Leading agribusiness group Syngenta has announced a mixed set of results for the first half of 2010, with sales increasing by 1 per cent to US$6.7bn (€5.2bn), but falling 3 per cent at constant exchange rates.
Net income for the six-month period dropped by 11 per cent on the same period in 2009, down to US$1.2bn (€929m) from US$1.4bn (€1.1bn).
The group's net result was impacted by cold weather in the Northern Hemisphere that delayed farming, as well as high inventories from last year that drove down prices.
'After a slow first quarter start, demand for our products has increased significantly in 2010 following a 2009 season characterised by low pest pressure and credit constraint,' said CEO Mike Mack. 'This is evidenced by solid growth in the second quarter, leading to a reduction in the high level of channel inventories which resulted in a competitive pricing environment in developed markets, notably North America.
'In the emerging markets we saw a strong performance throughout the first half, particularly in Latin America, as growers continued to invest in new technology,' he added. 'Our longstanding focus on operational efficiency is enabling us to confront a challenging short term environment while continuing to expand our platforms for future growth.'
Mr Mack pointed to what he described as 'many successes' for Syngenta over the first six months of the year, with sales of crop protection products up 14 per cent and improved profitability in Syngenta's seed business.
These positive trends will continue in the second half of 2010, he noted, with careful cost controls and increasing seed profitability allowing Syngenta to achieve full-year profitability in line with the previous year.
'Looking ahead, our focus will be on achieving further market share gains in developed markets while building on our track record of operational efficiency,' said Mr Mack. 'This will enable us to continue investing in emerging markets, which represent the main growth driver for our business and where we have established leadership positions.
'We remain firmly committed to our investments in R&D, which will accelerate new product launches and build on our ability to deliver integrated solutions to growers worldwide.'
