The E2.2bn charge will result in a net loss for 2003

The E2.2bn charge will result in a net loss for 2003

Bayer’s full-year results for 2003 will be sent into the red by the inclusion of a E2.2bn charge in the fourth quarter related to its recently announced restructuring. The charge reflects the reduction in the value of assets to be spun off into NewCo, the firm that will hold the group’s chemicals business and much of its polymer activity from early 2005.

A total of E1.7bn of the total relates to these polymer and chemicals businesses, while changes to operating conditions at Bayer MaterialScience, which will retain the polycarbonate and polyurethane businesses, account for a further sum.

Bayer said the charges would result in a E2bn cut in the group’s 2003 EBIT, resulting in a net loss for the year. It stressed that the asset impairments are non-cash items. The group still expects to achieve a double-digit rise in 2003 EBIT before the charges.