Makhteshim Agan Third Quarter Helped by Strong Asia Pacific, Africa Sales
19 November 2012 
Top off-patent agrochemical maker Makhteshim Agan said third-quarter sales edged up mainly on higher prices and volume in Asia Pacific, Africa and Europe, offsetting higher raw material costs and sales declines in the Americas and Israel.
For the first nine months of the year, Tel Aviv-based MAI posted a 5% revenue increase to $2.26 billion, compared with $2.14 billion in the same period a year ago. Third-quarter revenue totaled $643.5 million, up from $638.5 million a year earlier.
“We continue to implement the company’s strategic initiatives, including the integration of MAI with ChemChina’s agrochemicals activities. In parallel, we are executing on our operational work plan that will allow us to strengthen our ability to create simplicity in agriculture for farmers around the globe,” Chairman Yang Xingqiang said in a statement.
Net income for the third quarter totaled $13 million, or 2.0% of sales, compared with $10 million for the third quarter of 2011.
For the nine-month period, net profit totaled $144 million, or 6.4% of sales, compared with $147 million, or 6.9% of sales, in the first nine months of 2011.
Chief Executive Erez Vigodman added, “I am pleased with our ability to significantly grow our operating profit, EBITDA and net income for both the quarter and first nine months of the year, despite the quarter’s unfavorable FX environment and challenging weather in the U.S., Russia and Eastern Europe.” He said the company continued to launch new off-patent products in many territories while compensating for higher raw material prices.
Asia Pacific and Africa delivered an 11% increase in sales to $130.2 million in the third quarter, MAI’s strongest sales growth. European sales increased 2% to $207 million, helped by higher selling prices in the region and currency hedging.
Sales in North America decreased by 7.5% from $96 million to $89 million, reflecting decreased quantities sold in light of the drought in the U.S. Sales in Latin America fell 2% from $192 million to $188 million, on reduced quantities sold, partially offset by higher selling prices in Brazil.
Separately, MAI named Dr. Anders Harfstrand President and Chief Executive Officer of its Europe Region. The appointment is effective Jan. 1, 2013. Harfstrand will replace Ignacio Dominguez, who is taking over as Chief Commercial Officer and head of its Products & Marketing Division.
Get The Newsletter Today!
