Syngenta First Quarter 2012: sustained sales growth

BASEL, Switzerland, April 18, 2012 /PRNewswire/ --

• Sales up 9 percent at constant exchange rates to $4.3 billion
• Strong start to Northern hemisphere season
• Corn seed sales up 21 percent: technology realizing global potential
• Integrated strategy driving outperformance

Sales in the first quarter of 2012 increased by 9 percent at constant exchange rates.  Volumes were up 5 percent, with a further 4 percent contribution from price.  Reported sales were 7 percent higher at $4.3 billion.

Integrated sales

In Europe, Africa and the Middle East, sales were up by 14 percent at constant exchange rates compared with a strong quarter in 2011.  In France, a strong underlying performance by CALLISTO^® on corn and in fungicides was augmented by a shift in sales from the fourth to the first quarter following a change in the law on credit terms.  Eastern Europe continued its growth trajectory, with sales up by more than 25 percent helped by a broadening of the crop protection range and strong demand for spring crop seeds: in Ukraine, seeds sales doubled to exceed $100 million.  In North America sales were up 13 percent. Crop protection sales reflected an early start to the season and recognition of Syngenta's capabilities in resistance management and crop enhancement.  There was strong demand for Syngenta's enhanced corn seed portfolio, in particular the AGRISURE^® VIPTERA™ trait; sales of soybean and vegetable seeds were lower.

In Latin America, at the end of the season, an increase in second season corn in Brazil partly offset the effect of drought in Argentina and southern Brazil.  Seeds sales continued their rapid expansion, with growth of over 40 percent and market share gains in both corn and soybean.  Growth in Asia Pacific was also led by seeds, notably corn; crop protection sales were slightly lower owing to cold and wet conditions in Australasia and to range rationalization in India and Japan.  China and the emerging ASEAN markets showed strong growth across the business.

Product line sales

Double digit growth in Selective Herbicides was driven by AXIAL^® and by the corn portfolio, notably in Europe and North America. In the USA, solutions for resistant weeds are increasingly valued.  A decline in sales of Non-selective Herbicides reflected lower sales of GRAMOXONE^® in Asia-Pacific, notably Korea. Global sales of TOUCHDOWN^® increased. Fungicides sales were again higher: strong early demand in Europe and the expansion of AMISTAR^®, notably in the USA, more than offset lower sales in Latin America due to drought.  Growth in Insecticides reflected the further success of ACTARA^® and the further expansion of DURIVO^® on rice and vegetables.  Sales of FORCE^®, used to combat corn rootworm, were up by more than 50 percent.  Seed care sales increased by 24 percent driven by the global expansion of CRUISER^®.  Total sales of new crop protection products reached $242 million in the first quarter, an increase of 35 percent.

Sales of Corn & Soybean seeds rose by 13 percent driven by the success of the Corn portfolio in all regions.  North American revenues reflected lower licensing income for the quarter: underlying US Corn sales were up 16 percent.  US sales of Soybean were lower due to an expected acreage shift and to the ongoing transition to second generation herbicide tolerance technology.  Sales of Diverse Field Crops increased by 24 percent, driven by high-performing sunflower hybrids and sugar beet.  Vegetables sales were lower as consumers in Europe and North America reined back expenditure.

Lawn and Garden

The Lawn and Garden business comprises Professional Products and Flower seeds, and provides integrated solutions to professional growers of ornamental plants and to golf course superintendents. Sales in the first quarter were slightly lower because of the depressed consumer environment in Europe.

Mike Mack, Chief Executive Officer, 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.  The implementation of our integrated strategy is proceeding rapidly and we are already seeing benefits in the leverage of our portfolio and the commercial organization.  This underpins our confidence that we will continue to outperform an expanding market.  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."  

Syngenta is one of the world's leading companies with more than 26,000 employees in over 90 countries dedicated to our purpose: Bringing plant potential to life. Through world-class science, global reach and commitment to our customers we help to increase crop productivity, protect the environment and improve health and quality of life. For more information about us please go to www.syngenta.com.

Unaudited First Quarter Sales

Cautionary Statement Regarding Forward-Looking Statements

This document contains forward-looking statements, which can be identified by terminology such as 'expect', 'would', 'will', 'potential', 'plans', 'prospects', 'estimated', 'aiming', 'on track' and similar expressions. Such statements may be subject to risks and uncertainties that could cause the actual results to differ materially from these statements. We refer you to Syngenta's publicly available filings with the U.S. Securities and Exchange Commission for information about these and other risks and uncertainties. Syngenta assumes no obligation to update forward-looking statements to reflect actual results, changed assumptions or other factors. This document does not constitute, or form part of, any offer or invitation to sell or issue, or any solicitation of any offer, to purchase or subscribe for any ordinary shares in Syngenta AG, or Syngenta ADSs, nor shall it form the basis of, or be relied on in connection with, any contract therefore.

SOURCE Syngenta