Makhteshim Agan’s Q1 2012 net income falls 2.7% on higher taxes

14 May 2012 05:27  [Source: ICIS news]

SINGAPORE (ICIS)--Makhteshim Agan’s net income in the first quarter of 2012 fell 2.7% year on year to $89.3m, as a result of higher tax expenses compared with the same period last year, the Israel-based agrochemicals firm said over the weekend.

However, first-quarter 2012 sales were reported at $828m (€638m), compared with $780.5m in the corresponding period of 2011, an increase of 6.1% year on year, partly because of an increase in volumes sold.

In addition, Makhteshim Agan said a rise in the price of oil and raw materials since 2011 triggered a slight increase in selling prices in the crop protection sector which the company was able to pass through to customers.

Operating profit for the first quarter of 2012 was $125.0m, up 12% compared with the same period of 2011. Makhteshim Agan’s operating profit accounted for 15.1% of sales.

“These results are yet another reflection of the transformation our business and operations have been undergoing since 2010,” said Erez Vigodman, president and CEO of Makhteshim Agan.

“Positive environment in global agriculture industry in general, and in the agro-chemical industry in particular, were also influential,” he added.

“We are investing significant resources in our future growth, primarily in the integration of Makhteshim Agan and the agro-chemical activities of ChemChina [China National Chemical Corp], as well as in other major strategic initiatives,” Vigodman said.

Yang Xingqiang, Makhteshim Agan’s chairman of the board, said the company was working to realise the potential of its merger with ChemChina, including investigating business opportunities in order to strengthen its presence in China and the Pacific Asian region.

($1 = €0.77)

By: Franco Capaldo
+44 (0)20 8652 3214

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