Bayer posts huge quarterly loss on weedkiller lawsuits
BERLIN, Aug 5: German pharmaceutical and chemical giant Bayer posted Thursday huge losses for its second quarter as it set aside 3.5 billion euros to cover potential costs of US lawsuits against its Roundup weedkiller.
Net loss for the three months ending June reached 2.3 billion euros ($2.7 billion), an improvement nevertheless from a year ago, when losses stood at 9.5 billion euros.
Bayer has been plagued by legal woes since it bought Roundup producer Monsanto in 2018, with a series of claims by cancer patients who say the glyphosate chemical in Roundup caused them to fall ill.
The company set aside its latest provisions after a judge in the US rejected its plan to settle future Roundup-related lawsuits, for which it had set aside up to $2 billion.
Bayer is now appealing to the Supreme Court to review the case of Edwin Hardeman, who had been awarded $25 million.
If the Supreme Court rules against Bayer, the group plans to "activate its own claims administration programme", using the supplementary provision amounting to the equivalent of $4.5 billion.
Legal issues aside, the company said its sales were up across the board and that it expected the positive momentum to continue.
It therefore raised its sales target for the full year to 43 billion euros, up from 41 billion euros previously expected. -AFP