- Sales 1 percent lower: currency
effect neutral
- Further momentum in Asia
Pacific
- Late start to season in
Europe
- Sales of new products more than
doubled
Group sales of $3.7 billion were 1 percent lower compared with
the first quarter of 2016. Volumes were stable and pricing slightly
lower. The more favourable currency trend which began in the second
half of 2016 continued, with the Russian Ruble and the Brazilian
Real strengthening against the dollar.
First quarter regional sales at CER1
Sales in Europe, Africa and the Middle East were
unchanged despite a late start to the season in Northern and
Central Europe, due to cold weather. This was offset by an
excellent performance in South East Europe and ongoing growth in
the CIS, as well as by solid growth in France due to the highly
successful launch of ELATUS™ PLUS at the end of 2016.
In North America, a decline in Seeds sales was largely
due to a timing difference in the receipt of trait royalties. Crop
Protection sales showed robust growth driven by the ongoing success
of TRIVAPRO™, based on SOLATENOL™.
In Latin America, sales were 3 percent lower. Dry weather
in the second half of 2016, affecting the south of Brazil and
Paraguay, reduced demand for fungicides and herbicides.
In Asia Pacific sales were up 4 percent. The main driver
was ASEAN, with a continuing good corn seed performance. China grew
based on the adoption of fungicides, notably AMISTAR®.
First quarter product line sales at CER1
Sales of Selective herbicides were primarily impacted by
the late start to the season in Europe. In the USA, ACURON™ and
DUAL GOLD® continued to expand despite competitive market
conditions. Sales of Non-selective herbicides were also
lower due to softness in glyphosate. Growth in Fungicides
was driven by SOLATENOL™ based products in France, Germany and USA.
This more than offset the impact of market weakness in Latin
America. Insecticides sales were down due to lower sales in
Northern Europe. Seedcare sales were slightly higher, with
good performances by CRUISER® and FORTENZA® in Latin America.
Corn seed sales grew strongly in both Latin America and
Asia Pacific. In North America corn sales were down due to trait
royalty timing. Soybean sales were also slightly lower. Diverse
field crops registered double digit growth driven primarily by
sunflowers. Vegetables recorded growth in Europe and Latin
America.
1 At constant exchange rates
Erik Fyrwald, Chief Executive Officer, said:
“While conditions for growers at the start of 2017 remain
difficult, our business is steady and currencies are no longer a
drag on our performance. For the full year we maintain our targets
of low single digit growth in sales, an improvement in the EBITDA
margin and strong free cash flow generation.
In recent weeks the ChemChina transaction has made very
significant progress, with the receipt of regulatory approvals
including the European Union and the USA. We look forward to
closing the transaction in May 2017.”
ChemChina transaction update
On April 13, ChemChina announced that the tender offers to
purchase all publicly held shares and ADSs will end on May 4, 2017.
The Board of Directors of Syngenta has unanimously recommended the
offer to shareholders.
About Syngenta
Syngenta is a leading agriculture company helping to improve
global food security by enabling millions of farmers to make better
use of available resources. Through world class science and
innovative crop solutions, our 28,000 people in over 90 countries
are working to transform how crops are grown. We are committed to
rescuing land from degradation, enhancing biodiversity and
revitalizing rural communities. To learn more visit
www.syngenta.com and www.goodgrowthplan.com. Follow us on Twitter®
at www.twitter.com/Syngenta.
Additional information and where to find it
This press release is for informational purposes only and does
not constitute an offer to purchase or a solicitation of an offer
to sell company securities. The solicitation and offer to buy
company securities is only made pursuant to the Swiss offer
prospectus and the offer to purchase and other documents relating
to the U.S. offer that have been filed with the US Securities and
Exchange Commission (“SEC”). At the time the US Public Tender Offer
was commenced, ChemChina and a designated direct or indirect
subsidiary filed a tender offer statement on Schedule TO with the
SEC and thereafter, the company filed a solicitation/recommendation
statement on Schedule 14d-9 with respect to the offer. Investors
and security holders are urged to read these materials carefully
since they contain important information, including the terms and
conditions of the offer. Investors and security holders may obtain
a free copy of these materials and other documents filed by
ChemChina and the company with the SEC at the website maintained by
the SEC at www.sec.gov. Investors and security holders may also
obtain free copies of the solicitation/recommendation statement and
other documents filed with the SEC by the company at
www.syngenta.com.
