Makhteshim Agan sales up 20% in Q3 of 2011

Date:11-08-2011

Makhteshim Agan Industries (MAI) recorded a 19.8% jump in sales to $638.5 million in the third quarter of 2011. This reflected an increase in overall quantities sold, including the significant contribution of the Latin American region, and the full consolidation of the Company’s new activities in Korea and Mexico. Sales for the first nine months of 2011 totaled $2,142.1 million, a 15.3% increase compared with $1,857.2 million for the first nine months of 2010.

EBITDA for the third quarter of 2011 totaled $83.3 million, a 256.2% increase compared with the same period of last year. For the first nine months of 2011, EBITDA totaled $346.0 million, increased by 52.5%. Operating profit for the third quarter of 2011 totaled $50.1 million compared with an operating loss of $4.6 million for the third quarter of 2010. For the first nine months of 2011, operating profit totaled $249.3 million compared with $146.0 million for the first nine months of 2010.

Makhteshim Agan’s sales result ($ million)
Q3 ended September 30th	Q3 2011	Q3 2010	% change	Nine months 2011	Nine months 2010	% change
Sales	638.5	533.1	+19.8	2,142.1	1857.2	+15.3
EBITDA	83.3	23.5	+256.2	346.0	227.1	+52.5
Operating profit (loss)	50.1	(4.6)	-	249.3	146.0	+70.8

Sales by regions

Sales of the Company’s Latin American region grew by 28.5% year-over-year, reflecting improved performance in Brazil, together with the integration of the Mexico acquisition (AgroNews 2010-11-18).

The Company’s North American sales increased by 28.2%, reflecting a significant increase in quantities sold, which compensated for a slight decrease in the level of prices that prevailed during the period relative to the comparison period.

Sales of Asia Pacific & Africa region grew by 20.0%, driven by increased quantity sales and by the strengthening of the Australian dollar compared to the US dollar.

Increase in quantities sold (especially in Eastern Europe) and a positive currency effect led to sales of the European region grew by 8.2%.

Makhteshim Agan sales by region ($ million)
Q3 ended September 30th	Q3 2011	Q3 2010	% change	Nine months 2011	Nine months 2010	% change
Europe	207.0	191.4	+8.2	911.8	825.0	+10.5
Latin America	192.1	149.6	+28.5	420.2	371.3	+13.2
North America	95.6	74.5	+28.2	373.6	320.6	+16.6
Asia Pacific &Africa	117.6	98.0	+20.0	358.3	277.2	+29.3
Israel	26.1	19.6	+33.2	78.2	63.1	+23.9
Total	638.5	533.1	+19.8	2,142.1	1857.2	+15.3

Makhteshim Agan’s newly appointed Chairman of the Board, Mr. Yang Xingqiang is confident that MAI now has a strong platform to launch the next stage of its growth strategy with the ChemChina-MAI’s transaction completed.” (AgroNews 2011-10-19) And Mr. Erez Vigodman, President and CEO of Makhteshim Agan, commented, "In an atmosphere of rapid change and growing agricultural challenges, we continue to excel at offering a portfolio of effective, simple crop protection solutions to address our customers’ needs – an approach which begins with a personal relationship that gives us insight into their true challenges, and extends through a broad portfolio of products supported by a strong operational and commercial platform. We believe that the ChemChina merger will help us take all of these capabilities and more to the next level, resulting in another significant advancement that will accrue to the benefit of all our stakeholders.”