The Globe and Mail

Go to the Globe and Mail homepage

Jump to main navigationJump to main content

Press release from PR Newswire

Syngenta Third Quarter 2011: Sales Up 21 Percent at $2.7 Billion

Friday, October 14, 2011

BASEL, Switzerland, Oct. 14, 2011 /PRNewswire/ --

  • Sales at constant exchange rates up 16 percent
  • Good start to Latin American season
  • Continued Northern hemisphere momentum
  • Crop Protection prices up 3 percent

Sales in the third quarter of 2011 increased by 16 percent at constant exchange rates. Volume expanded by 13 percent, representing the sixth consecutive quarter of double digit growth, and prices rose 3 percent. In the first nine months of the year, sales were up 13 percent at constant exchange rates at $10.4 billion.

Integrated Crop Protection and Seeds performance*

In Latin America, our leading offers enabled growth of 27 percent across the portfolio. A robust soybean crop price and the expectation of lower production in the USA are leading to increased investment by soybean growers in Brazil and Argentina. Corn sales were also up strongly with rapid adoption of both herbicides and traits. In Europe, Africa and the Middle East, sales increased by 10 percent led by France and the CIS. Expansion of the range is reinforcing our market-leading positions in both Russia and Ukraine. In North America, sales increased by 10 percent with broad-based volume growth in crop protection and slightly higher pricing. Seeds sales in the low season included normalized end-of-season rebates which compared with a positive adjustment in the third quarter of 2010. In Asia Pacific, where sales increased by 13 percent, robust growth in crop protection more than offset higher seeds returns in South East Asia.

Product line sales*

Strong growth in Selective Herbicides was driven by Latin America and by early orders in the USA, where solutions for weed resistance in corn and soybean are increasingly in demand. Non-selective Herbicides sales increased reflecting higher TOUCHDOWN® sales in Latin America and the expansion of REGLONE® in the CIS. In Fungicides, the largest contribution came from the rapid expansion of usage in the emerging markets of Asia Pacific; in the USA, recognition of crop enhancement effects led to strong growth. Insecticides growth was led by ACTARA® and by the DURIVO® family, which is expanding rapidly in Latin America and is now launched on vegetables in China. Sales of Professional Products increased by 4 percent, with market share gains in Asia Pacific and in the consumer segment in Europe.

Combined sales of new Crop Protection products reached $484 million in the first nine months, an increase of 39 percent.

Growth in Corn & Soybean seeds was driven by Latin America, where investment in corn is increasing and we are seeing strong acceptance of our enhanced portfolio, including the VIPTERA? trait. Sales of soybean seeds in Latin America more than doubled with the launch of new varieties and integrated solutions. Diverse Field Crops continued to show strong growth driven by sunflower in Argentina, with the acquisition of Maribo in sugar beet contributing 2 percent. Vegetables continued their track record of strong growth with expansion in all key crops.

Mike Mack, Chief Executive Officer, said: "In the third quarter of 2011, positive volume momentum continued and crop protection pricing improved as a result of the actions we have implemented. Our performance reflects the breadth of our portfolio, augmented by rapid growth in new crop protection products and the expansion of our corn trait coverage. In addition we expect the launch of integrated offers, such as our solutions for soybean in Latin America, to further reinforce our market positions.

"For the full year we expect substantial top line growth, higher profitability at constant exchange rates and a significant increase in free cash flow."

*Growth at constant exchange rates

Syngenta is one of the world's leading companies with more than 26,000 employees in over 90 countries dedicated to our purpose: Bringing plant potential to life. Through world-class science, global reach and commitment to our customers we help to increase crop productivity, protect the environment and improve health and quality of life. For more information about us please go to www.syngenta.com.

Cautionary Statement Regarding Forward-Looking Statements

This document contains forward-looking statements, which can be identified by terminology such as 'expect', 'would', 'will', 'potential', 'plans', 'prospects', 'estimated', 'aiming', 'on track' and similar expressions. Such statements may be subject to risks and uncertainties that could cause the actual results to differ materially from these statements. We refer you to Syngenta's publicly available filings with the U.S. Securities and Exchange Commission for information about these and other risks and uncertainties. Syngenta assumes no obligation to update forward-looking statements to reflect actual results, changed assumptions or other factors. This document does not constitute, or form part of, any offer or invitation to sell or issue, or any solicitation of any offer, to purchase or subscribe for any ordinary shares in Syngenta AG, or Syngenta ADSs, nor shall it form the basis of, or be relied on in connection with, any contract therefore.

