MARIA: FOURTH-QUARTER EARNINGS
UP THIS MORNING TO THE GERMAN
DRUGMAKER AGRICULTURE GIANT
MISTAKE DICTATIONS ON REVENUE
DUE IN PART TO U.S. TAX REFORM
HALL TO A 16 MONTH LOW.
JOINING US NOW FOR THE FIRST ON
FOX NEWS IS THE CEO OF BAIR.
GOOD TO HAVE YOU ON THE PROGRAM
THIS MORNING.
THANK YOU SO MUCH.
>> HI, MARIA.
GOOD MORNING.
MARIA: CAN YOU TELL US WHAT THE
GROWTH IN THE QUARTER, WHAT
WOULD YOU SAY WAS THE STANDOUT
THIS LAST THREE MONTHS?
>> WELL, AS WE'VE SEEN AVALON
PERFORMS IN PARMA, SO SALES
ADVANCED AGAIN BY ROUGHLY 4%.
IF YOU LOOK AT OUR KEY GROWTH
PRODUCT, SO BLOOD THINNER
TORONTO AND SOME OF OUR CANCER
PRODUCTS, ALL OF THEM HAVE DONE
WELL FOR THE ENTIRE YEAR.
PHARMA BUSINESS HAD ANOTHER
RECORD YEAR.
QUITE FRANKLY, THE OTHER
BUSINESS, THINGS DID NOT GO DOWN
WELL IN 2017.
IT'S A DIFFICULT BUSINESS IN
PARTICULAR IN THE U.S. AND WE
HAD SIGNIFICANT OVERSUPPLY IN
THE MARKET IN BRAZIL AS OUR
COMPETITORS AS WELL.
WE HAD TO CLEANSE THE SITUATION
AND HAVE SINCE MADE VERY GOOD
PROGRESS I HAVE TO SAY IN
GETTING THE SITUATION UNDER
CONTROL AND ADVANCING AGAIN.
GOING INTO 2018.
MARIA: I WANT TO TALK ABOUT THE
CONSUMER BUSINESS.
IT WAS A LITTLE UNDER PRESSURE
IN THE U.S.
INTERESTING TO NOTE GIVEN THE
ECONOMICS OF THE U.S. HAVE BEEN
IMPROVING.
THE MR. OF THE $66 BILLION DEAL
FOR MONSANTO.
APPROVALS FROM EUROPEAN
REGULATORS IN THE U.S.
THE COMPANY HOPING THE DEAL WILL
CLOSE THIS YEAR.
ARE YOU EXPECTING THE APPROVAL
IN THE SECOND QUARTER?
FROM THE E.U.?
>> YES, MARIA.
RIGHT NOW WE HAVE SEEN VERY GOOD
PROGRESS.
ROUGHLY HALF OF THE 30 THAT WE
NEED, WE ARE IN VERY GOOD
DISCUSSIONS WITH THE EUROPEAN
COMMISSION MAKING GOOD PROGRESS
THERE AND ALSO THE DOJ COMING
EVEN THOUGH WE ARE A LITTLE BIT
BEHIND THE PROCESS.
BUT OVERALL, AS YOU HAVE
MENTIONED, WE ARE QUITE
CONFIDENT THAT THE SECOND
QUARTER AND WE ARE ALSO
OBTAINING APPROVALS NECESSARY TO
DO SO.
MARIA: SOA FOR THE E.U. APPROVAL
OF THE SECOND QUARTER, WHAT ARE
THE PLANS IN TERMS OF
DIVESTITURES, RAISING MONEY WENT
TO GET THAT APPROVAL.
ARE YOU EXPECTING TO DO A
SECONDARY OFFERING OF RIGHT DO
SHE WANTS TO GET THAT APPROVAL?
>> YES, MARIA.
FIRST OF ALL, LOOKING AT THE
DIVESTITURES WE HAVE ANNOUNCED A
SOBER, META-OVER LAST YEAR THAT
A VERY LARGE PART OF OUR BUYERS
ENTER NONSELECTIVE HERBICIDE
DELIVERED TWO PRODUCT LINES ARE
GOING TO BE DIVESTED.
