UPDATE 3-Syngenta raises outlook on booming farm market

(Adds shares, analyst)

By Douwe Miedema

ZURICH, April 3 (Reuters) - Swiss agrochemicals group Syngenta (SYNN.VX) raised its earnings outlook on Thursday, cashing in on roaring demand for farm goods and saying first-quarter sales had leapt 20 percent.

The surprise release of the numbers boosted the stock by 6 percent, outperforming weaker Swiss blue chips .SSMI.

"Growth was spread across all regions, with particularly strong demand for crop protection products, augmented by a robust performance in seeds," Syngenta said.

The strong growth rate in the first quarter was unlikely to be sustained throughout the year, the company said, but it was still confident EPS growth would exceed 20 percent.

Syngenta, which makes products to kill weeds and bugs and is one of the world's biggest producers of genetically modified seeds, is benefiting from booming global demand for food and biofuels, which has boosted food prices.

Rising crop prices are spurring farmers to expand planting as some governments impose emergency measures to make sure they have enough staples such as rice and flour to meet demand.

Syngenta rose 5.6 percent to 298.75 francs by 0828 GMT, having touched 300 francs, giving it a 4 percent gain so far this year, outperforming an 8 percent drop in the DJ Stoxx chemicals index .SX4P.

"Syngenta convinces with a good start in the year 2008, a positive long-term outlook and a strong positioning in the global agro-market, with sustainably strong demand dynamics," Zuercher Kantonalbank said in a note.

Syngenta, which has a market value of more than $28 billion, also said it expected sales growth of at least 10 percent at constant currencies this year.

The outlook for EPS was higher than Syngenta's initial outlook for double-digit percentage EPS growth through 2010 and was on a fully diluted basis, excluding 2007 non-recurring income, restructuring and impairment and share buybacks.

No further details were available. Syngenta will post a full first-quarter trading statement on April 22. (Reporting by Douwe Miedema; Editing by Louise Ireland)