BASEL (dpa-AFX) - Swiss crop chemicals firm Syngenta AG (SYT) Wednesday said first-half profit fell marginally from the prior year, hurt by lower sales volume in North America and emerging market currency weakness.
Net income attributable to shareholders slipped to $1.39 billion from $1.41 billion reported last year. Earnings per share slid to $15.11 from $15.23.
Excluding restructuring and impairment, earnings per share dropped to $15.60 from last year's $15.92.
EBITDA was 3 percent lower in reported terms but rose 6 percent at constant exchange rates.
Sales grew 1 percent to $8.51 billion from last year's $8.39 billion, and was up 4 percent at constant exchange rates, amid higher prices.
Mike Mack, CEO, said, 'The pace of sales growth in the first half was held back by adverse weather conditions in North America which, combined with a reduction in corn acreage, significantly impacted the crop protection market.'
Growth in all other regions was robust, exceeding the company's full-year target rate of six percent at constant exchange rates. Emerging market sales increased 11 percent and pricing remained firm across the business.
Volumes were unchanged owing to the adverse weather in North America, while all other regions showed volume increases.
In the Crop Protection business, sales grew 3 percent to $6.211 billion. Within the business, Selective herbicides sales slightly fell, but Non-selective herbicides, Fungicides and Insecticides reported moderate growth.
Total seeds sales fell 4 percent to $1.966 billion, while the fall was 1 percent at constant exchange rates owing to the divestment of the Dulcinea Farms fresh produce business in December 2013.
In the second half of the year, the company expects an acceleration of sales growth driven by Latin America, where strong momentum is seen for the launch of ELATUS.
On this basis, the firm continues to expect full-year integrated sales growth of around 6 percent at constant exchange rates. Profitability in the second half of the year is expected to benefit from the non-recurrence of the seeds inventory write-down incurred in the second half of 2013.
The stock was up 2 percent in early morning trade in Zurich at 335.10 Swiss francs.
Copyright RTT News/dpa-AFX