 (Reuters) - Bayer, which is taking over U.S. seeds group Monsanto, cut its outlook for operating profit growth this year to below 10 percent, as it grapples to cope with disappointing demand for crop chemicals in Brazil.

Germany’s largest drugmaker said it was now expecting 2017 earnings before interest, taxes, depreciation and amortisation (EBITDA), adjusted for one-off items, to increase by a high-single-digit percentage, where it had previously seen “low-teens percentage” growth.

Adjusted EBITDA for the second quarter came in at 3.06 million euros ($3.6 million), a touch above the year-earlier level and edging past the average forecast by analysts of 3.0 billion euros thanks to a boost in earnings at plastics unit Covestro.

Bayer warned last month that poor sales at crop protection distributors in Brazil and a weaker-than-expected consumer health business would hit earnings by at least 300 million euros ($342 million).

$1 = 0.8519 euros Reporting by Ludwig Burger; Editing by Victoria Bryan

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