July 26, 2007

Syngenta H1 profit seen to reach US$1.171 billion on corn demand

Biotech firm Syngenta is projected to report a good 1st half performance with net profit expected to reach US$1.171 billion due to surging demand for the Swiss agro-chemicals group's corn products on booming bioethanol.

Analysts polled by Thomson Financial News forecast a net profit of US$1.116 to US$1.303 billion or US$1.171 billion on average, up from US$1.056 billion in the year-earlier period.

EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) is seen reaching US$1.688 billion to US$1.745 billion, or US$1.707 billion on average, up from US$1.540 billion, while sales are expected to rise to US$5.597 billion to US$5.786 billion, or US$5.661 billion on average, up from US$5.201 billion a year ago.

Analysts said focus will be on the group's ability to expand market share amid heightened demand in the sector.

Trade players are also looking forward to Syngenta's new chief financial officer John Ramsay, who replaced Domenico Scala earlier this month.