Syngenta is lowering its annual target
Syngenta has lowered its targets on Thursday and now anticipates a decline in earnings this year due to a late start planting, the result of a severe winter, and the burden of taxation.
Around 8:15 GMT, the action accused the coup losing 5.21% to 229.40 Swiss francs, while the index grouping the European chemical values yielded 0.76%.
The planting season started late in the northern hemisphere, but demand has accelerated in the second quarter, especially in emerging markets, told Reuters CEO Mike Mack.
As a result, the Swiss agribusiness group, world leader in its field, now anticipates a strong second half, with good signs for the upcoming planting season in the Southern Hemisphere he added.
"We anticipate an operating profit of about that of last year but, instead, a decrease in net profit," he said.
A continuing evolution in Latin America and Asia should make it possible to Syngenta, which also produces genetically modified seeds, to offset a 13% drop in operating profit in the first half to finish the year with operating profit unchanged said Mike Mack.
Finance costs and tax rates should weigh heavier on the net profits, also said the CEO.
Net income declined 11% to 1.25 billion dollars in the first half, while the Reuters poll gave it to 1.38 billion.
Revenues increased 1% to 6.74 billion dollars, is there a little higher than the consensus (6.69 billion).
THE EMERGING TO THE DEVELOPED
Emerging markets such as Latin America and Asia-Pacific are increasingly important for the group."That was the year Syngenta could see its sales in emerging markets than those in developed markets," added Mike Mack.
Shares of agribusiness groups have declined this year due to stiff competition from cheaper Asian products and uncertainty about the regulations of GMOs (genetically modified organisms).
The slide has picked up speed after that Monsanto has sharply reduced its full-year in May and reported a 45% drop in quarterly net income in June.
German Bayer, which has a subsidiary agrochemicals, will release its second quarter results on July 28 and his compatriot BASF, also present on this segment, July 29.
The European Commission released this month a proposal under which the Member States of the European Union could soon have the ability to prohibit the cultivation of GM crops on their land without justification.
The action Syngenta trades at a PER 2011 around 12.5, below that of the U.S. Monsanto but over other European companies in the sector.
She lost about a fifth of its value since the peak reached in March this year.