Bayer: stock slumps as savings plan unveiled
(CercleFinance.com) - On Wednesday Bayer announced that it plans to save over 1.
5 billion euros annually through to 2024 by stepping up its transformation and efficiency and cost reduction programs.
These savings are to be added to the 2.6 billion euros in annual cost reductions targeted by 2022, which were unveiled in 2018, the German group said in a statement.
The savings it plans to make in the coming years should come from new job cuts, the chemical and pharmaceutical giant said, which also says it wants to make divestitures of non-core and unprofitable businesses.
In a statement, Bayer says that in 2021 it expects to report revenues that are about the same as in 2020, despite the impact of the Covid-19 crisis, which is biting into its crop protection activities in particular.
As such, the group plans to record a non-cash depreciation charge of between 5-to-10 billion dollars for its Crop Science agrochemical division.
All these announcements were clearly frowned up by investors on Thursday, with the Bayer share down over 11% in early trading.
Copyright (c) 2020 CercleFinance.com. All rights reserved.
5 billion euros annually through to 2024 by stepping up its transformation and efficiency and cost reduction programs.
These savings are to be added to the 2.6 billion euros in annual cost reductions targeted by 2022, which were unveiled in 2018, the German group said in a statement.
The savings it plans to make in the coming years should come from new job cuts, the chemical and pharmaceutical giant said, which also says it wants to make divestitures of non-core and unprofitable businesses.
In a statement, Bayer says that in 2021 it expects to report revenues that are about the same as in 2020, despite the impact of the Covid-19 crisis, which is biting into its crop protection activities in particular.
As such, the group plans to record a non-cash depreciation charge of between 5-to-10 billion dollars for its Crop Science agrochemical division.
All these announcements were clearly frowned up by investors on Thursday, with the Bayer share down over 11% in early trading.
Copyright (c) 2020 CercleFinance.com. All rights reserved.