Bayer warns of falling profits as costs bite

STORY: Bayer has warned of falling profits ahead.

The German agriculture and healthcare giant says it’s suffering as inflation drives costs higher.

It’s also seen prices for its weedkillers fall after they had jumped last year.

Now Bayer says this year’s earnings will go no higher than about $13.8 billion.

That’s would be around half a billion down on 2022.

The number sent Bayer shares down by as much as five percent in Tuesday (February 28) trade, though the stock later recovered some ground.

The figures will ramp up pressure on incoming chief executive Bill Anderson, who’s due to take over in June.

He’s under pressure from some investors to break up the firm.

Bayer also faces an ongoing headache over U.S. lawsuits alleging that it’s weedkillers caused cancer.

It says the legal actions will cost it up to about $3.2 billion this year.

The firm denies all suggestion that its products are unsafe, and says regulators support that view.

However, it has already had to pay out over $9 billion to settle legal claims.