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Bayer FY17 Net Profit Up, EBITDA Down; Sees Flat Earnings In FY18; Stock Dips


German conglomerate Bayer AG (BAYZF.PK,BAYRY.PK,BYR.L) reported Wednesday that its fiscal 2017 net profit climbed from last year, while pre-tax profit, EBITDA, a key earnings metric, and margin declined with relatively flat sales. Looking ahead, the company projects flat earnings for fiscal 2018. Bayer shares were losing around 3 percent in the morning trading in Germany.

For fiscal 2018, the company expects increase in sales (Fx & portfolio adj.), while EBITDA before special items and core earnings per share will be at prior-year level due to currency effects.

For the year 2017, net income climbed 61.9% to 7.34 billion euros from last year's 4.53 billion euros. Earnings per share grew 54.6 percent to 8.41 euros.

Income from continuing operations attributable to stockholders decreased to 3.2 billion euros from 3.7 billion euros in the prior year. Earnings per share from continuing operations was 3.73 euros compared to 4.50 euros.

Core earnings per share from continuing operations were 6.74 euros, compared to 6.67 euros last year.

Income before income taxes, meanwhile, dropped 4.1 percent to 4.77 billion euros from last year's 4.58 billion euros.

EBITDA dropped 2.7 percent from last year to 8.56 billion euros, and EBITDA before special items edged down 0.3 percent to 9.3 billion euros. EBITDA margin before special items dropped 26.5 percent from 26.7% a year ago.

Bayer reported that Fiscal 2017 net sales increased 0.2 percent to 35.02 billion euros from 34.94 billion euros in prior year.

Group sales, FX & adjusted portfolio, were up 1.5%.

The company noted that Monsanto acquisition is expected to close in second quarter of 2018

In Germany, Bayer shares were trading at 94.97 euros, down 3.19%.

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