Welcome!

.NET Authors: Sandi Mappic, Yeshim Deniz, Carmen Gonzalez, Greg O'Connor, Pat Romanski

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
Samsung VP Jacopo Lenzi, who headed the company's recent SmartThings acquisition under the auspices of Samsung's Open Innovaction Center (OIC), answered a few questions we had about the deal. This interview was in conjunction with our interview with SmartThings CEO Alex Hawkinson. IoT Journal: SmartThings was developed in an open, standards-agnostic platform, and will now be part of Samsung's Open Innovation Center. Can you elaborate on your commitment to keep the platform open? Jacopo Lenzi: Samsung recognizes that true, accelerated innovation cannot be driven from one source, but requires a...
SYS-CON Events announced today that Red Hat, the world's leading provider of open source solutions, will exhibit at Internet of @ThingsExpo, which will take place on November 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. Red Hat is the world's leading provider of open source software solutions, using a community-powered approach to reliable and high-performing cloud, Linux, middleware, storage and virtualization technologies. Red Hat also offers award-winning support, training, and consulting services. As the connective hub in a global network of enterprises, partners, a...
P2P RTC will impact the landscape of communications, shifting from traditional telephony style communications models to OTT (Over-The-Top) cloud assisted & PaaS (Platform as a Service) communication services. The P2P shift will impact many areas of our lives, from mobile communication, human interactive web services, RTC and telephony infrastructure, user federation, security and privacy implications, business costs, and scalability. In his session at Internet of @ThingsExpo, Robin Raymond, Chief Architect at Hookflash Inc., will walk through the shifting landscape of traditional telephone a...
SYS-CON Events announced today that Matrix.org has been named “Silver Sponsor” of Internet of @ThingsExpo, which will take place on November 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. Matrix is an ambitious new open standard for open, distributed, real-time communication over IP. It defines a new approach for interoperable Instant Messaging and VoIP based on pragmatic HTTP APIs and WebRTC, and provides open source reference implementations to showcase and bootstrap the new standard. Our focus is on simplicity, security, and supporting the fullest feature set.
BSQUARE is a global leader of embedded software solutions. We enable smart connected systems at the device level and beyond that millions use every day and provide actionable data solutions for the growing Internet of Things (IoT) market. We empower our world-class customers with our products, services and solutions to achieve innovation and success. For more information, visit www.bsquare.com.
How do APIs and IoT relate? The answer is not as simple as merely adding an API on top of a dumb device, but rather about understanding the architectural patterns for implementing an IoT fabric. There are typically two or three trends: Exposing the device to a management framework Exposing that management framework to a business centric logic • Exposing that business layer and data to end users. This last trend is the IoT stack, which involves a new shift in the separation of what stuff happens, where data lives and where the interface lies. For instance, it’s a mix of architectural style...
SYS-CON Events announced today that SOA Software, an API management leader, will exhibit at SYS-CON's 15th International Cloud Expo®, which will take place on November 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. SOA Software is a leading provider of API Management and SOA Governance products that equip business to deliver APIs and SOA together to drive their company to meet its business strategy quickly and effectively. SOA Software’s technology helps businesses to accelerate their digital channels with APIs, drive partner adoption, monetize their assets, and achieve a...
From a software development perspective IoT is about programming "things," about connecting them with each other or integrating them with existing applications. In his session at @ThingsExpo, Yakov Fain, co-founder of Farata Systems and SuranceBay, will show you how small IoT-enabled devices from multiple manufacturers can be integrated into the workflow of an enterprise application. This is a practical demo of building a framework and components in HTML/Java/Mobile technologies to serve as a platform that can integrate new devices as they become available on the market.
SYS-CON Events announced today that Utimaco will exhibit at SYS-CON's 15th International Cloud Expo®, which will take place on November 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. Utimaco is a leading manufacturer of hardware based security solutions that provide the root of trust to keep cryptographic keys safe, secure critical digital infrastructures and protect high value data assets. Only Utimaco delivers a general-purpose hardware security module (HSM) as a customizable platform to easily integrate into existing software solutions, embed business logic and build s...
Connected devices are changing the way we go about our everyday life, from wearables to driverless cars, to smart grids and entire industries revolutionizing business opportunities through smart objects, capable of two-way communication. But what happens when objects are given an IP-address, and we rely on that connection, sometimes with our lives? How do we secure those vast data infrastructures and safe-keep the privacy of sensitive information? This session will outline how each and every connected device can uphold a core root of trust via a unique cryptographic signature – a “bir...
Internet of @ThingsExpo Silicon Valley announced on Thursday its first 12 all-star speakers and sessions for its upcoming event, which will take place November 4-6, 2014, at the Santa Clara Convention Center in California. @ThingsExpo, the first and largest IoT event in the world, debuted at the Javits Center in New York City in June 10-12, 2014 with over 6,000 delegates attending the conference. Among the first 12 announced world class speakers, IBM will present two highly popular IoT sessions, which will take place November 4-6, 2014 at the Santa Clara Convention Center in Santa Clara, Calif...
Almost everyone sees the potential of Internet of Things but how can businesses truly unlock that potential. The key will be in the ability to discover business insight in the midst of an ocean of Big Data generated from billions of embedded devices via Systems of Discover. Businesses will also need to ensure that they can sustain that insight by leveraging the cloud for global reach, scale and elasticity.
WebRTC defines no default signaling protocol, causing fragmentation between WebRTC silos. SIP and XMPP provide possibilities, but come with considerable complexity and are not designed for use in a web environment. In his session at Internet of @ThingsExpo, Matthew Hodgson, technical co-founder of the Matrix.org, will discuss how Matrix is a new non-profit Open Source Project that defines both a new HTTP-based standard for VoIP & IM signaling and provides reference implementations.

