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Bayer wants to cut 12,000 jobs worldwide and sell the veterinary drug, some of its over-the-counter health products and its share in the Currenta Chemicals Parking Facility to free up funds for future investments. On Thursday, the Supervisory Board approved the Executive Board's proposals for CEO Werner Baumann. The goal is to improve the competitiveness of the group in the long term, as stated in a communication from Bayer. By 2022, the Group also wants to mobilize around 35 billion euros in future investments, including two good thirds in research and development.
The company is under pressure from investors because of the risks of undefined processes badociated with the glyphosate weed killer. The planned measures are expected to generate annual synergies of 2.6 billion euros from 2022, which also includes the expected positive effects of the Monsanto acquisition. In the short term, however, the conversion and dismantling of 10% of the workforce will cost. The group expects exceptional charges of 4.4 billion euros.
Bayer expects rapid earnings growth in 2019 and the following years
Bayer expects a significant increase in profits next year. Despite billions invested in research and development, adjusted earnings per share are expected to reach € 6.80 in 2019, the DAX Group announced. The basic badumption in this regard is a constant portfolio and unchanged exchange rates. For the current fiscal year, Bayer AG expects an adjusted earnings per share of € 5.70 to € 5.90.
In the following years, the Group promises its investors rapid growth: by 2022, the profit should reach about 10 euros per share. The EBITDA margin before exceptional items is expected to reach more than 30% by 2022.
The Leverkusen-based company wants to explain in detail its planning during the Financial Markets Day in London on December 5th.
The Bayer action is exchanged in the afternoon with a slight decrease of 0.33%.
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Image sources: Bayer AG, Gil C / Shutterstock, Taina Sohlman / Shutterstock.com, 360b / Shutterstock.com
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