Syngenta’s Q3 agrochemical sales up 23%

Date:10-19-2011

Syngenta’s crop protection sales increased by 23% to $ 2,176 million in the third quarter of 2011. Volume expanded by 13%, representing the sixth consecutive quarter of double digit growth, and prices rose 3%. In the first nine months of the year, sales were up 13 percent at constant exchange rates at $10.4 billion.

Sales by regions

Latin America was still the largest market, which post 22% growth to $776 million.

A robust soybean crop price and the expectation of lower production in the USA are leading to increased investment by soybean growers in Brazil and Argentina. Corn sales were also up strongly with rapid adoption of both herbicides and traits.

In Europe, Africa and the Middle East, sales increased by 26% to $530 million led by France and the CIS. Expansion of the range is reinforcing our market-leading positions in both Russia and Ukraine.

In North America, sales increased by 23% to $467 million with broad-based volume growth in crop protection and slightly higher pricing. Seeds sales in the low season included normalized end-of-season rebates which compared with a positive adjustment in the third quarter of 2010.

In Asia Pacific, where sales increased by 23% to $403 million, robust growth in crop protection more than offset higher seeds returns in South East Asia.

Sales by categories

Strong growth in selective herbicides was driven by Latin America and by early orders in the USA, where solutions for weed resistance in corn and soybean are increasingly in demand. Non-selective herbicides sales increased reflecting higher TOUCHDOWN® sales in Latin America and the expansion of REGLONE® in the CIS. In Fungicides, the largest contribution came from the rapid expansion of usage in the emerging markets of Asia Pacific; in the USA, recognition of crop enhancement effects led to strong growth. Insecticides growth was led by ACTARA® and by the DURIVO® family, which is expanding rapidly in Latin America and is now launched on vegetables in China. Sales of professional products increased by 4 percent, with market share gains in Asia Pacific and in the consumer segment in Europe.

Combined sales of new crop protection products reached $484 million in the first nine months, an increase of 39 percent.

Growth in Corn & Soybean seeds was driven by Latin America, where investment in corn is increasing and we are seeing strong acceptance of our enhanced portfolio, including the Viptera™ trait. Sales of soybean seeds in Latin America more than doubled with the launch of new varieties and integrated solutions. Diverse Field Crops continued to show strong growth driven by sunflower in Argentina, with the acquisition of Maribo in sugar beet contributing 2 percent. Vegetables continued their track record of strong growth with expansion in all key crops.

Syngenta’s Q3 sales result ($ million)
..	2011	2010	change%
sales by business segment
Crop Protection	2176	1763	+ 23
Seeds	500	442	+13
Total	2663	2199	+21
sales by categories
Selective herbicides	453	302	+50
Non-selective herbicides	321	276	+17
Fungicides	565	503	+12
Insecticides	436	337	+29
Seed Care	256	202	+27
Professional products	108	97	+10
Others	37	46	-18
Total	2176	1763	+23
sales by regions
Europe, Africa and Middle East	530	419	+26
North America	467	381	+23
Latin America1	776	636	+22
Asia Pacific	403	327	+23
Total	2176	1763	+23

             (1) Mexico sales reported in Latin America (previously NAFTA).

Syngenta's nine-month sales result ($ million)
..	2011	2010	chang %
sales by business segment
Crop Protection	7810	6759	+16
Seeds	2592	2205	+18
Total	10365	8939	+16
sales by categories
Selective herbicides	2200	1922	+14
Non-selective herbicides	886	824	+8
Fungicides	2294	1991	+15
Insecticides	1294	1037	+25
Seed Care	686	571	+20
Professional products	375	339	+11
Others	75	75	-
Total	7810	6759	+16
sales by regions
Europe, Africa and Middle East	2682	2204	+22
North America	2035	1925	+6
Latin America1	1731	1469	+18
Asia Pacific	1362	1161	+17
Total	7810	6759	+16

             (1) Mexico sales reported in Latin America (previously NAFTA).

Mike Mack, Chief Executive Officer, said: “In the third quarter of 2011, positive volume momentum continued and crop protection pricing improved as a result of the actions we have implemented. Our performance reflects the breadth of our portfolio, augmented by rapid growth in new crop protection products and the expansion of our corn trait coverage. In addition we expect the launch of integrated offers, such as our solutions for soybean in Latin America, to further reinforce our market positions.

"For the full year we expect substantial top line growth, higher profitability at constant exchange rates and a significant increase in free cash flow.”