Welcome!

.NET Authors: Lori MacVittie, Yeshim Deniz, Ivan Antsipau, Liz McMillan, Michael Bushong

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
Software AG helps organizations transform into Digital Enterprises, so they can differentiate from competitors and better engage customers, partners and employees. Using the Software AG Suite, companies can close the gap between business and IT to create digital systems of differentiation that drive front-line agility. We offer four on-ramps to the Digital Enterprise: alignment through collaborative process analysis; transformation through portfolio management; agility through process automation and integration; and visibility through intelligent business operations and big data.
There will be 50 billion Internet connected devices by 2020. Today, every manufacturer has a propriety protocol and an app. How do we securely integrate these "things" into our lives and businesses in a way that we can easily control and manage? Even better, how do we integrate these "things" so that they control and manage each other so our lives become more convenient or our businesses become more profitable and/or safe? We have heard that the best interface is no interface. In his session at Internet of @ThingsExpo, Chris Matthieu, Co-Founder & CTO at Octoblu, Inc., will discuss how these devices generate enough data to learn our behaviors and simplify/improve our lives. What if we could connect everything to everything? I'm not only talking about connecting things to things but also systems, cloud services, and people. Add in a little machine learning and artificial intelligence and now we have something interesting...
Last week, while in San Francisco, I used the Uber app and service four times. All four experiences were great, although one of the drivers stopped for 30 seconds and then left as I was walking up to the car. He must have realized I was a blogger. None the less, the next car was just a minute away and I suffered no pain. In this article, my colleague, Ved Sen, Global Head, Advisory Services Social, Mobile and Sensors at Cognizant shares his experiences and insights.
We are reaching the end of the beginning with WebRTC and real systems using this technology have begun to appear. One challenge that faces every WebRTC deployment (in some form or another) is identity management. For example, if you have an existing service – possibly built on a variety of different PaaS/SaaS offerings – and you want to add real-time communications you are faced with a challenge relating to user management, authentication, authorization, and validation. Service providers will want to use their existing identities, but these will have credentials already that are (hopefully) irreversibly encoded. In his session at Internet of @ThingsExpo, Peter Dunkley, Technical Director at Acision, will look at how this identity problem can be solved and discuss ways to use existing web identities for real-time communication.
From telemedicine to smart cars, digital homes and industrial monitoring, the explosive growth of IoT has created exciting new business opportunities for real time calls and messaging. In his session at Internet of @ThingsExpo, Ivelin Ivanov, CEO and Co-Founder of Telestax, will share some of the new revenue sources that IoT created for Restcomm – the open source telephony platform from Telestax. Ivelin Ivanov is a technology entrepreneur who founded Mobicents, an Open Source VoIP Platform, to help create, deploy, and manage applications integrating voice, video and data. He is the co-founder of TeleStax, an Open Source Cloud Communications company that helps the shift from legacy IN/SS7 telco networks to IP-based cloud comms. An early investor in multiple start-ups, he still finds time to code for his companies and contribute to open source projects.
Can call centers hang up the phones for good? Intuitive Solutions did. WebRTC enabled this contact center provider to eliminate antiquated telephony and desktop phone infrastructure with a pure web-based solution, allowing them to expand beyond brick-and-mortar confines to a home-based agent model. It also ensured scalability and better service for customers, including MUY! Companies, one of the country's largest franchise restaurant companies with 232 Pizza Hut locations. This is one example of WebRTC adoption today, but the potential is limitless when powered by IoT. Attendees will learn real-world benefits of WebRTC and explore future possibilities, as WebRTC and IoT intersect to improve customer service.
The Internet of Things (IoT) promises to create new business models as significant as those that were inspired by the Internet and the smartphone 20 and 10 years ago. What business, social and practical implications will this phenomenon bring? That's the subject of "Monetizing the Internet of Things: Perspectives from the Front Lines," an e-book released today and available free of charge from Aria Systems, the leading innovator in recurring revenue management.
The Internet of Things will put IT to its ultimate test by creating infinite new opportunities to digitize products and services, generate and analyze new data to improve customer satisfaction, and discover new ways to gain a competitive advantage across nearly every industry. In order to help corporate business units to capitalize on the rapidly evolving IoT opportunities, IT must stand up to a new set of challenges.
There’s Big Data, then there’s really Big Data from the Internet of Things. IoT is evolving to include many data possibilities like new types of event, log and network data. The volumes are enormous, generating tens of billions of logs per day, which raise data challenges. Early IoT deployments are relying heavily on both the cloud and managed service providers to navigate these challenges. In her session at 6th Big Data Expo®, Hannah Smalltree, Director at Treasure Data, to discuss how IoT, Big Data and deployments are processing massive data volumes from wearables, utilities and other machines.
