Syngenta's 1Q13 Sales Rise - Analyst Blog

By
A A A
Share |

Last week, Switzerland based agricultural products company, Syngenta AG ( SYT ) reported improved sales for its first quarter of 2013. Being a half yearly reporting company, all the financials of Syngenta were not announced.

Sales in the reported quarter increased 6.0% year over year to $4.6 billion. This was led by a rise in revenue across most regions, viz., Latin America, Eastern Europe and Southeast Asia, which can be ascribed to Syngenta's obtaining a leadership position in these regions. Moreover, increased prices in both Crop Protection and Seeds business segments added to the improvement.

Undeterred by a prolonged winter, Syngenta proceeded on its growth trajectory in North America where sales soared by 6.0% to $1.3 billion; sales in Europe, Africa and the Middle East increased by 10.0% to $1.9 billion, led by new product launches and sales of those products that were delayed in the last quarter.

Sales in the Asia Pacific region grew due to good business in Thailand, Indonesia and Bangladesh. However, this was offset by a decline in Australian sales which suffered because of severe weather conditions, resulting in 1% year-over-year decline in sales to $525.0 million. Business in Latin America improved by 14.0% to $568.0 million largely due to the fungicides and insecticides sales.

Sales in Crop Protection went up 9.0% year-over-year to $3.1 billion with a 16.0% rise in the Latin American region. Seeds grew by 5.0% year-over-year to $1.3 billion with a 20.0% increase in the Asia Pacific region.

Syngenta received an approval for its rootworm control technology Agrisure Duracade in the reported quarter, and is expected to launch the same in 2014. Syngenta maintains a long-term sales growth target of 8.0%, which it expects to be hurt by higher seed production costs.

Syngenta currently carries a Zacks Rank #3 (Hold). Other agricultural chemicals companies worth a look are Monsanto Company ( MON ), The Andersons, Inc. ( ANDE ) and CVR Partners, LP ( UAN ); each carrying a Zacks Rank #2 (Buy).



ANDERSONS INC (ANDE): Free Stock Analysis Report

MONSANTO CO-NEW (MON): Free Stock Analysis Report

SYNGENTA AG-ADR (SYT): Free Stock Analysis Report

CVR PARTNERS LP (UAN): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Business , Stocks

Referenced Stocks: ANDE , MON , SYT , UAN

Zacks.com

Zacks.com

More from Zacks.com:

Related Videos

Stocks

Referenced

Most Active by Volume

152,099,280
  • $16.13 ▼ 1.59%
76,450,549
  • $59.72 ▲ 1.07%
57,375,391
  • $36.35 ▲ 6.26%
50,140,425
  • $26.93 ▲ 0.60%
49,201,544
  • $3.17 ▲ 2.59%
39,533,031
  • $86.18 ▲ 1.33%
36,760,050
  • $13.42 ▲ 2.84%
33,109,047
  • $26.12 ▲ 1.16%
As of 4/16/2014, 04:05 PM