Syngenta Sales Rise on Strong North American Demand
19 April 2012 Syngenta posted 7% higher first-quarter sales to $4.3 billion, buoyed by higher sales of corn and soybeans.
Its corn portfolio in Europe and North America and demand for Axial herbicide drove a double-digit increase in selective herbicides sales in the period. “In the USA, solutions for resistant weeds are increasingly valued,” Syngenta said in a statement. Sales of its Force product for combatting corn rootworm climbed by more than half, it noted.
Non-selective herbicides sales dropped 6%, reflecting lower sales of Gramoxone, particularly in Korea.
Syngenta posted gains in insecticides on demand for Actara and Durivo for rice and vegetables. Its fungicide business also rose on robust demand in Europe, and its expansion of its Amistar product, notably in the US, more than offset lower sales in drought-afflicted Latin America, it said.
“After a strong year in 2011 sales momentum continued in the first quarter, with an excellent start to the season in both Europe and North America … This underpins our confidence that we will continue to outperform an expanding market,” Chief Executive Mike Mack said in a statement. “In 2012, although we face the anticipated headwind from currencies and raw materials, we expect to achieve a further increase in EBITDA margin at constant exchange rates and to sustain strong cash generation.”
Broken down by region, sales in Europe, Africa and the Middle East together rose 10% to $1.76 billion. It cited strong demand for Callisto on corn and fungicides in France, and a 25% increase in Eastern European on a broader crop protection range and robust demand for spring crop seeds. In Ukraine, seed sales doubled to more than $100 million.
North American sales outperformed every other region in the period, climbing 13% to $1.27 billion, helped by demand for its Agrisure Viptera trait in corn seed. Sales of soybean and vegetable seeds were lower, it said.
In Latin America, Syngenta reported higher second season corn in Brazil partially offset effects of drought in Argentina and southern Brazil. Seed sales shot up more than 40% in the region.
Corn seed also helped propel sales in Asia Pacific, while crop protection sales dropped due to cold and wet conditions in Australasia. “China and the emerging ASEAN markets showed strong growth across the business,” Syngenta said.
Source: Syngenta; edited by Jaclyn Sindrich, Managing Editor
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