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Basel, Switzerland
October 25, 2002
Sales for the third quarter ended September 30, 2002
were stable at $1.1 billion compared with the same period last
year; at constant exchange rates sales were down three percent.
The third
quarter, typically the least important of the year, was
particularly affected by adverse financial conditions in Latin
America. Sales for the
first nine months of 2002 were $5.0 billion compared with $5.1
billion for the same period in 2001; at constant exchange rates,
sales were
three percent lower with Crop Protection down three percent and
Seeds down one percent. The strengthening of European currencies
against the dollar has resulted in minimal impact on sales from
exchange rate movements for the year to date. Market conditions
are overall
little changed.
In Crop Protection, European sales sustained the strong
performance in Germany and in central and eastern Europe
reported at the first
half; this more than offset tough conditions in France. In NAFTA
the sales trend showed slight improvement on the first half with
the
herbicide market remaining competitive. Asia Pacific stabilized
in the third quarter due to good sales in China. Third quarter
sales in Latin
America suffered from acute currency depreciation in Brazil and
this resulted in significant price erosion. In addition,
Brazilian volumes
were substantially lower owing to the drive to control
receivables by reducing in-channel inventories. Cash sales in
Argentina increased.
Seeds sales increased by one percent in the third quarter with
growth in Europe and NAFTA offset by reduced sales in Latin
America.
Sales evolution for the full year 2002 is expected to be similar
to the first nine months. EBITDA (before special charges) will
benefit from
synergy cost reductions but is being constrained by the impact
of Brazilian currency upheaval on pricing; in addition, adverse
European
currency movements will have a negative impact on the reported
cost base. As a result the EBITDA margin is likely to improve by
less
than one percent. Earnings per share (before special charges)
will benefit from lower financial and tax charges and on a
comparable basis
growth is expected slightly to exceed that reported at the half
year.
Syngenta is a world-leading agribusiness. The company ranks
first in crop protection, and third in the high-value commercial
seeds
market. Sales in 2001 were approximately US $6.3 billion.
Syngenta employs more than 20,000 people in over 50 countries.
The
company is committed to sustainable agriculture through
innovative Research and Technology. Syngenta is listed on the
Swiss stock
exchange and in London, New York and Stockholm.
Unaudited Nine Months Product Line and Regional Sales
CHART 1
9 Months 9 Months
2002 2001 Actual(1) CER(1)
Syngenta $m $m % %
Crop Protection 4237 4352 -3% -3%
Seeds 764 774 -1% -1%
Total 5001 5126 -2% -3%
Crop Protection
Product line
Selective herbicides 1326 1454 -9% -8%
Non-selective herbicides 540 559 0% -1%
Fungicides 1103 1110 -1% -1%
Insecticides 678 726 -4% -4%
Professional products 459 404 8% 6%
Other 131 99 15% 10%
Total 4237 4352 -3% -3%
Regional
Europe, Africa and Middle East 1552 1512 3% 1%
NAFTA 1626 1682 -3% -3%
Latin America 419 482 -13% -13%
Asia Pacific 640 676 -5% -5%
Total 4237 4352 -3% -3%
Seeds
Product line
Field Crops 415 445 -7% -6%
Vegetables and Flowers 349 329 6% 5%
Total 764 774 -1% -1%
Regional
Europe, Africa and Middle East 387 360 7% 8%
NAFTA 295 304 -3% -3%
Latin America 46 70 -34% -34%
Asia Pacific 36 40 -9% -8%
Total 764 774 -1% -1%
Unaudited Third Quarter Product Line and Regional Sales
CHART 2
3rd 3rd
Quarter Quarter
2002 2001 Actual(1) CER(1)
Syngenta $m $m % %
Crop Protection 981 985 0% -4%
Seeds 118 110 7% 1%
Total 1099 1095 0% -3%
Crop Protection
Product line
Selective herbicides 201 230 -10% -13%
Non-selective herbicides 159 148 9% 6%
Fungicides 232 223 2% -1%
Insecticides 198 218 -6% -9%
Professional products 155 134 8% 3%
Other 36 32 1% -10%
Total 981 985 0% -4%
Regional
Europe, Africa and Middle East 334 301 11% 0%
NAFTA 248 249 -1% 0%
Latin America 209 247 -15% -15%
Asia Pacific 190 188 1% -2%
Total 981 985 0% -4%
Seeds
Product line
Field Crops 34 37 -10% -15%
Vegetables and Flowers 84 73 16% 9%
Total 118 110 7% 1%
Regional
Europe, Africa and Middle East 71 62 16% 6%
NAFTA 25 11 116% 116%
Latin America 13 27 -52% -52%
Asia Pacific 9 10 -11% -14%
Total 118 110 7% 1%
(1) CER = constant exchange rate. Product line variances are calculated
after adjusting for minor product line reclassifications.
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