UPDATE 3-Syngenta upbeat FY outlook boosts shares

Wed Apr 15, 2009 4:44am EDT
 
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* Confirms forecast for growth in EPS in 2009

* CFO says dollar hit on 2009 net profit limited

* Q1 sales dip 4 pct to $3.6 bln on strong dollar

* Analysts had predicted $3.8 bln

* Shares up over 7 pct

(Adds details, analyst comment, shares)

By Andrew Thompson

ZURICH, April 15 (Reuters) - Syngenta AG (SYNN.VX), the world's largest agrochemicals company, on Wednesday reported a 4 percent fall in first-quarter sales but stayed upbeat about the full year, sending its shares over 7 percent higher.

Syngenta, which makes products to kill weeds and bugs as well as genetically modified seeds, said sales totalled $3.6 billion, a 7 percent increase when stripping out currency effects.

Credit Suisse analysts said crop protection sales were better than expected and seed sales slightly worse.

"A strong set of numbers should go a long way to reassure investors that the agriculture story is not over. Currency effects dampened some of the shine, but this should not impact profits," they wrote in a note to clients.

Syngenta benefited last year from rising crop prices and record food costs that spurred farmers to expand planting, but the global economic crisis had dampened demand and prices.

However, the company confirmed a forecast set in February for earnings per share growth in 2009.

"For the full year, despite adverse currency effects and ongoing tight risk management, the company continues to target growth in earnings per share" in 2009, it said.

Analysts polled by Reuters on average predicted sales would be flat at $3.8 billion in the first quarter.

Syngenta shares were up 7.13 percent at 237.30 Swiss francs at 0840 GMT, outperforming a flat DJ Stoxx European chemicals index .SX4P.  Continued...

 

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