Click here to close now.

Welcome!

Microsoft Cloud Authors: Aleksei Gavrilenko, Elizabeth White, Liz McMillan, Pat Romanski, Jaynesh Shah

News Feed Item

Makhteshim Agan Announces Continued Positive Business Momentum, Improved Operating Profit & EBITDA In Q3 2012

Strong Business Performance in Europe, Asia Pacific and Africa Region

TEL-AVIV, Israel, Nov. 18, 2012 /PRNewswire/ -- The Makhteshim Agan Group ("MAI" or the "Company"), the world leader in branded off-patent crop protection solutions, today reported its financial results for the third quarter and first nine months ended September 30, 2012.

FINANCIAL HIGHLIGHTS

In millions of US$


Q3 2012

Q3 2011

Change


1-9/2012

1-9/2011

Change

Sales*


643.5

638.5

0.8%


2,255.0

2,142.1

5.3%

Gross profit


199.3

197.7

0.8%


740.9

691.7

7.1%

Gross margin


31.0%

31.0%

NA


32.9%

32.3%

NA

Operating profit


52.8

50.1

5.3%


278.6

249.3

11.7%

Profit before tax


23.0

15.3

50.5%


188.3

163.1

15.5%

Net income


13.1

10.1

30.1%


144.4

147.2

(1.9%)

EBITDA


89.6

83.3

7.6%


388.7

346.0

12.4%


* In constant currency terms sales grew by 4.2% and 7.2% in the quarter and the first nine months respectively.

Commenting on the results, Mr. Yang Xingqiang, Makhteshim Agan's Chairman of the Board, said, "We are pleased to report a strong quarter with double digit sales growth in the Asia Pacific & Africa region, as well as improvement in all our financial indicators for the first nine months, including EBITDA, operating profit and net income. We continue to implement the Company's strategic initiatives, including the integration of MAI with ChemChina's agrochemicals activities. In parallel, we are executing on our operational work plan that will allow us to strengthen our ability to create simplicity in agriculture for farmers around the globe."

Mr. Erez Vigodman, President and CEO of Makhteshim Agan, commented, "the continued improvement in our quarterly results proves MAI's ability to expand and grow while strengthening our operational discipline and our customer focus over time.

"I am pleased with our ability to significantly grow our operating profit, EBITDA and net income for both the quarter and first nine months of the year, despite the quarter's unfavorable FX environment and challenging weather in the U.S., Russia and Eastern Europe. We continued to introduce new differentiated off-patent solutions in many of our territories while compensating for higher raw material prices. Our strengths in market reach and product registration allowed us to cement our market positioning and will continue to play a pivotal role in our strategy going forward." 

FINANCIAL REVIEW

Sales: Revenues for the third quarter of 2012 totaled $643.5 million compared with $638.5 million in the third quarter of 2011. The increase derived from higher selling prices and increased quantities sold in Asia and Europe, which compensated for negative exchange rate fluctuations and higher raw material and active costs as compared to the third quarter of 2011.

For the nine-month period, sales totaled $2,255.0 million, a 5% increase of compared with $2,142.1 million for the first nine months of 2011.

On a geographical basis, the sales breakdown was as follows: 

Breakdown of Sales

(Millions of $US)

 

 

Q3 2012  

 

Q3 2011   

 

% Change

 

1-9/2012  

 

1-9/2012  

 

% Change

Europe

211.7

207.0

2.3%

955.8

911.8

4.8%

Latin America

188.1

192.1

(2.1%)

432.8

420.2

3.0%

North America

88.5

95.6

(7.5%)

389.9

373.6

4.4%

Asia Pacific & Africa

130.2

117.6

10.7%

399.0

358.3

11.4%

   Israel

25.0

26.1

(3.7%)

77.5

78.2

(1.0%)

The quarter's strongest sales growth was delivered by Asia Pacific & Africa, whose revenues increased by 11% to $130.2 million compared with $117.6 million in the third quarter of 2011. This reflected increased quantities sold and a rise in selling prices partially offset by the erosion of local currencies, primarily the Indian rupee.

Sales in Europe increased by 2% from $207 million to $212 million despite the erosion of European currency rates and poor weather across the continent. This reflected increased sales and higher selling prices in the region, together with the success of currency hedging transactions that provided partial compensation for the erosion of currency exchange rates. 