SUNNYVALE, Calif., Oct. 20, 2014 /PRNewswire/ -- Spansion Inc. (NYSE: CODE), a global leader in embedded systems, today added 96 new products to the Spansion® FM4 Family of flexible microcontrollers (MCUs). Based on the ARM® Cortex®-M4F core, the new MCUs boast a 200 MHz operating frequency and support a diverse set of on-chip peripherals for enhanced human machine interfaces (HMIs) and machine-to-machine (M2M) communications. The rich set of periphera...

SYS-CON Events announced today that Aria Systems, the recurring revenue expert, has been named "Bronze Sponsor" of SYS-CON's 15th International Cloud Expo®, which will take place on November 4-6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. Aria Systems helps leading businesses connect their customers with the products and services they love. Industry leaders like Pitney Bowes, Experian, AAA NCNU, VMware, HootSuite and many others choose Aria to power their recurring revenue business and deliver exceptional experiences to their customers.
The Internet of Things (IoT) is going to require a new way of thinking and of developing software for speed, security and innovation. This requires IT leaders to balance business as usual while anticipating for the next market and technology trends. Cloud provides the right IT asset portfolio to help today’s IT leaders manage the old and prepare for the new. Today the cloud conversation is evolving from private and public to hybrid. This session will provide use cases and insights to reinforce the value of the network in helping organizations to maximize their company’s cloud experience.
The Internet of Things (IoT) is making everything it touches smarter – smart devices, smart cars and smart cities. And lucky us, we’re just beginning to reap the benefits as we work toward a networked society. However, this technology-driven innovation is impacting more than just individuals. The IoT has an environmental impact as well, which brings us to the theme of this month’s #IoTuesday Twitter chat. The ability to remove inefficiencies through connected objects is driving change throughout every sector, including waste management. BigBelly Solar, located just outside of Boston, is trans...
SYS-CON Events announced today that Matrix.org has been named “Silver Sponsor” of Internet of @ThingsExpo, which will take place on November 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. Matrix is an ambitious new open standard for open, distributed, real-time communication over IP. It defines a new approach for interoperable Instant Messaging and VoIP based on pragmatic HTTP APIs and WebRTC, and provides open source reference implementations to showcase and bootstrap the new standard. Our focus is on simplicity, security, and supporting the fullest feature set.
Predicted by Gartner to add $1.9 trillion to the global economy by 2020, the Internet of Everything (IoE) is based on the idea that devices, systems and services will connect in simple, transparent ways, enabling seamless interactions among devices across brands and sectors. As this vision unfolds, it is clear that no single company can accomplish the level of interoperability required to support the horizontal aspects of the IoE. The AllSeen Alliance, announced in December 2013, was formed with the goal to advance IoE adoption and innovation in the connected home, healthcare, education, aut...
SYS-CON Events announced today that Red Hat, the world's leading provider of open source solutions, will exhibit at Internet of @ThingsExpo, which will take place on November 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. Red Hat is the world's leading provider of open source software solutions, using a community-powered approach to reliable and high-performing cloud, Linux, middleware, storage and virtualization technologies. Red Hat also offers award-winning support, training, and consulting services. As the connective hub in a global network of enterprises, partners, a...