Makhteshim Agan Posts Strong Results, Pursues Acquisitions
14 August 2013 
Israel’s Makhteshim Agan posted a 14.7% rise in second-quarter profit as sales rose strongly in Europe, and said it is looking to acquire companies owned by CNAC, its majority shareholder.
“The second quarter was a period of rising sales in most regions despite challenging weather and currency environments, enabling MAI to deliver additional net profit growth. At the same time, we have made important progress in the integration and buildup process of an operational and commercial platform in China for MAI, which will contribute to MAI’s future business success,” said ChairmanYang Xingqiang.
Erez Vigodman, president and CEO, commented, “The progress we have been making in China supports our pursuit to establish a strong foundation for our global activities and continued sustainable growth.”
Net income climbed to $48.2 million from $42 million a year earlier.
Second-quarter revenue increased 2.5% to $803.3 million, on volume and higher prices. In constant currency terms, sales increased by 3.7% year-over-year. Sales in North America were negatively impacted by severe weather conditions and higher channel inventories, MAI said.
Sales rose 6.2% in Europe – where the company counts the largest share of its business – to $340.6 million. Excluding the effect of currency translation, the rise was 8.9%. Sales rose 10.3% in its Asia Pacific, Africa and Israel region, helped by favorable weather conditions in India and Australia, while North American sales fell 11.1%. Latin American sales were up 1.8% for the quarter to $149.8 million.
MAI also said it is pursuing the acquisition of all of part of the shares of several companies that are controlled by CNAC, the agrochemical division of ChemChina. CNAC acquired a majority stake in MAI in October 2011.
“In connection with the process, MAI’s management was authorized to approach the Chinese authorities to approve an outline to launch a partial tender offer to purchase all or a part of the class B shares held Hubei by the public shareholders of Hubei Sanonda Co., Ltd., a public company controlled by CNAC, which is active in the agrochemical industry and which shares are traded on the Shenzhen stock exchange,” MAI said.
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