Sales in North America decreased by 7.5% from $96 million to $89 million, reflecting the decreased quantities sold in light of the drought experienced in the U.S. Sales in Latin America decreased by 2% from $192 million to $188 million, reflecting reduced quantities sold as compared with the third quarter of 2011, countered partially by higher selling prices, mainly in Brazil.

Gross Profit: Gross profit for the third quarter totaled $199 million (31.0% of sales), up 1% compared with $198 million (31.0% of sales) for the same period in 2011.

For the nine-month period, gross profit totaled $741 million (32.9% of sales), up 7% compared with $692 million (32.4% of sales) in the first nine months of 2011. The increased gross profit reflected the higher sales countered by a rise in raw material prices and the erosion of the value of the dollar, resulting in a slight reduction of the gross margin.

Operating Expenses: R&D, Selling and General and Administrative expenses for the quarter totaled $147 million (22.8% of sales), compared with $148 million (23.1% of sales) for the third quarter of 2011. For the nine-month period, operating expenses totaled $462 million (20.5% of sales), compared with $442 million (20.7% of sales) for the first nine months of 2011.

Operating Profit: Operating profit for the third quarter increased by 5.3% to $53 million (8.2% of sales), compared with $50 million (7.8% of sales) for the third quarter of 2011. For the nine-month period, operating profit increased by 12% to $279 million (12.4% of sales), compared with $249 million (11.6% of sales) for the first nine months of 2011.

Financing Expenses: Financing expenses totaled $28 million for the three months ended September 30, 2012 compared with $33 million for the third quarter of 2011. The decrease reflects the contribution of exchange rate differences and hedging transactions made by the Company, countered by an increase in interest expense associated with the issuance of additional Series B and D debentures in January 2012.

For the nine-month period, financing expenses totaled $83 million, compared with $81 million in the first nine months of 2011.

Income Before Tax: Income before tax for the third quarter of 2012 increased 51% to $23 million as compared with $15 million for the third quarter of 2011. The increase in income before tax stemmed from the quarter's improved profitability and higher sales.

For the nine month period, income before tax increased by 16% to $188 million compared with $163 million for the first nine months of 2011.

Net Income: Net income for the third quarter of 2012 totaled $13 million, or 2.0% of sales, compared with $10 million, or 3.x% of sales, for the third quarter of 2011.

For the nine-month period, net profit totaled $144 million, or 6.4% of sales, compared with $147 million, or 6.9% of sales, in the first nine months of 2011.

EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization): EBITDA for the third quarter of 2012 increased by 14% to $90 million (13.9% of sales), compared with $83 million (13.0% of sales) for the third quarter of 2011. For the nine-month period, EBITDA totaled $389 million (17.2% sales), compared with $346.0 million (16.2% of sales) in the first nine months of 2011.

Cash Flow: The Company recorded negative cash flow from operating activities of $86 million during the third quarter of 2012 compared with a negative cash flow of $36 million in the third quarter of 2011. For the first nine months, cash flow totaled $51 million compared with $253 million in the first nine months of 2011. The change in cash flow stemmed primarily from an increase in working capital, inter alia, for the purpose of supporting the organic growth of the Company.

Free cash flow (excluding short-term investments) for the third quarter of 2012 was negative at $144.6 million compared to a negative cash flow of $90 million for the corresponding period of 2011.  For the first nine months of 2012, negative free cash flow (excluding short-term investments) was $115 million compared to positive free cash flow of $58 million in the first nine months of 2011.

About Makhteshim Agan
Makhteshim Agan Industries Ltd. is a leading manufacturer and distributor worldwide of crop-protection solutions and the largest off-patent player in the industry. The Company supplies efficient solutions to farmers that assist them in combating disease and increasing yields. In 2011, the Company's revenues were over $2.69 billion, and it is ranked seventh in the world in the overall agro-chemicals industry. The Company is characterized by its know-how, high-level technological-chemical abilities, expertise in product registration, and observance of strict standards of environmental protection, stringent quality control and global marketing and distribution channels. For more information, visit us at www.ma-industries.com.