Syngenta International AG  

Media Office

CH-4002 Basel

Switzerland

Tel:       +41 61 323 23 23

Fax:       +41 61 323 24 24

www.syngenta.com

  Media contacts:

  Medard Schoenmaeckers

  Switzerland       +41 61 323 2323  

  Michael Edmond  Isaac

  Switzerland       +41 61 323 2323

Analyst/Investor contacts:

Jennifer Gough

Switzerland       +41 61 323 5059

USA                  +1 202 737 6521

Claire Hinshelwood

Switzerland       +41 61 323 7812

USA                  +1 202 737 6520

Unaudited Third Quarter Product Line and Regional Sales

Q3 2011   

Q3 2010   

Actual   

CER   

Syngenta

$m   

$m   

%   

%   

Crop Protection

2176

1763

+ 23

+ 19

Seeds

500

442

+ 13

+ 8

Business Development

0

3

n/a

n/a

Inter-segment elimination

-13

-9

n/a

n/a

Total

2663

2199

+ 21

+ 16

Crop Protection

Product line

Selective herbicides

453

302

+ 50

+ 43

Non-selective herbicides

321

276

+ 17

+ 13

Fungicides

565

503

+ 12

+ 9

Insecticides

436

337

+ 29

+ 26

Seed Care

256

202

+ 27

+ 20

Professional products

108

97

+ 10

+ 4

Others

37

46

- 18

- 21

Total

2176

1763

+ 23

+ 19

Regional(1)

Europe, Africa and Middle East

530

419

+ 26

+ 14

North America

467

381

+ 23

+ 21

Latin America

776

636

+ 22

+ 21

Asia Pacific

403

327

+ 23

+ 16

Total

2176

1763

+ 23

+ 19

Seeds

Product line

Corn & Soybean

175

154

+ 14

+ 13

Diverse Field Crops

84

68

+ 25

+ 15

Vegetables

174

156

+ 11

+ 6

Flowers

67

64

+ 4

- 4

Total

500

442

+ 13

+ 8

Regional(1)

Europe, Africa and Middle East

178

158

+ 13

+ 2

North America

85

116

- 27

- 27

Latin America

187

118

+ 60

+ 59

Asia Pacific

50

50

- 2

- 7

Total

500

442

+ 13

+ 8

(1) Mexico sales reported in Latin America (previously NAFTA).

Unaudited Nine Months Product Line and Regional Sales

Syngenta

9 months 2011   

9 months 2010   

Actual   

CER   

$m   

$m   

%   

%   

Crop Protection

7810

6759

+ 16

+ 12

Seeds

2592

2205

+ 18

+ 15

Business Development

1

8

n/a

n/a

Inter-segment elimination

-38

-33

n/a

n/a

Total

10365

8939

+ 16

+ 13

Crop Protection

Product line

Selective herbicides

2200

1922

+ 14

+ 11

Non-selective herbicides

886

824

+ 8

+ 4

Fungicides

2294

1991

+ 15

+ 12

Insecticides

1294

1037

+ 25

+ 21

Seed Care

686

571

+ 20

+ 15

Professional products

375

339

+ 11

+ 5

Others

75

75

-

- 4

Total

7810

6759

+ 16

+ 12

Regional(1)

Europe, Africa and Middle  East

2682

2204

+ 22

+ 16

North America

2035

1925

+ 6

+ 4

Latin America

1731

1469

+ 18

+ 17

Asia Pacific

1362

1161

+ 17

+ 11

Total

7810

6759

+ 16

+ 12

Seeds

Product line

Corn & Soybean

1136

960

+ 18

+ 18

Diverse Field Crops

599

454

+ 32

+ 29

Vegetables

572

516

+ 11

+ 7

Flowers

285

275

+ 4

-

Total

2592

2205

+ 18

+ 15

Regional(1)

Europe, Africa and Middle East

1130

920

+ 23

+ 19

North America

996

927

+ 7

+ 7

Latin America

292

195

+ 50

+ 49

Asia Pacific

174

163

+ 6

+ 3

Total

2592

2205

+ 18

+ 15

(1) Mexico sales reported in Latin America (previously NAFTA).

SOURCE Syngenta