Basel, Switzerland
October 14, 2010
• Sales up 11 percent at constant exchange rates
• Crop Protection: growth across all product lines, all regions
• Continuing strong performance in Latin America
• Upturn in Northern hemisphere markets
• Technology success in Seeds
• Full year guidance maintained
Sales in the third quarter of 2010 increased by 11 percent at constant exchange rates; reported sales were 10 percent higher at $2.2 billion. In the first nine months of the year, sales were up 1 percent at constant exchange rates at $8.9 billion.
In Crop Protection, third quarter sales volume increased by 18 percent, with strong growth across all product lines and all regions. Prices were 7 percent lower and 5 percent lower excluding glyphosate, an improved performance compared with the second quarter. In Europe, growth in most major markets was driven by Herbicides and by Seed Care. NAFTA saw sustained volume momentum across the portfolio, more than offsetting lower prices notably for glyphosate. Latin America continued to deliver an excellent performance, particularly in Argentina where sales were up by more than 40 percent. In Brazil, moisture levels improved towards the end of September resulting in a good start to planting. Growth in Asia-Pacific accelerated, driven by the emerging markets.
Growth in Selective Herbicides was led by CALLISTO® in North America and by sales on oilseed rape in Europe. Modest growth in Non-selective Herbicides was due largely to strong volume growth in TOUCHDOWN® in the Americas, more than offsetting price weakness. Fungicide growth was led by AMISTAR® in Latin America, where sales were up by more than 50 percent. Growth in Insecticides was driven by ACTARA® and DURIVO®. Seed Care sales improved with a strong performance by CRUISER® in Europe and Latin America. In Professional Products, turf and ornamentals showed a recovery in an improved economic environment.
Combined sales of new products reached $338 million in the first nine months of the year, an increase of 16 percent. The main drivers were DURIVO® and REVUS®, which are being launched in additional markets.
Seeds sales increased by 12 percent in the third quarter. Volume increased by 4 percent and prices were 8 percent higher. Sales of Corn & Soybean were up by more than 20 percent led by the USA, reflecting a positive market reaction to an enhanced portfolio. Sales of Diverse Field Crops increased slightly due to the consolidation of the recent sunflower acquisition. Vegetables showed double digit growth in all regions reflecting the breadth of the range and expansion into emerging markets.
Mike Mack, Chief Executive Officer, said:
“The third quarter performance confirms our expectation of continuing positive volume momentum in the second half of 2010. This, coupled with careful control of costs and increasing profitability in Seeds, should allow us to achieve full year operating income around last year’s level. As we look ahead to 2011, we are in a strong position to capture value from improving conditions in the crop protection market and from the significant advances in our Seeds technology.”
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