Contact:
Rony Patishi-Chillim
SVP of Global Corporate Communications
Email: [email protected]
Phone: +972 73 232 1941

SOURCE Makhteshim Agan Industries Ltd.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@ThingsExpo Stories
Internet of Things (IoT) will be a hybrid ecosystem of diverse devices and sensors collaborating with operational and enterprise systems to create the next big application. In their session at @ThingsExpo, Bramh Gupta, founder and CEO of robomq.io, and Fred Yatzeck, principal architect leading product development at robomq.io, discussed how choosing the right middleware and integration strategy from the get-go will enable IoT solution developers to adapt and grow with the industry, while at the same time reduce Time to Market (TTM) by using plug and play capabilities offered by a robust IoT ...
"We have a tagline - "Power in the API Economy." What that means is everything that is built in applications and connected applications is done through APIs," explained Roberto Medrano, Executive Vice President at Akana, in this SYS-CON.tv interview at 16th Cloud Expo, held June 9-11, 2015, at the Javits Center in New York City.
Explosive growth in connected devices. Enormous amounts of data for collection and analysis. Critical use of data for split-second decision making and actionable information. All three are factors in making the Internet of Things a reality. Yet, any one factor would have an IT organization pondering its infrastructure strategy. How should your organization enhance its IT framework to enable an Internet of Things implementation? In his session at @ThingsExpo, James Kirkland, Red Hat's Chief Architect for the Internet of Things and Intelligent Systems, described how to revolutionize your archit...
WebRTC converts the entire network into a ubiquitous communications cloud thereby connecting anytime, anywhere through any point. In his session at WebRTC Summit,, Mark Castleman, EIR at Bell Labs and Head of Future X Labs, will discuss how the transformational nature of communications is achieved through the democratizing force of WebRTC. WebRTC is doing for voice what HTML did for web content.
It is one thing to build single industrial IoT applications, but what will it take to build the Smart Cities and truly society-changing applications of the future? The technology won’t be the problem, it will be the number of parties that need to work together and be aligned in their motivation to succeed. In his session at @ThingsExpo, Jason Mondanaro, Director, Product Management at Metanga, discussed how you can plan to cooperate, partner, and form lasting all-star teams to change the world and it starts with business models and monetization strategies.
To many people, IoT is a buzzword whose value is not understood. Many people think IoT is all about wearables and home automation. In his session at @ThingsExpo, Mike Kavis, Vice President & Principal Cloud Architect at Cloud Technology Partners, discussed some incredible game-changing use cases and how they are transforming industries like agriculture, manufacturing, health care, and smart cities. He will discuss cool technologies like smart dust, robotics, smart labels, and much more. Prepare to be blown away with a glimpse of the future.
The Internet of Things is not only adding billions of sensors and billions of terabytes to the Internet. It is also forcing a fundamental change in the way we envision Information Technology. For the first time, more data is being created by devices at the edge of the Internet rather than from centralized systems. What does this mean for today's IT professional? In this Power Panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists addressed this very serious issue of profound change in the industry.
Internet of Things is moving from being a hype to a reality. Experts estimate that internet connected cars will grow to 152 million, while over 100 million internet connected wireless light bulbs and lamps will be operational by 2020. These and many other intriguing statistics highlight the importance of Internet powered devices and how market penetration is going to multiply many times over in the next few years.
Today air travel is a minefield of delays, hassles and customer disappointment. Airlines struggle to revitalize the experience. GE and M2Mi will demonstrate practical examples of how IoT solutions are helping airlines bring back personalization, reduce trip time and improve reliability. In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect with GE, and Dr. Sarah Cooper, M2Mi’s VP Business Development and Engineering, will explore the IoT cloud-based platform technologies driving this change including privacy controls, data transparency and integration of real time context wi...
SYS-CON Events announced today that BMC will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. BMC delivers software solutions that help IT transform digital enterprises for the ultimate competitive business advantage. BMC has worked with thousands of leading companies to create and deliver powerful IT management services. From mainframe to cloud to mobile, BMC pairs high-speed digital innovation with robust IT industrialization – allowing customers to provide amazing user experiences with optimized IT per...
