Florida, US-based chemical supplier Nufarm has announced that its operating profits have come in at at a record US $163.9 million -- 36% higher than the previous year. Net profits, however, accounted for a 7% decline to $137.9 million due to a $22.6 million charge from a previously disclosed Brazilian barter trade and a $2.8 million foreign currency loss.
Strong performance across all Nufarm’s regional business accounted for the increase, said Managing Director Doug Rathbone. Improved climactic conditions in Australia spearheaded the rise, as did a US sales increase of 25%, and European sales increase of 26%.
Glyphosate demand was high, and Rathbone said that only a shortage had prevented Nufarm from selling a lot more. The company increased its investment in partnerships with Chinese manufacturers from $28 million to about $50 million to improve glyphosate supplies. Greater demand and growth in market share – particularly in the US and Europe – has Nufarm planning to sell more core products such as glyphosate. It will build on new markets in Italy in Eastern Europe, and strengthen its distribution in the US, Canada, Brazil, France, and Germany.
According to the company, a significant number of new products are scheduled for regulatory approval and launch, which will strengthen Nufarm's position in Europe’s valuable cereal fungicide and herbicide segments, as well as assist entry to the global seed treatment market.
Management predicted an after-tax operating profit for the year ahead of between $220 million and $230 million.
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