Cautionary statement regarding forward-looking
statements
Some of the statements contained in this press release are
forward-looking statements, including statements regarding the
expected consummation of the acquisition, which involves a number
of risks and uncertainties, including the satisfaction of closing
conditions for the acquisition, such as regulatory approval for the
transaction and the tender of at least 67% of the outstanding
shares of the company, the possibility that the transaction will
not be completed and other risks and uncertainties discussed in the
company’s public filings with the SEC, including the “risk factors”
section of the company’s form 20-F filed on February 16, 2017 as
well as the tender offer documents filed by the offeror and the
solicitation/recommendation statement filed by the company. These
statements are based on current expectations, assumptions,
estimates and projections, and involve known and unknown risks,
uncertainties and other factors that may cause results, levels of
activity, performance or achievements to be materially different
from any forward-looking statements. These statements are generally
identified by words or phrases such as “believe”, “anticipate”,
“expect”, “intend”, “plan”, “will”, “may”, “should”, “estimate”,
“predict”, “potential”, “continue” or the negative of such terms or
other similar expressions. If underlying assumptions prove
inaccurate or unknown risks or uncertainties materialize, actual
results and the timing of events may differ materially from the
results and/or timing discussed in the forward-looking statements,
and you should not place undue reliance on these statements. The
offeror, ChemChina and the company disclaim any intent or
obligation to update any forward-looking statements as a result of
developments occurring after the period covered by this press
release or otherwise.
Unaudited first quarter sales
For the quarter ended March 31, ($m)
2017 2016 Actual %
CER1 % Group sales
Europe, Africa, Middle East 1,740 1,747 - - North
America 946 986 - 4 - 5 Latin America 393 399 - 1 - 3 Asia
Pacific 448 430 + 4 + 4
Total
regional sales 3,527 3,562 - 1 - 1
Controls 117 112 + 5 + 2 Flowers 66 68
- 2 -
Group sales 3,710
3,742 - 1 - 1 Crop Protection
by region Europe, Africa, Middle East 1,218 1,274 - 4 - 3 North
America 624 596 + 5 + 4 Latin America 307 344 - 11 - 11 Asia
Pacific 405 390 + 4 + 3
Total 2,554 2,604 -
2 - 2 Seeds by region Europe,
Africa, Middle East 526 480 + 10 + 7 North America 332 398 - 17 -
17 Latin America 94 59 + 60 + 47 Asia Pacific 44
42 + 5 + 4
Total
996 979 + 2 -
Sales by business Crop Protection 2,554 2,604 - 2 - 2
Seeds 996 979 + 2 - Elimination of Crop Protection sales to
Seeds -23 -21 n/a n/a
Total regional
sales 3,527 3,562 - 1 - 1 Controls
117 112 + 5 + 2 Flowers 66 68 - 2
-
Group sales 3,710
3,742 - 1 - 1
1 Growth at constant exchange rates
Unaudited first quarter product line sales
For the quarter ended March 31, ($m)
2017 2016 Actual %
CER1 % Selective herbicides 829
880 - 6 - 6 Non-selective herbicides 141 150 - 6 - 11
Fungicides 922 908 + 2 + 2 Insecticides 378 387 - 2 - 4 Seedcare
254 244 + 4 + 2 Other crop protection 30 35 -
15 + 49
Total Crop Protection 2,554
2,604 - 2 - 2 Corn and
soybean 487 520 - 7 - 8 Diverse field crops 364 317 + 15 + 10
Vegetables 145 142 + 2 + 5
Total
Seeds 996 979 + 2
- Elimination of Crop Protection sales to
Seeds -23 -21 n/a n/a Controls 117 112
+ 5 + 2 Flowers 66 68 - 2 -
Group sales 3,710 3,742
- 1 - 1
1 Growth at constant exchange rates
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version on businesswire.com: http://www.businesswire.com/news/home/20170423005068/en/
Syngenta International AGMedia OfficeTel: +41
61 323 2323Fax: +41 61 323
2424www.syngenta.comorMedia:Leandro Conti, +41 61 323
2323SwitzerlandorPaul Minehart, +1 202 737
8913USAorAnalyst/Investor contacts:Jennifer
GoughSwitzerland, +41 61 323 5059USA, +1 202 737 6521
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