OF COURSE ALWAYS CONTINGENT
COMING TO A CLOSING.
WE CONTINUED TO BE ENDLESS WITH
SOME SELECT ARE THERE AREAS THAT
ARE IN THE INTEREST OF THE
REGULATORS TO STRENGTHEN THE
OVERALL COMPETITION, INNOVATION
AND COMPETITION IN OUR INDUSTRY.
THAT DISCUSSION IS OVER ALL
REGARDLESS OF WHETHER YOU LOOK
AT THE EUROPEANS OR THE
DEPARTMENT OF JUSTICE.
VERY CONSTRUCT IS.
RECENTLY ANNOUNCED TODAY THAT WE
ARE NOW ALSO GOING TO DISCUSS
ARE BETTER THAN RECEIPTS
BUSINESS.
I CANNOT AT THIS POINT IN TIME
SAY THAT THIS IS WHAT IT GOING
TO BE BECAUSE THESE DISCUSSIONS
ARE STILL ONGOING.
ON THE SAME QUESTION, REGARDING
THE FINANCE TEAM, THIS IS GOING
TO BE A MIX OF EQUITY AND DEBT.
WE HAVE HEARD IT MENTIONED BASED
ON THE VERY GOOD DIVESTITURE,
THEY'LL NEED LESS EQUITY THAN WE
HAD TO, BUT THERE WILL BE A
RIGHT.
MARIA: I SEE.
YOU AND SEVERAL OTHER EUROPEAN
BUSINESS LEADERS TOOK PART IN
AROUND DISCUSSION IN DALLAS LAST
MONTH.
THE PRESIDENT SAID HE IS A FAN
OF THE COMPANY, BUT LET ME ASK
YOU THIS.
IN TERMS OF THEIR EXPERT
PATIENTS AND INVESTMENTS IN THE
UNITED STATES, TELL US WHAT THAT
LOOKS LIKE AND WHAT YOU THINK IS
BEHIND THE WEAKNESS YOU JUST
MENTIONED IN TERMS OF THE
CONSUMER IN THE U.S.
>> FIRST OF ALL, WE'VE BEEN IN
THE U.S. FOR MORE THAN 150 YEARS
AND WE HAVE GREAT INTEREST IN
BUSINESS BUT THE OVERALL ECONOMY
IN THE U.S. IN CONTRIBUTING
REGARDLESS OF MY ENCOUNTERS WITH
PRESIDENT TRUMP AND TO SAY THAT
THEY WERE VERY WELL-INFORMED
ALONG THE LINES OF WHAT WE'VE
ARE TO COMMUNICATE IT IN THE
COMBINATION IS GOING TO BE ABOUT
AND OF COURSE HE'S A VERY LOYAL
CUSTOMER, WHICH IS ALWAYS NICE
TO SEE.
MARIA: YES, FOR SURE.
DID YOU SAY THE CONSUMER
BUSINESS IS WEAK IN THE U.S.
RIGHT NOW?
>> YES, THE CONSUMER BUSINESS
OVERALL IS ACTUALLY IMPACT IT
ACROSS A COMPETITIVE BUSINESS BY
FAIRLY DRAMATIC AND RECORD
CHANGE IN CONSUMER BEHAVIORS.
THE STRONGER ADVANCE OF ONLINE
BUYING IF YOU LOOK AT STATIONARY
RETAIL, ABDUCTING TO LIVE.
WE NEED TO DO THIS FASTER.
WE ALSO NEED TO STEP UP
INNOVATION CAPABILITIES AND THAT
IS WHAT WE ARE WORKING ON.
CLEARLY 2017 WAS NOT A GOOD YEAR
FOR A CONSUMER BUSINESS.
MARIA: WE WILL LEAVE IT THERE.
WERNER BAUMANN, GOOD TO HAVE YOU