Strasbourg, France
December 17, 2000
In a move towards resolving the StarLink
situation, Aventis CropScience has decided to accrue 100 million euros (pre
tax) during the fourth quarter to cover certain recall related costs and
liability costs.
"As we are in the midst of discussing this issue with our licensees
who sold StarLink seed and insurance providers, this is currently the
best estimate that we can provide", said Patrick Langlois, Chief
Financial Officer of Aventis. "Fortunately, we have significant insurance coverage towards
resolving this issue. This accrual will be treated as an exceptional item, and
does not alter the earnings outlook of Aventis on a full year basis",
concluded Langlois.
StarLink is a technology developed by Aventis CropScience, which
provides insect protection for hybrid corn through the use of Cry9C
protein. Seed producers insert the protein into their corn with the
assistance of biotechnology.
Starlink corn has been approved in the U.S. only for use in animal
feed and industrial, non-food uses. Evidence of Cry9C has been found in
certain food products. This has led to corrective measures by Aventis
CropScience.
Aventis (NYSE: AVE), a world leader in pharmaceuticals and agriculture,
is dedicated to improving life through the discovery and development
of innovative products in the fields of prescription drugs, vaccines,
therapeutic proteins, crop production and protection, animal health
and nutrition. Aventis announced in November 2000 that it intends to
focus on pharmaceuticals and plans to divest its activities in agriculture.
With its global corporate headquarters in Strasbourg, France, Aventis
employs around 95,000 people in more than 120 countries and recorded
pro forma sales in 1999 of 20.5 billion euros. Aventis was launched in
December 1999 through the merger of Hoechst AG of Germany and Rhône-Poulenc SA of France.
Company news release
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