Syngenta Q1 Sales Drop; Backs Full-year Outlook

(RTTNews) - Swiss crop chemicals major Syngenta AG (SYT) Friday said sales for the first quarter declined 14 percent from last year, hurt by adverse currency. Following this, the company backed its outlook for the full year.

Mike Mack, CEO, commented, "We are maintaining our full year targets of sales broadly unchanged at constant exchange rates and EBITDA, after the impact of currencies, around the 2014 level. We expect to generate substantial free cash flow."

Group sales for the three-month period declined to $4.017 billion from $4.682 billion last year. The decrease reflected the strength of the dollar against the euro and most other currencies, particularly in the CIS. At constant exchange rates, including the Lawn and Garden business, sales were unchanged.

Total integrated sales fell 14 percent to $3.845 billion, but rose 1 percent in constant currency. While volumes fell 7 percent, prices rose 8 percent amid increases in the CIS to offset the impact of currency depreciation. Excluding the CIS and glyphosate, prices were up 1 percent.

Sales climbed 15 percent in Europe, Africa and the Middle East with strong growth in crop protection offsetting weakness in seeds due to lower acreage for corn, sunflower and sugar beet in several territories. Regional and business-wise comparisons are at constant exchange rates.

In North America, sales declined 16 percent. A prolonged winter delayed the start of the season in the U.S. and Seedcare was sharply down in Canada owing to high channel inventories.

By business, Crop Protection sales rose 1 percent, while sales of Seeds were unchanged in constant currency.

Product-wise, for Selective herbicides, sales rose 6 percent to $946 million. Volume was slightly lower, with good growth in the CIS offset by phasing in France and a decline in North America due to the late season.

Fungicides' sales grew 12 percent to $982 million and saw volume increases in most European territories with growth across the portfolio.

Non-selective herbicides' sales fell 30 percent to $195 million, due to the planned reduction in TOUCHDOWN and the discontinuation of GRAMOXONE in China.

Lawn and Garden sales fell 5 percent with difficult market conditions persisting in the North American flowers business.

The stock closed at 343.20 Swiss francs on Thursday.