Syngenta 2008 Net Profit Up 25%, More Cautious On 2009
February 06 2009 - 2:05AM
Dow Jones News
Agrochemical company Syngenta AG (SYT) Friday reported a
lower-than-expected 25% rise in 2008 net profit, fueled by high
agricultural demand, but gave a guarded outlook for 2009.
The Basel-based producer of crop protection chemicals and seeds
said net profit in the 12 months to end-December rose to $1.39
billion from $1.11 billion a year ago. A poll of six analysts
surveyed by Dow Jones Newswires had foreseen net profit of $1.44
billion.
Earnings per share - excluding restructuring and impairment -
rose 42% to $16.26 from $11.45.
Sales were $11.62 billion, up 26% on $9.24 billion a year
ago.
The company said it aims to grow earnings per share this year.
It didn't repeat a previous guidance of growth "in the high teens"
in its EPS excluding non-recurring income, restructuring and
impairments.
"In 2009, adverse currency effects and the need for tight risk
management may limit growth in the emerging markets. Early signs
for the northern hemisphere season are encouraging and we are well
placed again to outperform the overall market, enabling us to
continue targeting growth in earnings per share in 2009 despite
economic uncertainty," Chief Executive Officer Mike Mack said.
Syngenta's shares closed Thursday at CHF224.90. They've fallen
about 20% in the past 12 months, but are up 12% year-to-date owing
to continuous strong demand from the agricultural markets, as
reflected by strong results form Syngenta's U.S. competitor
Monsanto Co. (MON) last month.
Company Web Site: www.syngenta.com
-By Julia Mengewein, Dow Jones Newswires; +41 43 443 80 45;
julia.mengewein@dowjones.com
(Martin Gelnar contributed to this article.)