Switzerland-based agricultural products company,
), reported improved year-over-year sales for first-quarter 2014.
Sales in the reported quarter increased 2% year over year to $4.7
This was led by a rise in revenues across all the regions,
especially Europe, Africa and the Middle East (EAME), which
witnessed a year-over-year sales hike of 8%. However, on a
constant exchange rate basis, revenues were 5% higher than the
declined 8.0% to $1.2 billion, due to extended cold weather
conditions in the United States. Moreover, drought in California
hampered the demand for insecticides and pesticides. The decline
was partially offset by high demand for Vibrance seed care in
Canada. Sales in
increased 8% to $2,095 million, led by an early start to the
plantation season. The region recorded a rise in crop protection
Sales in the
region grew 6% year over year to $558 million due to increased
demand in Australasia on the back of favorable weather. Sales in
emerging markets as well as developed markets improved. Business
improved 5% year over year to $595 million, largely due to
increased sales of insecticides.
On a reported basis, crop protection sales went up 4% year
over year to $3.2 billion as sales grew 13% in the EAME region.
Seeds sales declined 2% year over year to $1.3 billion as sales
in Latin America dropped 12%.
The strong start to the year reinforces the company's belief
on a strong year ahead. In 2014, Syngenta expects integrated
sales to increase 6% year over year on a constant exchange rate
Moreover, reduced seeds costs are likely to result in margin
improvements. Free cash flow before acquisitions is expected to
be roughly $1.5 billion while research and development
expenditure are likely to be around 9-10% of total sales.
Syngenta currently carries a Zacks Rank #3 (Hold). Some
better-ranked stocks in the industry include
The Andersons, Inc.
Gruma S.A.B. de CV
CVR Partners, LP
). All these stocks enjoy a Zacks Rank #2 (Buy).
ANDERSONS INC (ANDE): Free Stock Analysis
GRUMA SA-ADR B (GMK): Free Stock Analysis
SYNGENTA AG-ADR (SYT): Free Stock Analysis
CVR PARTNERS LP (UAN): Free Stock Analysis
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