Bayer is experiencing sharp declines in its stock price, following the company's announcement of million dollar provisions and new cost containment measures. The pharmaceutical company's shares have reached lows not seen since March, when the coronavirus crisis led to a crash European stock exchanges.
The German giant's price fell 12,7% in Frankfurt, notes the Economist, leaving the company's securities at a price of 46,52 euros, something that has not happened since March. In Wednesday's session, Bayer had closed at € 53,31 a share.
This drop results from the announcement of the deterioration of some assets of the company's agro-industrial business, which will result in 5 to 9 billion euros in losses and, consequently, in weaker net results, such as lower dividends per share. To face this negative shock, Bayer intends to contain costs, including the reduction of its workforce or the exit of markets or brands with underperforming performances.