Premium agricultural chemicals company, Syngenta AG SYT reported weak trading results for third-quarter 2016. The company’s performance has been largely affected by headwinds associated with unfavorable weather, weak commodity prices, currency volatilities and tight credit conditions.
Syngenta’s integrated sales for third-quarter 2016 totaled $ 2.4 billion, down 4% year over year. Group sales, including revenues from the Lawn and Garden segment, were $ 2.5 billion, down 3% year over year.
In third-quarter 2016, Syngenta’s sales from Europe, Africa and the Middle East (EAME) region was $ 529 million, up 4% year over. The year-over-year increase was attributable to a rise in fungicide sales and productive seedcare campaigns of the company.
The company’s North American sales increased 11% year over year to $ 431 million. The upside was driven by gains from the company’s innovative weed-management solutions.
Sales from the Asia Pacific were $ 425 million, up 22% year over year at CER from the value recorded in the year-ago period. Quarterly sales strengthened on the back of better South Asian weather and the ending of El Nino.
Latin American sales for the quarter came in at $ 999 million, down 19% year over year. Sales in the region had declined year over year due to lower Brazilian sales volume.
Sales generated from the company’s Lawn and Garden division totaled $ 140 million, up 4% year over year. Quarterly sales improved due to increased Vector Control solutions demand and robust volume growth for the company’s Pest Management.
Outlook
Syngenta projects that its revenues in fourth-quarter 2016 would be supported by stronger Asia Pacific as well as Latin American sales. For 2016, the company estimates to accrue free cash flow of over $ 1 billion.
The company also perceives that its deal with ChemChina would open up new opportunities in business. The procedure of procuring regulatory approvals is well underway at this moment.
SYNGENTA AG-ADR Price
SYNGENTA AG-ADR Price | SYNGENTA AG-ADR Quote
Share price of Syngenta was $ 81.40 per share as on Oct, 25 2016.
Zacks Rank and Other Stocks
Syngenta currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here .
Some better-ranked stocks within the industry that warrant a look include:
AK Steel Holding Corp. AKS currently carries a Zacks Rank #2 (Buy) and has an average earnings surprise of +200.42% over the four trailing quarters.
BASF SE BASFY currently carries a Zacks Rank #2 and has an average earnings surprise of +31.01% over the last four quarters.
Cabot Corp. CBT currently carries a Zacks Rank #2 and has an average earnings surprise of +2.07% over the trailing four quarters.
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SYNGENTA AG-ADR (SYT): Free Stock Analysis Report
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Plantations International