“Syngenta, the world's biggest agrochemicals company, yesterday sharply raised its earnings forecast for the year after reporting first-quarter sales growth that was better than expected.
However, the Anglo-Swiss group also admitted it was abandoning development of one of its genetically modified crops because of delays in approval.
Syngenta and rival Monsanto have withdrawn "Event 77", a jointly developed herbicide-tolerant GM sugar beet planned for the European market, the companies confirmed.
The variety, which was the subject of the UK's field trials on GM crops, is now considered commercially out of date”

29 Apr 2004
Syngenta to reap sales growth rewards

Wednesday, April 28, 2004
By David Firn and John Mason in London and Haig Simonian in Zurich

Syngenta, the world's biggest agrochemicals company, yesterday sharply raised its earnings forecast for the year after reporting first-quarter sales growth that was better than expected.
However, the Anglo-Swiss group also admitted it was abandoning development of one of its genetically modified crops because of delays in approval.

Syngenta said it expected earnings per share to grow 30 per cent, before restructuring and impairment charges, in 2004, significantly ahead of its previous "high-teens" target.
Michael Pragnell, chief executive, said the increased optimism was prompted by a strong rebound in all sectors of the agrochemical market after five years of downturn in the industry, as well as synergies from the merger of AstraZeneca's agrochemical operations with those of Novartis three years ago.
Owen Dwyer, analyst at Merrill Lynch, said that agrochemicals were benefiting from higher crop prices, a benign subsidy environment and a rebound in Latin America, where sales rose 70 per cent year-on-year.
But he said he remained unconvinced about the top-line growth prospects for the sector beyond 2004.
Syngenta reported a 15 per cent rise in sales to $2.3bn, helped by the weak US dollar.
Crop protection sales were up 7 per cent in constant currency terms, boosted by a strong conclusion to the season in Latin America and a good start in Europe, Africa and the Middle East, as well as strong demand for insecticides. Seed sales were up 11 per cent.
Mr Pragnell said the outlook for Latin America was very good. "It is modern, well run and cost-competitive, but I'd caution that we've seen upsets in Brazil before."
The critical question was demand in Europe and the US as the growing season got under way in the northern hemisphere, he said.
Syngenta's decision to raise earnings came as US chemicals company DuPont reported a rise in first-quarter earnings yesterday, partly on the back of a rebound in agrochemicals demand.

Syngenta and rival Monsanto have withdrawn "Event 77", a jointly developed herbicide-tolerant GM sugar beet planned for the European market, the companies confirmed.
The variety, which was the subject of the UK's field trials on GM crops, is now considered commercially out of date.
© Copyright The Financial Times Ltd 2004

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