Agricultural chemicals and seed specialist Syngenta AG has abandoned its 2009 targets after it recorded reported first-half profit below analysts’ estimates.
Earnings in 2009 are set to be close to last year’s record rather than boosting profit, as had been expected.
No substantial price increases will be possible in the remainder of the year, John Ramsay Syngenta ceo said.
Syngenta has changed its outlook twice this year as it cuts its credit to customers amid fears of loan payment issues.
Currency movements and bad weather in the second quarter also weighed on earnings. Price increases are expected to be at the bottom of a four to six per cent range for this year as a whole, Ramsay said.
First-half net income fell nine per cent to $1.39 billion (£845.6 million), missing an analyst consensus of $1.48bn. Sales fell nine percent to $6.66bn, as crop protection products, including brands such as Karate and Callisto, presented issues.
Fellow seed supplier Monsanto Co signalled last month its profit may drop next year because of faltering demand at its herbicide operation.
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