Bayer returns to profit as legal costs fall

German agrichemical group Bayer said Tuesday it returned to profit in the second quarter, helped by stronger agricultural business and a smaller legal bill.

Bayer reported net income of 219 million euros, or $252 million, for the three months to the end of June, compared with a loss of 199 million euros a year earlier.

The company said core earnings rose about 30 percent at its Crop Science division, which makes seeds, soybeans, weedkillers and insecticides. Core earnings were slightly lower at its Pharmaceutical and Consumer Health divisions.

Bayer said special charges primarily attributable to litigation costs fell to 172 million euros from 981 million euros.

The company has spent more than $10 billion settling thousands of cases linked to glyphosate-based herbicides since it acquired US agrichemical group Monsanto in 2018, developer of the Roundup weedkiller.

The International Agency for Research on Cancer considers glyphosate a probable human carcinogen. Bayer has pointed to scientific studies and regulatory approvals in the United States and the European Union as evidence that the weedkiller is safe.

Bayer said sales of glyphosate-based herbicides rose 12.6 percent in the quarter, driven by growth in Europe, the Middle East and Africa.

Chief executive Bill Anderson said the company's containment strategy was in a strong place, with important milestones ahead. Bayer is hoping to bring the glyphosate legal dispute to a close with a $7.25-billion class action settlement.