The Globe and Mail

Go to the Globe and Mail homepage

Jump to main navigationJump to main content

Globe Investor

News Sources

Take control of your investments with the latest investing news and analysis

Press release from PR Newswire

Syngenta Third quarter 2012: sustained sales growth

Tuesday, October 23, 2012

Syngenta Third quarter 2012: sustained sales growth01:00 EDT Tuesday, October 23, 2012- Sales up 6 percent at constant exchange rates to $2.7 billion - Strong start to Latin American season: sales up 18 percent - 9 month sales reach record level: $11 billionBASEL, Switzerland, Oct. 23, 2012 /PRNewswire/ -- Sales in the third quarter of 2012 increased by 6 percent at constant exchange rates driven by an excellent performance in Latin America. Sales in the first nine months of the year increased by 9 percent to reach a record $11 billion, with volume up 6 percent and prices up 3 percent.Third quarter regional salesTotal integrated sales increased by 7 percent at constant exchange rates. In Latin America, a strong start to the season drove sales growth of 18 percent, with expansion across all product lines. High soybean prices are leading to acreage expansion and increased investment by soybean growers in Brazil and Argentina. Sales of crop protection for sugar cane doubled as a result of rapid technology adoption. In Asia Pacific, sales increased 3 percent. Significant growth in Corn seeds, notably in South East Asia, demonstrates the continuing momentum of an enhanced corn portfolio. Vegetables seeds showed a marked recovery with double digit growth. Crop protection sales were lower in Japan and also in India, owing to a delayed monsoon; expanding seed care use across the region was reflected in sales growth of more than 50 percent. In Europe, Africa and the Middle East, the success of the integrated hybrid barley product offer drove sales particularly in Germany and Northern Europe. Eastern Europe maintained its record of broad-based growth, with sales in the CIS up by almost 20 percent. Overall crop protection sales in the low season were unchanged after a strong first half, with significant growth in fungicides offsetting lower herbicide and insecticide sales. In North America, crop protection sales were broadly unchanged despite a reduction in fungicide applications due to drought and a shift in selective herbicides phasing to the fourth quarter. Non-selective herbicides and seed care grew strongly; in addition, sales of FORCE® tripled with increasing grower awareness of resistance to a competitor's corn rootworm trait.Third quarter product line salesGrowth in Selective herbicides in Latin America largely offset lower sales in Europe and in North America. Non-selective herbicides sales increased 13 percent reflecting strong demand in Latin America and an increase in REGLONE® sales in Canada. Fungicides in Europe were driven by AMISTAR® and by the new product REVUS®. This, together with growth in Latin America, more than offset the impact of drought in North America. Insecticides sales reflected strong performances by DURIVO® in all regions, ACTARA® in Latin America and FORCE® in the USA. In Seed care, increasing recognition of the yield and vigor benefits offered by CRUISER® was reflected in sales growth of over 30 percent; adoption of AVICTA® against nematodes accelerated. Growth in Corn and soybean sales was driven by Latin America and by Asia Pacific, where new corn hybrids were introduced in Indonesia and the trait offer in the Philippines expanded. This more than offset end-of-season adjustments in North America and Europe. Diverse field crops sales, which include hybrid barley seeds, were up by 35 percent. Vegetables sales continue to be affected by weak consumer demand in southern Europe and North America, but grew strongly in Latin America and Asia Pacific.Third quarter Lawn and Garden salesThe divestment of Fafard in North America reduced sales by $10 million. Crop pipelinesIn 2012 Syngenta has held two crop updates focusing on four of its strategic crops: Cereals, Corn, Rice and Vegetables. Increased pipeline targets for these crops support a revised total sales target for all eight key crops of $25 billion by 2020. These targets comprise growth in the existing portfolio and the launch of new products, with an increasing emphasis on integrated offers reflecting the new R&D and crop team structure.AcquisitionsDu Pont Professional Products insecticide business (announced 29 August)The acquisition will strengthen the Lawn and Garden leadership position and reflects its strategic focus on high value chemistry and genetics.Pasteuria Bioscience (announced 19 September)The acquisition adds a unique biological technology platform for nematode control to Syngenta's extensive portfolio of biological solutions.Devgen