Makhteshim Agan recorded 14% growth in 2011

Date:03-15-2012

Makhteshim Agan Industries (MAI) posted a 9.0% increase in sales to $549.3 million in the fourth quarter of 2011compared with the same period last year. MAI highlights that higher sales are derived from volume growth driven by favorable climatic conditions, increase in planting areas in 2011 and higher prices for agricultural commodities. During the same period the company witnessed a relatively stable pricing environment. The strengthening of some of the currencies in which MAI operates also contributed to the sales growth. Full year sales of 2011 grew by 14% to reach $2,691.4 million, resulted from double digit gains across all of operating regions, especially the APAC region and North America.

Including one-time charges, EBITDA was $372.8 million in 2011 compared to $141.7 million in 2010, and fourth quarter EBITDA was $26.6 million compared to $85.4 million loss for the comparable period in 2010.

Operating profit in 2011 amounted to $243.1 million compared with operating profit less one-time charges in the amount of $147.9 million for 2010, and $649.2 million, including one-time charges in 2010. Operating loss in the fourth quarter of 2011 amounted to $6.2 million compared with an operating loss in the amount of $11.6 million during the corresponding quarter of the previous year, less one time charges, and an operating loss of $139.7 million, including one-time charges, in the corresponding quarter of 2010.  The decrease in operating loss during the quarter was due primarily to the non-recurrence of the one-time charges in the fourth quarter of 2010.

Makhteshim Agan’s sales result ($ million)
Year ended 31st Dec.	Q4 2011	Q4 2010	% change	2011	2010	% change
Sales	549.3	505.1	+9	2,691.4	2,362.2	+14
EBITDA (loss)	26.6	(85.4)	-	372.8	141.7	+163
Operating profit (loss)	(6.2)	(139.7)	-	243.1	6.2	-

Sales by regions

On a geographic basis, the strongest sales increases were in the Company’s Asia Pacific region which contributed $451.9 million for the year, a 24.4% increase from $363.3 million in 2010. The increase stems from increased sales volume, particularly in India, Korea and Australia, partially offset by currency exchange rates and a decrease in selling prices. For the fourth quarter of 2011, sales in the region rose to $93.6 million compared to $86.1 million for the comparable period in 2010, an increase of 8.7%.
 
Sales in Latin America for fiscal year 2011 amounted to $609.3 million compared with $539.6 million in 2010, a 12.9% increase, primarily due to increases in selling prices and higher sales volume derived from the inclusion of sales by the Company’s subsidiary in Mexico. For the fourth quarter of 2011, sales in Latin America totaled $189.1 million compared to $168.4 million for the comparable period in 2010, an increase of 12.3%. Increased sales resulted from increased selling prices, as well as the inclusion of the Mexican operation’s sales.
 
North American sales for FY 2011 rose to $478.4 million from $404.3 million for 2010, an increase of 18.3% arising from increased volume of sales, partially offset by a decrease in selling prices. During the fourth quarter of 2011, sales in North America rose to $104.7 million from $83.7 million for the corresponding period in 2010, an increase of 25.1%, due to increased selling volumes and higher prices in North America.
 
European sales for 2011 were $1,049.3 million compared to $965.6 million for 2010, an increase of 8.7%, attributable to increased sales volume. During the fourth quarter of 2011, sales in Europe totaled $137.5 million compared to $140.6 million for the same period in 2010, a decrease of 2.2%, resulting from decreased sales in Europe which were partially offset by higher selling prices and the strengthening of the Euro against the US dollar which increased the dollar value of sales.

Makhteshim Agan sales by region ($ million)
Year ended 31st Dec.	Q4 2011	Q4 2010	% change	2011	2010	% change
Europe	137.5	140.6	-2.2	1,049.3	965.6	+8.7
Latin America	189.1	168.4	+12.3	609.3	539.6	+12.9
North America	104.7	83.7	+25.1	478.4	404.3	+18.3
Asia Pacific	93.6	86.1	+8.7	451.9	363.3	+24.4
Israel	24.4	26.3	-7.3	102.6	89.4                                                                                                                                                             89.4	+14.7
Total	549.3	505.1	+9	2,691.4	2,362.2	+14

Mr. Erez Vigodman, President and CEO of Makhteshim Agan, pointed out they made significant progress on this front through the expansion of product portfolio in 2011. “In addition to our on-going development and registration activities, we entered into a collaboration with Monsanto in the area of weed resistance (AgroNews 2010-10-20), we acquired the rights and licenses of the active ingredient diuron and launched fipronil-based products in the US (AgroNews 2011-04-11). Our newly established agricultural technologies division will also support this strategic direction by scouting and developing our offering beyond crop protection.” 
 
"Following the conclusion of our merger with ChemChina in October (AgroNews 2011-10-19), we have initiated intensive activities to exploit its potential, including the possibility of creating a significant operational and commercial infrastructure in China based on ChemChina’s agrochemical assets, ramping up our presence in China, as well as the entire Asia Pacific region, and selling ChemChina products through our global sales and distribution channels.” 
 
"As we move forward, we are confident that the Company will continue to grow and prosper as we pursue our business strategy, reinforce and establish our global presence, broaden our product portfolio, steadily improve our Company's operational capacities and exploit the benefits arising from our merger with ChemChina,” concluded Vigodman.