BASEL, Switzerland,
April 16, 2014 /PRNewswire/ --
- Strong start to European season
- Ongoing emerging market growth
- North American season delayed by weather
- On track to achieve full year sales growth target
Sales in the first quarter of 2014 increased by 5 percent at
constant exchange rates. The increase in reported sales was 2
percent owing to the depreciation of a number of emerging market
currencies against the dollar.
Integrated sales
Integrated sales rose by 5 percent at constant exchange rates,
with volumes up 2 percent and prices 3 percent higher. In
Europe, Africa and the Middle East growth of 10 percent was
driven primarily by crop protection, with an early start to the
season and high weed, disease and insect pressure. Growth continued
in the CIS despite political instability, with price increases
partly offsetting local currency depreciation. In
North America, prolonged
cold temperatures delayed the start to the US season across the
corn belt, while drought in California reduced demand for insecticides and
fungicides. Canada saw good growth
with the continuing success of VIBRANCE® seedcare and
the expansion of canola and sugar beet seed sales.
In Latin America the
pace of growth improved compared with the fourth quarter of 2013
despite dry conditions in Brazil
and Argentina. High caterpillar
pressure contributed to a significant increase in insecticide sales
and in Venezuela business resumed
following resolution of a payment delay. Sales of
ELATUS™ progressed well in Paraguay and Bolivia; registration in Brazil was announced on February 28. In Asia
Pacific, growth was strong across both developed and
emerging markets. In Australasia, herbicide sales in particular
benefited from distributor support for our early season offers and
from rainfall in March. In China,
sales of AMISTAR® technology doubled with expansion on
rice and vegetables; South Asia
saw strong demand for both crop protection and seeds in
rice.
Product line sales
Sales of Selective herbicides increased by 6 percent
despite the delayed season in the USA. Europe
saw strong growth in corn and cereals; in Latin America the greater incidence of
glyphosate-resistant weeds boosted demand. In Non-selective
herbicides a planned reduction in glyphosate volumes was more
than offset by strong growth in GRAMOXONE®. In
Fungicides sales of our new SDHI product SEGURIS®
more than doubled, contributing to broad-based growth across
Europe. Latin America saw double digit fungicides
growth with increased use on cotton. The main driver of
Insecticides growth was the continuing expansion of
DURIVO®, notably in Latin
America. Increased pest pressure and the replacement of
neonicotinoid chemistry drove sales of FORCE® in
Europe. Seedcare sales were
lower partly due to the suspension of neonicotinoids, including
CRUISER®, for certain crops in the EU. Latin American
sales were also lower on reduced corn acreage. New launches
included FORTENZA® in Argentina and the new biological product
CLARIVA™ for soybean cyst nematode in the USA.
In seeds, Corn and soybean sales were unchanged, with US
growers delaying planting decisions. In Latin America sales reflected lower second
season corn acreage in Brazil.
Sales of our tropical corn germplasm in Asia Pacific continued to expand rapidly.
Growth in Diverse field crops was driven by ongoing growth
in the CIS; this was partly offset by lower sunflower acreage in
other European countries. In Vegetables the recovery in
developed markets continued with strong growth in Europe, and sales continued their growth
trajectory in Latin America.
Global growth in Vegetables adjusted for the divestment of Dulcinea
was 9 percent.
Lawn and Garden reflected modest growth in Europe and a decline in North America due to the weather. Sales in
Latin America and Asia Pacific grew strongly.
Mike Mack, Chief Executive
Officer said: "We have made a solid start to the year despite
adverse weather conditions in North
America. For the full year we maintain our sales growth
expectation for the integrated business of 6 percent at constant
exchange rates. As stated in February, lower seeds costs in 2014
will result in gross margin improvement. Research and development
spend will increase and will be at the upper end of the targeted
9-10 percent of sales range. Given the depreciation of a number of
emerging market currencies in the first quarter, the impact of
currencies on full year EBITDA is likely to be around $100 million compared with an earlier forecast of
$50 million. We continue to forecast
a significant increase in free cash flow before acquisitions to
around $1.5 billion."
A presentation illustrating the first quarter 2014 sales will be
available on http://www.syngenta.com/q1-2014 by 07:30 (CET).
Syngenta is one of the world's leading companies with more than
28,000 employees in over 90 countries dedicated to our
purpose: Bringing plant potential to life. Through world-class
science, global reach and commitment to our customers we help to
increase crop productivity, protect the environment and improve
health and quality of life. For more information about us please go
to www.syngenta.com.
