Swiss agribusiness Syngenta AG (SYT) reported Friday a 21 percent rise in third-quarter sales, reflecting improved volume and prices mainly in crop protection segment. Looking ahead for the full year, the company said it expects substantial top line growth, higher profitability at constant exchange rates and a significant increase in free cash flow.
Third-quarter sales grew to $2.66 billion from last year's $2.20 billion. At constant exchange rates, sales rose 16 percent.
The strong performance reflected 13 percent rise in volume, representing the sixth consecutive quarter of double digit growth, and 3 percent increase in prices.
Mike Mack, chief executive officer, said, "In the third quarter of 2011, positive volume momentum continued and crop protection pricing improved as a result of the actions we have implemented. 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."
Segment-wise, crop protection sales were $2.18 billion, representing reported growth of 23 percent and constant currency growth of 19 percent from last year. Seeds sales also grew 13 percent to $500 million, and the increase was 8 percent in constant currency.
Latin American sales increased strongly across the portfolio. In Europe, Africa and the Middle East, sales growth was led by France and the CIS, and growth in North America reflected broad-based volume growth in crop protection and slightly higher pricing. In Asia Pacific, sales climbed as robust growth in crop protection more than offset higher seeds returns in South East Asia.
In Crop Protection segment, sales of selective herbicides surged 50 percent driven by Latin America and by early orders in the USA.
Growth in non-selective herbicides reflected higher Touchdown sales in Latin America and the expansion of Reglone in the CIS.
Fungicides sales grew 12% and insecticides sales were up 29 percent. sales growth was 27% in seed Care and 10% in professional products.
All regions posted double-digit sales growth in crop protection during the quarter.
In seeds segment, all product lines posted increased sales, with a 14 percent rise in Corn & Soybean, 25 percent climb in Diverse Field Crops, 11 percent growth in Vegetables and a 4 percent increase in Flowers sales.
Among regions, seed sales in Europe, Africa and Middle East grew 13 percent and Latin American sales were up 60 percent. Meanwhile, these were partly offset by a 27 percent decline in North American sales and a 2 percent drop in Asia Pacific.
Looking ahead, Mack said, "We expect the launch of integrated offers, such as our solutions for soybean in Latin America, to further reinforce our market positions."
SYT closed Thursday's regular trading session at $59.09, up $0.32 or 0.54 percent.
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