Syngenta Gets Boost from Latin America
21 October 2011 Syngenta reported robust third-quarter sales, as more investment in corn and strong soybean crop prices in Latin America drove demand for herbicides. Early orders in the US, where solutions for weed resistance in corn and soybean are increasingly in demand, also helped boost sales, it said.
The Swiss company posted new crop protection product sales of $484 million in the first nine months, up 39 percent.
Syngenta said third-quarter sales climbed 16% at constant exchange rates, while volume grew 13%. In the first nine months of the year, sales were up 13% at constant exchange rates at $10.4 billion, according to Syngenta. Prices expanded 3%.
“In the third quarter of 2011, positive volume momentum continued and crop protection pricing improved as a result of the actions we have implemented,” said Mike Mack, Syngenta’s chief executive officer. “Our performance reflects the breadth of our portfolio, augmented by rapid growth in new crop protection products and the expansion of our corn trait coverage. In addition we expect the launch of integrated offers, such as our solutions for soybean in Latin America, to further reinforce our market positions.”
The company forecast “substantial” revenue growth and increased profitability at constant exchange rates.
Integrated Crop Protection and Seeds Performance
In Latin America, leading offers enabled growth of 27% across Syngenta’s portfolio. A robust soybean crop price and the expectation of lower production in the USA are leading to increased investment by soybean growers in Brazil and Argentina, according to the company. Corn sales were also up strongly with rapid adoption of both herbicides and traits.
In Europe, Africa and the Middle East, Syngenta’s sales increased by 10% led by France and the CIS.
In North America, sales rose 10% with broad-based volume growth in crop protection and slightly higher pricing. Seeds sales in the low season included normalized end-of-season rebates which compared with a positive adjustment in the third quarter of 2010, according to Syngenta. In Asia Pacific, where sales increased by 13%, robust growth in crop protection more than offset higher seeds returns in Southeast Asia.
Product line sales*
Non-selective herbicide sales increased, reflecting higher TOUCHDOWN sales in Latin America and the expansion of REGLONE in the CIS. In fungicides, the largest contribution came from the rapid expansion of usage in the emerging markets of Asia Pacific. In the USA, recognition of crop enhancement effects led to strong growth. Insecticides growth was led by ACTARA and by the DURIVO family, which is expanding rapidly in Latin America and is now launched on vegetables in China. Sales of Professional Products increased 4%, with market share gains in Asia Pacific and in the consumer segment in Europe, according to Syngenta.
Combined sales of new crop protection products reached $484 million in the first nine months, an increase of 39%.
Growth in corn and soybean seeds was driven by Latin America, where investment in corn is increasing. The company is seeing strong acceptance of their Viptera trait. Sales of soybean seeds in Latin America more than doubled with the launch of new varieties and integrated solutions. Diverse field crops continued to show strong growth driven by sunflower in Argentina, with the acquisition of Maribo in sugar beet contributing 2%, according to the company. Vegetables continued their track record of strong growth with expansion in all key crops.
*Growth at constant exchange rates
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