Cautionary Statement Regarding Forward-Looking
Statements
This document contains forward-looking statements, which can be
identified by terminology such as 'expect', 'would', 'will',
'potential', 'plans', 'prospects', 'estimated', 'aiming', 'on
track' and similar expressions. Such statements may be subject to
risks and uncertainties that could cause the actual results to
differ materially from these statements. We refer you to Syngenta's
publicly available filings with the U.S. Securities and Exchange
Commission for information about these and other risks and
uncertainties. Syngenta assumes no obligation to update
forward-looking statements to reflect actual results, changed
assumptions or other factors. This document does not constitute, or
form part of, any offer or invitation to sell or issue, or any
solicitation of any offer, to purchase or subscribe for any
ordinary shares in Syngenta AG, or Syngenta ADSs, nor shall it form
the basis of, or be relied on in connection with, any contract
there for.
Unaudited first
quarter sales
|
|
|
|
|
For the quarter
ended March 31,
|
($m)
|
2014
|
2013
|
Actual
%
|
CER1
%
|
Group
sales
|
|
|
|
|
|
Europe, Africa,
Middle East
|
2095
|
1936
|
+8
|
+10
|
|
North
America
|
1232
|
1341
|
-8
|
-7
|
|
Latin
America
|
595
|
568
|
+5
|
+9
|
|
Asia
Pacific
|
558
|
525
|
+6
|
+14
|
|
Total integrated
sales
|
4480
|
4370
|
+2
|
+5
|
|
Lawn and
Garden
|
202
|
200
|
+1
|
+1
|
|
Group
sales
|
4682
|
4570
|
+2
|
+5
|
Crop Protection by
region
|
|
|
|
|
|
Europe, Africa,
Middle East
|
1427
|
1267
|
+13
|
+13
|
|
North
America
|
792
|
890
|
-11
|
-9
|
|
Latin
America
|
529
|
500
|
+6
|
+9
|
|
Asia
Pacific
|
496
|
468
|
+6
|
+14
|
|
Total
|
3244
|
3125
|
+4
|
+6
|
|
|
|
|
|
|
Seeds by
region
|
|
|
|
|
|
Europe, Africa,
Middle East
|
675
|
686
|
-1
|
+3
|
|
North
America
|
451
|
460
|
-2
|
-2
|
|
Latin
America
|
69
|
78
|
-12
|
-2
|
|
Asia
Pacific
|
64
|
58
|
+10
|
+18
|
|
Total
|
1259
|
1282
|
-2
|
+2
|
|
|
|
|
|
Sales by
business
|
|
|
|
|
|
Crop
Protection
|
3244
|
3125
|
+4
|
+6
|
|
Seeds
|
1259
|
1282
|
-2
|
+2
|
|
Elimination of
Crop Protection sales to Seeds
|
-23
|
-37
|
|
|
|
Total integrated
sales
|
4480
|
4370
|
+2
|
+5
|
|
Lawn and
Garden
|
202
|
200
|
+1
|
+1
|
|
Group
sales
|
4682
|
4570
|
+2
|
+5
|
|
1
Growth at constant exchange rates
|
First quarter
product line sales
|
|
|
|
|
For the quarter
ended March 31,
|
($m)
|
2014
|
2013
|
Actual
%
|
CER1
%
|
|
Selective
herbicides
|
1055
|
1011
|
+4
|
+6
|
|
Non-selective
herbicides
|
305
|
302
|
+1
|
+5
|
|
Fungicides
|
1004
|
926
|
+8
|
+9
|
|
Insecticides
|
513
|
480
|
+7
|
+11
|
|
Seedcare
|
322
|
379
|
-15
|
-11
|
|
Other crop
protection
|
45
|
27
|
+71
|
+70
|
|
Total Crop
Protection
|
3244
|
3125
|
+4
|
+6
|
|
Corn and
soybean
|
684
|
700
|
-2
|
-
|
|
Diverse field
crops
|
402
|
415
|
-3
|
+3
|
|
Vegetables
|
173
|
167
|
+4
|
+5
|
|
Total
Seeds
|
1259
|
1282
|
-2
|
+2
|
|
Elimination of
Crop Protection sales to Seeds
|
-23
|
-37
|
|
|
|
Lawn and
Garden
|
202
|
200
|
+1
|
+1
|
|
Group
sales
|
4682
|
4570
|
+2
|
+5
|
|
1
Growth at constant exchange rates
|
Syngenta International AG
Media
Office
CH-4002 Basel
Switzerland
Tel:
+41 61 323 23 23
Fax:
+41 61 323 24 24
www.syngenta.com
|
|
|
Media
contacts:
Paul
Barrett
Switzerland +41
61 323 2323
Paul
Minehart
USA
+1 202 737 8913
|
|
|
Analyst/Investor
contacts:
Jennifer
Gough
Switzerland +41
61 323 5059
USA
+1 202 737 6521
Lars
Oestergaard
Switzerland +41
61 323 6793
USA
+1 202 737 6520
|
SOURCE Syngenta International AG