BASF sees emerging market potential for crop protection share

Date:08-10-2011

German chemicals company BASF SE foresees growth potential in the coming years in crop protection and plant biotechnology, particularly for crop protection in emerging markets, an executive board member told Dow Jones Newswires in an interview.

"We make a good 40% of our crop protection sales in emerging markets... by 2015 we want to make over 50% of sales from there," said Stefan Marcinowski, BASF's board member in charge of crop protection and plant biotechnology.

"We're expecting a good performance in South America in the second half of the year," said Marcinowski.

The manager couldn't promise that the division will reach its targeted 2011 earnings before interest and taxes, or Ebitda, margin of 25%.

"The 25% Ebitda margin is our general aim, good weather conditions and stable foreign exchange rates and stable harvest prices permitting," he said, adding that weather and currency were "not optimal" in the first half of the year.

He added BASF Agricultural Solutions, the company's smallest unit by sales, should achieve its aim of increasing sales and earnings in 2011.

Marcinowski said North and South America and certain Asian countries are in focus for growing genetically modified products, as those countries show "more willingness to accept these future technologies," unlike Europe.

The manager didn't rule out acquisitions in the crop protection business, but said the potential offering is limited and currently very expensive.