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Agrochemical maker Syngenta profit jumps 25% on higher demand
Feb. 10, 2009
The market analysts consider 2008 to be the worst year in recession since the Great Depression for most of the sectors including agrochemical as global demand for products dropped, which also indirectly affected the agricultural exports.
Chief Executive Officer Mike Mack said today in a statement, "2008 was an extraordinary year for agriculture in which acreage expanded and technology adoption accelerated."
Mack added, "Growers worldwide increased usage intensity for crop protection and planted higher value seeds, resulting in excellent crop yields globally. Syngenta was able to take full advantage of the favorable market environment thanks to the breadth of our portfolio and our global presence."
Agrochemical company Syngenta reported that net income for the fully year increased to $1.39 billion, or $14.63 a share, from $1.11 billion, or $11.42, a year earlier period.
The analysts expected the Basel, Switzerland-based company to post a profit of $1.38 billion in the same period.
Syngentas sales increased by as much as 26 percent to $11.62 billion as farmers purchased more pesticides and herbicides.. Excluding restructuring and impairment charges, its profit increased by 38 percent to $1.54 billion.
The company now plans a dividend payout of 6 Swiss francs per share, a proposal that will be submitted for shareholder approval at the annual meeting on April 21.
After 2008s buoyant agricultural markets that demonstrated the central role of technology in an ongoing drive to raise yields, this year the company expects to face adverse currency effects and 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." Mack continued.
"We remain confident in the strong fundamentals for agriculture and the outlook for our business, as demonstrated by the continuation of growth investments, our capacity expansion program and the significant dividend increase announced today."
Source: AHN
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