April 16, 2009
Syngenta posts sales loss in 1Q on dollar appreciation
Swiss agribusiness company Syngenta AG (SYT) said Wednesday first-quarter sales were down 4 percent, citing the significant appreciation of the dollar.
In the first quarter, Syngenta achieved strong underlying sales growth after a record year in 2008. Sales increased by 7 percent at constant exchange rates (CER) and reported sales were 4 percent lower at US$3.6 billion due to significant appreciation of the dollar.
Crop Protection sales were 8-percent higher CER at US$2.6 billion. Sales rose by 10 percent with volumes up 2 percent and price realization ahead of target at 8 percent.
Sales increased in Europe with a strong performance in Western Europe, notably France while in Eastern Europe, growth was led by Russia and Poland.
In the North American Free Trade Agreement (NAFTA), Syngenta capitalized on its strong market position and saw good growth across all product lines.
Second season sales in Latin America were lower due to the drought in Argentina and southern Brazil and careful risk management.
Growth in Asia-Pacific was particularly strong in the emerging markets demonstrating the resilience of the farm economy in these countries.
Seeds sales were 3-percent higher CER at US$1.1 billion. Corn and soy sales increased by 7 percent despite delayed planting decisions in the US and corn acreage contraction in Europe while growth primarily reflected improvements in corn and price increases.