All major researchers estimate there will be tens of billions devices – computers, smartphones, tablets, and sensors – connected to the Internet by 2020. This number will continue to grow at a rapid pace for the next several decades. With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo in Silicon Valley. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be!
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, Erik Lagerway, Co-founder of Hookflash, will walk through the shifting landscape of traditional telephone and voice services to the modern P2P RTC era of OTT cloud assisted services.
While great strides have been made relative to the video aspects of remote collaboration, audio technology has basically stagnated. Typically all audio is mixed to a single monaural stream and emanates from a single point, such as a speakerphone or a speaker associated with a video monitor. This leads to confusion and lack of understanding among participants especially regarding who is actually speaking. Spatial teleconferencing introduces the concept of acoustic spatial separation between conference participants in three dimensional space. This has been shown to significantly improve comprehension and conference efficiency.
The Internet of Things is tied together with a thin strand that is known as time. Coincidentally, at the core of nearly all data analytics is a timestamp. When working with time series data there are a few core principles that everyone should consider, especially across datasets where time is the common boundary. In his session at Internet of @ThingsExpo, Jim Scott, Director of Enterprise Strategy & Architecture at MapR Technologies, will discuss single-value, geo-spatial, and log time series data. By focusing on enterprise applications and the data center, he will use OpenTSDB as an example to explain some of these concepts including when to use different storage models.
SYS-CON Events announced today that Gridstore™, the leader in software-defined storage (SDS) purpose-built for Windows Servers and Hyper-V, 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. Gridstore™ is the leader in software-defined storage purpose built for virtualization that is designed to accelerate applications in virtualized environments. Using its patented Server-Side Virtual Controller™ Technology (SVCT) to eliminate the I/O blender effect and accelerate applications Gridstore delivers vmOptimized™ Storage that self-optimizes to each application or VM across both virtual and physical environments. Leveraging a grid architecture, Gridstore delivers the first end-to-end storage QoS to ensure the most important App or VM performance is never compromised. The storage grid, that uses Gridstore’s performance optimized nodes or capacity optimized nodes, starts with as few a...
The Transparent Cloud-computing Consortium (abbreviation: T-Cloud Consortium) will conduct research activities into changes in the computing model as a result of collaboration between "device" and "cloud" and the creation of new value and markets through organic data processing High speed and high quality networks, and dramatic improvements in computer processing capabilities, have greatly changed the nature of applications and made the storing and processing of data on the network commonplace. These technological reforms have not only changed computers and smartphones, but are also changing the data processing model for all information devices. In particular, in the area known as M2M (Machine-To-Machine), there are great expectations that information with a new type of value can be produced using a variety of devices and sensors saving/sharing data via the network and through large-scale cloud-type data processing. This consortium believes that attaching a huge number of devic...
Innodisk is a service-driven provider of industrial embedded flash and DRAM storage products and technologies, with a focus on the enterprise, industrial, aerospace, and defense industries. Innodisk is dedicated to serving their customers and business partners. Quality is vitally important when it comes to industrial embedded flash and DRAM storage products. That’s why Innodisk manufactures all of their products in their own purpose-built memory production facility. In fact, they designed and built their production center to maximize manufacturing efficiency and guarantee the highest quality of our products.
All major researchers estimate there will be tens of billions devices - computers, smartphones, tablets, and sensors - connected to the Internet by 2020. This number will continue to grow at a rapid pace for the next several decades. Over the summer Gartner released its much anticipated annual Hype Cycle report and the big news is that Internet of Things has now replaced Big Data as the most hyped technology. Indeed, we're hearing more and more about this fascinating new technological paradigm. Every other IT news item seems to be about IoT and its implications on the future of digital business.
Can call centers hang up the phones for good? Intuitive Solutions did. WebRTC enabled this contact center provider to eliminate antiquated telephony and desktop phone infrastructure with a pure web-based solution, allowing them to expand beyond brick-and-mortar confines to a home-based agent model. Download Slide Deck: ▸ Here
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.
With the iCloud scandal seemingly in its past, Apple announced new iPhones, updates to iPad and MacBook as well as news on OSX Yosemite. Although consumers will have to wait to get their hands on some of that new stuff, what they can get is the latest release of iOS 8 that Apple made available for most in-market iPhones and iPads. Originally announced at WWDC (Apple’s annual developers conference) in June, iOS 8 seems to spearhead Apple’s newfound focus upon greater integration of their products into everyday tasks, cross-platform mobility and self-monitoring. Before you update your device, here is a look at some of the new features and things you may want to consider from a mobile security perspective.