Nissan Chemical’s agrochem sales up 7% in H1

Nissan Chemical’s agrochemical sales rose by 7.3% to Yen 13,372 million ($168.5 million) in the first half year of fiscal year of 2012 which ended September 30th. Operating income of agrochemical business increased by 64.9% to Yen 1,349 million ($17.0 million).

Herbicides are the main category of Nissan’s agrochemical business, which account for 65% of total sales in fiscal year of 2011. Insecticides accounted for 18% of total sales, followed by fungicides (13%), plant growth regulators (2%) and fungicide & insecticide (2%). Sale of company’s main herbicide product glyphosate was up 12% in the first half year of 2012.

Export sales account for about 20% of fiscal year 2011 non-consolidated segment sales, in which Asia was the major export destination, accounting for 49% of total export sales. Europe & Africa accounted for 24% and North/Central/South America 27%. The company commented that acquisition of 3% share of IHARABRÁS (leading agro company in Brazil) in September 2011 strengthened company’s R&D and marketing capabilities in the rapidly growing market in Latin America.

Outlook

Nissan anticipates that sales will up Yen 0.4 billion and operating income will down Yen 0.1 billion in the second half year. The company is going to launch new paddy rice herbicide ALTAIR in Japan in December 2012. It’s expected sales of miticide STARMITE, fungicide LEIMAY and herbicide ROUNDUP will up, and herbicide SIRIUS down. The fixed cost is estimated to up due to depreciation expenses of ALTAIR facilities and full reconstruction of Biological Research Laboratories during fiscal year 2010-2015.