There will be 150 billion connected devices by 2020. New digital businesses have already disrupted value chains across every industry. APIs are at the center of the digital business. You need to understand what assets you have that can be exposed digitally, what their digital value chain is, and how to create an effective business model around that value chain to compete in this economy. No enterprise can be complacent and not engage in the digital economy. Learn how to be the disruptor and not the disruptee.
The Internet of Things is not only adding billions of sensors and billions of terabytes to the Internet. It is also forcing a fundamental change in the way we envision Information Technology. For the first time, more data is being created by devices at the edge of the Internet rather than from centralized systems. What does this mean for today's IT professional? In this Power Panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists will addresses this very serious issue of profound change in the industry.
Business as usual for IT is evolving into a "Make or Buy" decision on a service-by-service conversation with input from the LOBs. How does your organization move forward with cloud? In his general session at 16th Cloud Expo, Paul Maravei, Regional Sales Manager, Hybrid Cloud and Managed Services at Cisco, discusses how Cisco and its partners offer a market-leading portfolio and ecosystem of cloud infrastructure and application services that allow you to uniquely and securely combine cloud business applications and services across multiple cloud delivery models.
In his General Session at 16th Cloud Expo, David Shacochis, host of The Hybrid IT Files podcast and Vice President at CenturyLink, investigated three key trends of the “gigabit economy" though the story of a Fortune 500 communications company in transformation. Narrating how multi-modal hybrid IT, service automation, and agile delivery all intersect, he will cover the role of storytelling and empathy in achieving strategic alignment between the enterprise and its information technology.
Buzzword alert: Microservices and IoT at a DevOps conference? What could possibly go wrong? In this Power Panel at DevOps Summit, moderated by Jason Bloomberg, the leading expert on architecting agility for the enterprise and president of Intellyx, panelists peeled away the buzz and discuss the important architectural principles behind implementing IoT solutions for the enterprise. As remote IoT devices and sensors become increasingly intelligent, they become part of our distributed cloud environment, and we must architect and code accordingly. At the very least, you'll have no problem fillin...
Growth hacking is common for startups to make unheard-of progress in building their business. Career Hacks can help Geek Girls and those who support them (yes, that's you too, Dad!) to excel in this typically male-dominated world. Get ready to learn the facts: Is there a bias against women in the tech / developer communities? Why are women 50% of the workforce, but hold only 24% of the STEM or IT positions? Some beginnings of what to do about it! In her Opening Keynote at 16th Cloud Expo, Sandy Carter, IBM General Manager Cloud Ecosystem and Developers, and a Social Business Evangelist, d...
Converging digital disruptions is creating a major sea change - Cisco calls this the Internet of Everything (IoE). IoE is the network connection of People, Process, Data and Things, fueled by Cloud, Mobile, Social, Analytics and Security, and it represents a $19Trillion value-at-stake over the next 10 years. In her keynote at @ThingsExpo, Manjula Talreja, VP of Cisco Consulting Services, discussed IoE and the enormous opportunities it provides to public and private firms alike. She will share what businesses must do to thrive in the IoE economy, citing examples from several industry sectors.
In his keynote at 16th Cloud Expo, Rodney Rogers, CEO of Virtustream, discussed the evolution of the company from inception to its recent acquisition by EMC – including personal insights, lessons learned (and some WTF moments) along the way. Learn how Virtustream’s unique approach of combining the economics and elasticity of the consumer cloud model with proper performance, application automation and security into a platform became a breakout success with enterprise customers and a natural fit for the EMC Federation.
SYS-CON Events announced today that the "Second Containers & Microservices Conference" will take place November 3-5, 2015, at the Santa Clara Convention Center, Santa Clara, CA, and the “Third Containers & Microservices Conference” will take place June 7-9, 2016, at Javits Center in New York City. Containers and microservices have become topics of intense interest throughout the cloud developer and enterprise IT communities.
SYS-CON Events announced today that the "First Containers & Microservices Conference" will take place June 9-11, 2015, at the Javits Center in New York City. The “Second Containers & Microservices Conference” will take place November 3-5, 2015, at Santa Clara Convention Center, Santa Clara, CA. Containers and microservices have become topics of intense interest throughout the cloud developer and enterprise IT communities.