Mar. 12, 2013
Revenues rose by 5.3% to $2,834.5 million in 2012. Revenues increased by 5.5% to $579.5 million in the fourth quarter ended Dec 31,2012. The primary contributors to growth in sales were an increase in the quantity of products sold and higher selling prices, partially offset by currency effects.
Gross profit in 2012 amounted to $899.6 million compared with gross profit of $841.5 million in 2011. Gross profit for the fourth quarter of 2012 amounted to $158.7 million compared to $149.8 million. The improvement in gross profit and gross margins during FY 2012 and the fourth quarter derived from a rise in selling prices, increased sales volume, as well as an improved product mix.
Operating profit in 2012 amounted to $281.6 million compared with operating profit of $243.1 million in 2011. Operating profit in the fourth quarter of 2012 amounted to $3.0 million compared with an operating loss in the amount of $6.2 million during the corresponding quarter of the previous year.
EBITDA for FY 2012 was $429.8 million (15.2% of sales) compared to $372.8 million (13.8% of sales) for FY 2011, an increase of 15.3%. EBITDA for the fourth quarter of 2012 was $41.1 million (7.1% of sales) compared to $26.6 million (4.8% of sales) for the comparable period in 2011.
Makhteshim Agan’s sales results ($ million)
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||||||
Q4 ended Dec. 31
|
Q4 2012
|
Q4 2011
|
%change
|
Full Year 2012
|
Full Year 2011
|
% change
|
Sales
|
579.5
|
549.3
|
5.5%
|
2,834.5
|
2,691.4
|
5.3%
|
Gross profit
|
158.7
|
149.8
|
5.9%
|
899.6
|
841.5
|
6.9%
|
Net income
|
(21.9)
|
(26.7)
|
17.8%
|
122.6
|
120.7
|
1.6%
|
EBITDA1
|
41.1
|
26.6
|
54.3%
|
429.8
|
372.8
|
15.3%
|
1.earnings before interest, tax, depreciation and amortization
|
Sales in Latin America for fiscal year 2012 amounted to $642.9 million compared with $609.3 million in 2011, a 5.5% increase. For the fourth quarter of 2012, sales in Latin America totaled $210.1 million compared to $189.1 million for the comparable period in 2011, an increase of 11.1%. Increased sales for the year and the quarter resulted due to both the increases in selling prices and higher sales volume. Sales in Brazil were positively affected by the receipt of several key product registrations.
North American sales for FY 2012 rose to $497.5 million from $478.4 million for 2011, an increase of 4%. During the fourth quarter of 2012, sales in North America rose to $107.6 million from $104.7 million for the corresponding period in 2011, an increase of 2.7%. The increase during the year and quarter arose mainly from increased sales volume, partially offset by a decrease in selling prices and despite challenging weather conditions in the US.
European sales for 2012 were $1,092.4 million compared to $1,049.3 million for 2011, an increase of 4.1%, attributable to a rise in selling prices, partially offset by the erosion in exchange rates (excluding the currency hedging transactions carried out by the Company. During the fourth quarter of 2012, sales in Europe totaled $136.6 million compared to $137.5 million for the same period in 2011. Sales remained stable due to the strengthening of the US dollar against local currencies).
Makhteshim Agan’s sales results by regions ($ million)
|
||||||
Q4 ended Dec. 31
|
Q4 2012
|
Q4 2011
|
%change
|
Full Year 2012
|
Full Year 2011
|
%change
|
European
|
136.6
|
137.5
|
0.7%
|
1,092.4
|
1,049.3
|
4.1%
|
Latin America
|
210.1
|
189.1
|
11.1%
|
642.9
|
609.3
|
5.5%
|
North America
|
107.6
|
104.7
|
2.7%
|
497.5
|
478.4
|
4.0%
|
Asia Pacific
|
98.3
|
93.6
|
5.0%
|
497.3
|
451.9
|
10.0%
|
Israel
|
27.0
|
24.4
|
10.7%
|
104.4
|
102.6
|
1.8%
|
Total
|
579.6
|
549.3
|
5.5%
|
2,834.5
|
2,691.5
|
5.3%
|
"We demonstrated significant growth in all of the geographical regions in which we operate, specifically in emerging markets while strengthening our infrastructure and capabilities in these markets. At the same time, we continued to focus on implementing our strategic and operational change program. To support this effort, we continued to launch differentiated, value adding, effective solutions to support and cement our market position, as we seek to simplify agriculture everywhere, whilst continuously improving our capabilities in areas such as manufacturing, supply chain, registration, product development, and product portfolio”.
"As part of our strategic initiatives we pursued intensive activities designed to strengthen our competitive position worldwide. Our activities are targeted at creating an infrastructure for continuous expansion and profitable growth which includes strengthening our abilities in areas such as: R&D, development of differentiated and unique products, advanced IT systems, advanced marketing capabilities, and innovation culture . At the same time we are realizing the potential of our merger with ChemChina. We made steady progress in advancing our goal of creating an operational and commercial infrastructure in China that will enable us to ramp up our presence in the Asia Pacific region, to tap the growth potential in the growing Chinese market and support our global activities. We are confident that our activities will complement and significantly enhance MAI's global leadership position and will enable us to present a unique and differentiated business model in the crop protection industry,” concluded Vigodman.
Strategic Update
Merger with ChemChina
During 2012, progress was made in analysis and design of the operational and commercial potential within China for MAI. This process included investigation of assets and opportunities in China which would best serve MAI's strategic intent to create a substantial platform in China.
Strengthening Global Market and Customer Focus
During 2012, the Company created and filled two new executive positions, Ignacio Dominguez as Chief Commercial Officer and Jean-Marc Dardier, Head of Global Marketing. The new positions are meant to strengthen MAI’s market and customer focus, better harness its global marketing strengths and execute its market strategies.
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