Bayer's Supervisory Board Backs Management After Shareholder Vote
April 29 2019 - 2:08AM
Dow Jones News
By Anthony Shevlin
Bayer AG's (BAYN.XE) supervisory board said Saturday that it
stands behind the company's management after a majority of
shareholders refused to ratify management's actions in 2018.
"While we take the outcome of the vote at the annual
stockholders' meeting very seriously, Bayer's supervisory board
unanimously stands behind the board of management," said Werner
Wenning, chairman of the supervisory board.
Mr. Wenning said the outcome of Friday's vote sends a clear
signal to the German chemical-and-pharmaceutical company's
management that it should "bring out the company's strength's to a
great extent in the future."
Around 55% of Bayer shareholders declined to approve the actions
of management during the past year and Mr. Wenning said he
understood the disappointment shareholders feel over Bayer's shares
since the first glyphosate verdict in August 2018.
"It is our top priority to vigorously and successfully defend
the company in the upcoming appeal proceedings and trials
concerning glyphosate, as well as to attain the ambitious
operational growth and profitability targets communicated by the
board of management in December last year," said Mr. Wenning.
Furthermore, a large majority rejected a motion put forward by a
shareholder for a special audit to be conducted examining whether
management and the supervisory board have acted conscientiously
regarding the glyphosate litigation since the start of fiscal
2018.
Bayer's share rose last Thursday after the company's
first-quarter results beat expectations.
Net profit dropped to 1.24 billion euros ($1.38 billion) from
EUR1.95 billion a year earlier due to a series of one-off charges.
However, Bayer's adjusted earnings before interest, taxes,
depreciation and amortization, jumped nearly 45%, beating consensus
estimates by 4%.
Sales rose to EUR13.02 billion from EUR9.14 billion, the company
said, around 2% higher than analysts had forecast.
Write to Anthony Shevlin at anthony.shevlin@dowjones.com;
@anthony_shevlin
(END) Dow Jones Newswires
April 29, 2019 01:53 ET (05:53 GMT)
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