ChemChina-owned ADAMA Sees Lower Net Profit In Q1, Sales Above $1 Bln

(RTTNews) - Israeli crop protection products maker Adama Agricultural Solutions, or ADAMA Ltd., Monday said it expects first-quarter net income attributable to shareholders of $50 million to $58 million, compared to previous year's $320 million. Earnings per share would be $0.0205 to $0.0238, sharply lower than $0.1307 last year.

ADAMA, owned by Sanonda, a subsidiary of ChemChina, which also owns Syngenta AG (SYT), noted that the prior year's significantly higher net income was due to the recognition of an approximately $247 million one-time net income from the divestiture of several products in Europe in connection with the approval by the EU Commission of the acquisition of Syngenta by ChemChina last year, and other related impacts.

Adjusted net income is expected to be $76 million to $84 million, compared to prior year's $84 million. Adjusted earnings per share would be $0.0309 to $0.0341, compared to $0.0343 a year ago.

The Company is expecting to deliver another first quarter of more than $1 billion in sales, almost matching last year's best ever. On a constant currency basis, sales are expected to be above those of last year, driven by price increases.

Strong contribution of Latin America, India, Middle East and Africa, as well as China and new joiners Bonide and Anpon, offset weather- and supply-related delays in North America, Europe and Asia-Pacific.

In addition, the Company delivered marked price increases across all regions.