Cheminova upgrades profits

Cheminova has raised its sales and profits forecast for 2008 following a boost from rising sales and prices for the herbicide, glyphosate. The company has increased its expected annual revenues by 5.8% to DKr5,500 million ($1,150 million at current rates). It predicted sales of DKr5,200 million ($1,087 million) following its first quarter results. Profits should reach DKr450-500 million ($94-105 million) rather than the previous estimate of DKr250-300 million ($52-63 million). Demand for its “most important product”, glyphosate, has risen as supply has fallen leading to higher prices, Cheminova says.
The company expects the market for the active ingredient to “normalise” in 2009 and then for its prices to fall. Sales of new products and Cheminova’s acquisition of a 50% stake in German agrochemical company Stahler (Stade) are producing “satisfactory” results and contributing to growth in line with expectations. Parent company Auriga decided last year to focus on its crop protection business and divest its non-related subsidiaries.