acquisition offer (public offer announced on 21 September)The intended acquisition would enable Syngenta to combine its leading crop protection portfolio for Rice with Devgen's rice hybrids and broad germplasm diversity. In addition, Devgen would bring proven expertise in RNAi-based insect control. OutlookMike Mack, Chief Executive Officer said: "Continued growth in the third quarter demonstrates the breadth of our portfolio and the gathering momentum of our strategy. In Latin America, where Brazil is in its third year of integration, we are starting to realize the full potential of our leading commercial offers and new technologies. This, together with the increase in our targets for key crops, gives us increased confidence in our long term growth potential. We will continue to invest in growth opportunities while maintaining a high level of profitability. For the full year 2012, we expect an increase in the EBITDA margin at constant exchange rates and strong growth in earnings per share."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 third quarter sales Group salesQ3 2012$mQ3 2011$mActual%CER1%Europe, Africa and Middle East579644-10+2North America460484-5-4Latin America1,114949+17+18Asia Pacific398418-5+3Total regional sales2,5512,495+2+7Lawn and Garden2147168-13-8Group sales2,6982,663+1+6Crop Protection by region Europe, Africa and Middle East453511-12-North America416425-2-1Latin America924765+21+21Asia Pacific337374-10-2Total2,1302,075+3+7Seeds by regionEurope, Africa and Middle East129135-4+8North America5366-18-18Latin America199187+6+6Asia Pacific6145+36+48Total442433+2+7Sales by businessCrop Protection2,1302,075+3+7Seeds442433+2+7Elimination of Crop Protection sales to Seeds-21-13n/an/aTotal regional sales2,5512,495+2+7Lawn and Garden2147168-13-8Group sales2,6982,663+1+6 1Growth at constant exchange rates.2Includes product lines Professional Products and Flowers. Professional Products were formerly reported under Crop Protection and Flowers under Seeds. Product line salesQ3 2012$mQ3 2011$mActual%CER1%Selective herbicides428453-5-1Non-selective herbicides351321+9+13Fungicides554565-2+2Insecticides456436+5+10Seed care303256+18+24Other Crop Protection3844-16-10Total Crop Protection2,1302,075+3+7Corn and soybean182175+4+5Diverse field crops10484+24+35Vegetables156174-10-4Total Seeds442433+2+7Elimination of Crop Protection sales to Seeds -21-13n/an/aLawn and Garden2147168-13-8Group Sales2,6982,663+1+6 1Growth at constant exchange rates.2Includes product lines Professional Products and Flowers. Professional Products were formerly reported under Crop Protection and Flowers under Seeds. Unaudited nine months salesGroup sales9 months 2012$m9 months 2011$mActual%CER1%Europe, Africa and Middle East3,5873,568+1+7North America3,2412,735+19+19Latin America2,1571,981+9+10Asia Pacific1,3951,444-3-Total regional sales10,3809,728+7+10Lawn and Garden2583637-8-6Group sales10,96310,365+6+9Crop Protection by regionEurope, Africa and Middle East2,5852,604-1+6North America2,1551,872+15+16Latin America1,8501,699+9+10Asia Pacific1,2141,283-5-2Total7,8047,458+5+8Seeds by regionEurope, Africa and Middle East1,018977+4+11North America1,106876+26+26Latin America331291+14+14Asia Pacific182164+11+19Total2,6372,308+14+18Sales by businessCrop Protection7,8047,458+5+8Seeds2,6372,308+14+18Elimination of Crop Protection sales to Seeds -61-38n/an/aTotal regional sales10,3809,728+7+10Lawn and Garden2583637-8-6Group sales10,96310,365+6+9 1Growth at constant exchange rates.2Includes product lines Professional Products and Flowers. Professional Products were formerly reported under Crop Protection and Flowers under Seeds. Product line sales9 months 2012$m9 months 2011$mActual%CER1%Selective herbicides2,3502,200+7+10Non-selective herbicides948886+7+10Fungicides2,2862,294-+3Insecticides1,3281,294+3+6Seed care787686+15+19Other Crop Protection10598+7+11Total Crop Protection7,8047,458+5+8Corn and soybean1,4501,137+28+29Diverse field crops653599+9+14Vegetables534572-7-2Total Seeds2,6372,308+14+18Elimination of Crop Protection sales to Seeds-61-38n/an/aLawn and Garden2583637-8-6Group Sales10,96310,365+6+9 1Growth at constant exchange rates.2Includes product lines Professional Products and Flowers. Professional Products were formerly reported under Crop Protection and Flowers under Seeds. Cautionary Statement Regarding Forward-Looking StatementsThis 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 therefor. Syngenta International AGMedia contacts:Analyst/Investor contacts:Media OfficePaul BarrettJennifer GoughCH-4002 BaselSwitzerland +41 61 323 2323Switzerland +41 61 323 5059SwitzerlandUSA +1 202 737 6521Tel: +41 61 323 23 23Fax: +41 61 323 24 24Paul MinehartLars OestergaardUSA + 1 202 737 8913Switzerland +41 61 323 6793www.syngenta.comUSA +1 202 737 6520 SOURCE Syngenta