Bayer AG reduced its sales forecasts for its crop science and pharma divisions this year, accounting for the German company’s profit warning last month.
Revenue for the crops unit will probably fall by 5% this year amid lower prices for the weedkiller glyphosate, while the pharma unit’s sales will likely stay flat, compared to a previous target for a 1% gain, according to a statement Tuesday.
The German company is giving more details about the forces driving last month’s cut to its 2023 financial targets. That was one of the first big moves from Chief Executive Officer Bill Anderson, who took over in June and is trying to breathe fresh life into the crisis-rattled company.
Investors are parsing Anderson’s every word for signs of whether he will support Bayer’s conglomerate structure — which has crop science, pharma and consumer health divisions under one roof — or if he might decide to break up the company.
His predecessor, Werner Baumann, remained a staunch defender of the current setup after he spent $63 billion last decade on crops giant Monsanto, which saddled Bayer with massive legal headaches related to the controversial weedkiller Roundup.
Anderson has thus far kept a relatively low profile, touring Bayer’s global operations and pledging to reshape the work culture for its 100,000 employees.
