Syngenta Q3 Sales Down On Weak Latin America: Backs FY View Of Slight Sales Drop

(RTTNews) - Syngenta (SYT), an agriculture company, Tuesday reported that its third-quarter group sales were $2.5 billion, down 3 percent on a reported basis and at constant exchange rates. Excluding the impact from the change in sales terms in Brazil, sales were up 2 percent.

Regional sales of $2.4 billion were 4 percent lower at constant exchange rates. Volumes were 7 percent lower, while prices grew 3 percent, driven by increases in Brazil and in the CIS to offset prior year local currency depreciation.

Sales in Europe, Africa and the Middle East rose 8 percent, benefiting from robust fungicides sales and successful seedcare campaigns.

In North America, growth of 11 percent was driven by selective herbicides, reflecting the continuing success of Syngenta's weed management solutions.

Sales in Latin America were 21 percent lower. Excluding the change in sales terms, sales were 10 percent lower.

Asia Pacific recorded a 22 percent sales increase, helped by the ending of El Niño and a better monsoon in South Asia.

Looking ahead, Erik Fyrwald, Chief Executive Officer, said, "For the fourth quarter of 2016, we expect a continuation of the recovery in Asia Pacific and an improved performance in Latin America, with no further impact from the change in sales terms in Brazil."

Further, the company confirmed full year guidance of slightly lower sales at constant exchange rates, with a mid-single digit decline in reported sales. The EBITDA margin is expected to be around last year's level despite the non-recurrence of the $200 million trait revenue received in the fourth quarter of 2015.