Syngenta First-Half Profit Takes Hit
Syngenta earnings in the first half of 2015 fell 12% on the impact of currency exchange rates and lower commodity prices.
Earnings in the first half were $1.2 billion, compared with $1.4 billion a year ago. Sales in the period totaled $7.6 billion, up 3% on a constant exchange rate basis. That takes into account a 6% rise in prices and a 3% decline in volumes. Excluding glyphosate, sales rose 6% in the first half. Reported sales fell 10% in the first half, as most currencies depreciated against the U.S. dollar.
Chairman and Chief Executive Mike Mack said, “In 2015 our industry has experienced continuing softness in crop prices and low farm incomes. Despite these challenges, and our decision to reduce sales of glyphosate, we achieved sales growth at constant exchange rates of 3% in the first half.”
Mack said the company has been able to largely offset currency depreciation in emerging markets through price increases and this, together with its hedging program, mitigated the impact of currencies on EBITDA. Its accelerating operational leverage program saved it $104 million and “contributed to substantial margin improvement, demonstrating that we are on track to deliver a sustainable improvement in profitability.”
“In the first half we saw continuing momentum from our new fungicide Elatus and the successful launch in the USA of the new corn herbicide Acuron,” Mack said.