Sales of Syngenta's agrochemical business up 3% in Q3

Syngenta’s crop protection sales rose by 2.7% to $2,130 million in the third quarter of 2012 ended September 30th driven by an excellent performance in Latin America. Sales were up 7% at constant exchange rates (CER). Seeds business was $442 million, up by 2.1%. Total sales, including crop protection, seed, lawn and garden business, were up by 1.3% to $2,698 million. Nine-month crop protection sales of 2012 went up 4.6% to $7,804 million. Group sales in the first nine months grew by 5.8% to a record $10,963 million, with volume up 6% and prices up 3%.

Syngenta’s sales result ($million)
Q3 ended Sep. 30th	Q3 2012	Q3 2011	change%	9 months 2012	9 months 2011	change%
Crop Protection	2,130	2,075	+2.7	7,804	7,458	+4.6
Seeds	442	433	+2.1	2,637	2,308	+14.3
Elimination Crop Protection sales to Seeds	(21)	(13)	n/a	-61	-38	n/a
Total	2,551	2,495	+2.2	10,380	9,728	+6.7
Lawn and Garden(1)	147	168	-12.5	583	637	-8.5
Group Sales	2,698	2,663	+1.3	10,963	10,365	+5.8
(1)Includes product lines Professional Products and Flowers. Professional Products were formerly reported under Crop Protection and Flowers under Seeds.

Third quarter regional sales

Total integrated sales increased by 7% at constant exchange rates. In Latin America, a strong start to the season drove sales growth of 18%, with expansion across all product lines. High soybean prices are leading to acreage expansion and increased investment by soybean growers in Brazil and Argentina.

Sales of crop protection for sugar cane doubled as a result of rapid technology adoption. In Asia Pacific, sales increased 3%. Significant growth in Corn seeds, notably in South East Asia, demonstrates the continuing momentum of an enhanced corn portfolio. Vegetables seeds showed a marked recovery with double digit growth. Crop protection sales were lower in Japan and also in India, owing to a delayed monsoon; expanding seed care use across the region was reflected in sales growth of more than 50%. 

In Europe, Africa and the Middle East, the success of the integrated hybrid barley product offer drove sales particularly in Germany and Northern Europe.

Eastern Europe maintained its record of broad-based growth, with sales in the CIS up by almost 20%. Overall crop protection sales in the low season were unchanged after a strong first half, with significant growth in fungicides offsetting lower herbicide and insecticide sales. In North America, crop protection sales were broadly unchanged despite a reduction in fungicide applications due to drought and a shift in selective herbicides phasing to the fourth quarter. Non-selective herbicides and seed care grew strongly; in addition, sales of FORCE® tripled with increasing grower awareness of resistance to a competitor’s corn rootworm trait.

Syngenta’s crop protection sales result by region ($million)
Q3 ended Sep. 30th	Q3 2012	Q3 2011	change%	9 months 2012	9 months 2011	change%
Europe, Africa and Middle East	453	511	-11.4	2,585	2,604	-0.7
North America	416	425	-2.1	2,155	1,872	+15.1
Latin America	924	765	+20.8	1,850	1,699	+8.9
Asia Pacific	337	374	-9.9	1,214	1,283	-5.4
Total	2,130	2,075	+2.7	7,804	7,458	+4.6

Syngenta’s seed sales result by region ($million)
Q3 ended Sep. 30th	Q3 2012	Q3 2011	change%	9 months 2012	9 months 2011	change%
Europe, Africa and Middle East	129	135	-4.4	1,018	977	+4.2
North America	53	66	-19.7	1,106	876	+26.3
Latin America	199	187	+6.4	331	291	+13.7
Asia Pacific	61	45	+35.6	182	164	+11.0
Total	442	433	+2.1	2,637	2,308	+14.3

Third quarter product line sales

Growth in Selective herbicides in Latin America largely offset lower sales in Europe and in North America. Non-selective herbicides sales increased 13% reflecting strong demand in Latin America and an increase in REGLONE® sales in Canada.

Fungicides in Europe were driven by AMISTAR® and by the new product REVUS®. This, together with growth in Latin America, more than offset the impact of drought in North America.

Insecticides sales reflected strong performances by DURIVO® in all regions, ACTARA® in Latin America and FORCE® in the USA.

In Seed care, increasing recognition of the yield and vigor benefits offered by CRUISER® was reflected in sales growth of over 30%; adoption of AVICTA® against nematodes accelerated.

Growth in Corn and soybean sales was driven by Latin America and by Asia Pacific, where new corn hybrids were introduced in Indonesia and the trait offer in the Philippines expanded. This is more than offset end-of-season adjustments in North America and Europe. Diverse field crops sales, which include hybrid barley seeds, were up by 35%. Vegetables sales continue to be affected by weak consumer demand in southern Europe and North America, but grew strongly in Latin America and Asia Pacific.

Syngenta’s sales result by category ($million)
Q3 ended Sep. 30th	Q3 2012	Q3 2011	change%	9 months 2012	9 months 2011	change%
Selective Herbicides	428	453	-5.5	2,350	2,200	+6.8
Non-selective Herbicides	351	321	+9.3	948	886	+7.0
Fungicides	554	565	-1.9	2,286	2,294	-0.3
Insecticides	456	436	+4.6	1,328	1,294	+2.6
Seed Care	303	256	+18.4	787	686	+14.7
Other Crop Protection	38	44	-13.6	105	98	+7.1
Total Crop Protection	2,130	2,075	+2.7	7,804	7,458	+4.6
Corn and Soybean	182	175	+4.0	1,450	1,137	+27.5
Diverse Field Crops	104	84	+23.8	653	599	+9.0
Vegetables	156	174	-10.3	534	572	-6.6
Total Seeds	442	433	+2.1	2,637	2,308	+14.3
Elimination Crop Protection sales to Seeds	-21	-13	n/a	-61	-38	n/a
Lawn and Garden(1)	147	168	-12.5	583	637	-8.5
Group Sales	2,698	2,663	+1.3	10,963	10,365	+5.8
(1)Includes product lines Professional Products and Flowers. Professional Products were formerly reported under Crop Protection and Flowers under Seeds.

Third quarter Lawn and Garden sales

The divestment of Fafard in North America reduced sales by $10 million.

Crop pipelines

In 2012 Syngenta has held two crop updates focusing on four of its strategic crops: Cereals, Corn, Rice and Vegetables. Increased pipeline targets for these crops support a revised total sales target for all eight key crops of $25 billion by 2020. These targets comprise growth in the existing portfolio and the launch of new products, with an increasing emphasis on integrated offers reflecting the new R&D and crop team structure.

Outlook

Mike Mack, Chief Executive Officer said: “Continued growth in the third quarter demonstrates the breadth of our portfolio and the gathering momentum of our strategy. In Latin America, where Brazil is in its third year of integration, we are starting to realize the full potential of our leading commercial offers and new technologies. This, together with the increase in our targets for key crops, gives us increased confidence in our long term growth potential. We will continue to invest in growth opportunities while maintaining a high level of profitability. For the full year 2012, we expect an increase in the EBITDA margin at constant exchange rates and strong growth in earnings per share.”