12,000 jobs are lost «DiePresse.com

The supervisory board of the German chemicals group Bayer has approved the plans of the managing director Werner Baumann, with which the capacity to gain should be strengthened. The goal is to increase the adjusted earnings per share by approximately EUR 1, to EUR 6.80 in 2019, and to reach around EUR 10 in 2022. The flip side: in total, about 12,000 of the world's 118,200 jobs are lost as a result of efficiency measures and structural measures, a significant proportion of which are in Germany. In the current quarter, the write-downs of the Consumer Health and Pharmaceuticals divisions amounted to € 3.3 billion.

Baumann, CEO: "With these necessary adjustments, we will be even more powerful and agile in the future, and we want to make the best use of the growth potential of our business." At the same time, we are aware of the scope of our business decisions. our employees and we will implement the planned measures in a fair and responsible manner, as in the past. "

Oliver Zühlke, Chairman of the Works Council, speaks of a turning point: "For us, the guarantee of jobs and the future viability of jobs is our top priority." The joint statement has succeeded in creating good conditions. for that. "

Cancellations of billions of dollars in the planned restructuring of the Bayer Group darken the mood of investors. After announcing an austerity program, the shares of the pharmaceutical and agrochemical group initially increased by 3.9%, with a reduction of around 12,000 jobs. Shortly thereafter, however, newspapers were pressured and turned to the wrong side. With a high turnover, they were in the afternoon with 63.61 euros, about one percent lower. Before the announcement of the group, they were about 1.4% higher.

Investors are primarily high depreciation, said Börsianer. "This is not so convincing," judged a trader.

Bayer's plans

• During the coming year, the implementation of several portfolio measures should be encouraged. Bayer wants to separate from his animal health business and examines the appropriate options. Although growth options are offered in an attractive market. However, the necessary investment funds will be used for the main Pharmacy, Consumer Health and Crop Science activities.
• Steps have been taken to bring the Consumer Health Division to market growth and improve profitability in the coming years. This includes a planned withdrawal of product categories with better development potential outside of Bayer. In addition to the announced divestiture of prescription dermatology products, strategic options will be explored in the coming months to get rid of sunscreen (Coppertone ™) and foot care (Dr. Scholl's #); The company thus wishes to focus on the profitable growth of the main categories of Consumer Health.
• In addition, Bayer discusses the sale of its 60% stake in German location provider Currenta. Following the successful separation of Covestro, the use of Currenta's services is disproportionate to Bayer's participation.
• In addition to the measures foreseen in the portfolio, the cost structure should also be considerably improved. The aim is to further strengthen innovation and productivity, accelerate access to future technologies, further increase competitiveness and profitability and, in this context, maximize the efficiency of functions and transversal services.
• All planned efficiency measures and structural measures, including expected synergies from the Monsanto acquisition, are expected to generate an annual contribution of € 2.6 billion from 2022. This is consistent with a planned reduction about 12,000 of the world's 118,200 jobs, a large proportion of which in Germany, which should, however, be carried out in a socially responsible manner. Details will be settled in the coming months. The total non-recurring costs for these measures is approximately 1.7 times the annual contributions. Part of the funds released will be used in the coming years to strengthen the strength of innovation and competitiveness of the divisions. "Just for the end of 2022, future investments of about 35 billion euros are expected.We want to invest more than two-thirds in research and development and just under a third in fixed badets. "said Baumann.
• For the adjusted net income per share, in the badumption of a constant portfolio and constant exchange rates, the company expects to 6.80 euros in 2019 (2018: 5.70 to 5 , 90 euros). In the coming years, the adjusted net income per share should reach around 10 euros in 2022. The EBITDA margin before exceptional items of the Bayer group should reach more than 30% by 2022.
• In the Pharmaceuticals division, in addition to the successful development of the research and development pipeline, it is essential to focus more on external innovations. This means accelerated development of the innovation model and goes hand in hand with a restructuring of internal R & D. Resources generated through the reduction of internal capacity will be used to increase investment in research with external partners and innovations.
• In the field of hemophilia, competition has increased considerably with the introduction of several new products. In order to remain competitive in this segment, Bayer has decided not to use the Factor VIII facility built in Wuppertal, Germany, but to concentrate the production of all products containing recombinant factor VIII at the Berkeley site ( United States).
• In the Consumer Health Division, a series of measures is expected to restore market growth and improve profitability in the coming years. In addition to portfolio measures, among other things, the organization must also be reorganized in order to succeed in a rapidly changing market environment.
• In the Consumer Health and Pharmaceuticals divisions, non-cash impairments, totaling € 3.3 billion, are expected in the fourth quarter of 2018. Most of Consumer Health's impairments relate to brands acquired through the operations of Merck & Co. and Dihon and a portion of goodwill recognized (for a total amount of approximately 2.7 billion euros). At Pharmaceuticals, impairment losses of approximately EUR 0.6 billion were realized, mainly due to the decision to operate in factor VIII at Wuppertal.
• In the Crop Technology Division, the focus is on the successful integration of agricultural activity. As previously announced, annual contributions to EBITDA before exceptionals from synergies of $ 1.04 billion ($ 1.2 billion) are expected to begin in 2022, which are included in the above-mentioned contribution objective – including 0.87 billion euros ($ 1 billion) in the form of cost synergies.
• The above-mentioned changes in the divisions and the rationalization of the portfolio are complemented by other important adjustments within the company. This is the complete group and cross-functional functions, business services and national platforms. The goal is to put in place an effective organization and infrastructure to best support businesses – and thus business customers.
• The projected reduction of about 12,000 jobs worldwide by the end of 2021 will be broken down as follows: It is expected to reduce about 900 jobs in research at Pharmaceuticals, about 350 in compared with factor VIII operations in Wuppertal, around 1,100 of the organizational reorganization at Consumer Health, around 4,100 at Crop Science through the integration of the agri-food acquired and 5,500 another 6,000 in national and inter-divisional functions, divisions and services.