October 17, 2014
Syngenta backtracks, says 2014 profit to be lower
Top crop chemicals maker Syngentasees its profit margin declining this year due to a shift from corn to soy in North America, as well as lower prices for its products that include weed and insect killer chemicals.
The Swiss company, which earns more from sales of corn seeds than soy seeds, had expected to improve its profit margin this year. On Thursday, however, it said it would be lower.
Syngenta Chief Executive Mike Mack said in a statement: "For the first nine months of this year profitability has been affected by adverse currency movements and sales mix. As a result we expect the full-year EBITDA [earnings before interest, taxes, depreciation and amortization] margin will be below last year's level."
Syngenta said the extent of the decline in margin would depend largely on the fourth-quarter growth in Latin America.
While it expects lower profit margin, Syngenta affirmed its earlier annual sales growth forecast of 6%, expecting sales to accelerate in the fourth quarter.
"This is mainly due to the relative robustness of the sector in which we operate. Importantly, farmers do need these products for the purpose of maximising yield," he was quoted by the news agency Reuters as saying.