Makhteshim Agan’s First-Quarter Results Strong
15 May 2012 Makhteshim Agan recorded modest first-quarter financial results backed by a merger with ChemChina and growth in the Asia Pacific and Africa markets.
First quarter 2012 sales were $828.0 million, compared with $780.5 million in the corresponding period of 2011, an increase of 6.1%. The increase stemmed primarily from an improved mix of products and an increase in volumes sold. In addition, a rise in the price of oil and raw materials since 2011triggered a slight increase in selling prices in the crop protection sector which allowed MAI to also raise its prices
“Our strong business performance during the first quarter, including our record sales, gross profit and EBIDTA, stems from our focused pursuit of our strategic direction,” said Mr. Yang Xingqiang, Makhteshim Agan’s Chairman of the Board in a statement. “We are also working intensively to realize the joint potential of MAI and ChemChina following the completion of our merger, including investigating business opportunities in China that will enable us to strengthen our presence in China and the Pacific Asian region and foster continued growth and improved profitability over the long term.”
On a geographic basis, the strongest sales growth was delivered by the company’s Asia Pacific & Africa region, which contributed $141.2 million in the first quarter year of 2012, an 11.4% increase from $126.7 million for the first quarter of 2011. This improvement resulted from an increase in quantities sold in Asia and from the positive impact of changes in exchange rates which were partially offset by the Company’s hedging transactions.
European sales for the first quarter of 2012 were $423.5 million compared with $388.9 million in the corresponding period of the previous year, an increase of 8.9%. The growth stemmed mainly from increased quantities sold and ability to compensate for some of the increase in raw material costs through moderate price increase. This was countered by the negative effect of changes in exchange rates that were offset, somewhat, by the company’s hedging transactions.
North American sales for Q1 2012 amounted to $131.9 million compared to $126.9 million for the comparable period in 2011, an increase of 3.9%. Sales were characterized by an increase in volumes.
Sales in Latin America for first quarter of 2012 were $107.4 million compared to $113.5 million for the same quarter last year, a reduction of 5.4%. The slight decrease in sales stemmed from lower quantities sold as a result of draught conditions in Argentina.
Source: Makhteshim Agan, Edited by Stefanie A. Toth, Online Editor
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