Makhteshim Agan Posts Smaller Loss as Sales Climb

Erez Vigodman, Makhteshim Agan

Off-patent crop protection leader Makhteshim Agan (MAI) recorded a narrower net loss for the fourth quarter, as rising sales in Asia Pacific and Latin America helped offset high raw material prices, currency fluctuations and severe weather in key markets.

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The Israel-based company, in which ChemChina acquired a controlling stake in 2011, posted a net loss of $21.9 million, compared with a $26.7 million net loss a year earlier. Operating profit for the period was $3 million, reversing an operating loss of $6.2 million a year ago. Operating expenses were $155.7 million in the quarter, compared with $156.1 million a year ago.

Net profit for the year totaled $122.6 million, up from $120.7 million in 2011.

“We made steady progress in advancing our goal of creating an operational and commercial infrastructure in China that will enable us to ramp up our presence in the Asia Pacific region, to tap the growth potential in the growing Chinese market and support our global activities,” MAI President and CEO Erez Vigodman said.

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Fourth-quarter sales rose 5.5% to $579.5 million, driven by volume and higher selling prices, partially offset by currency effects. Full-year sales rose 5.3% to $2.8 billion.

Every region posted sales gains, but the Asia Pacific region – particularly Australia, India and Thailand – was the company’s strongest performer, climbing 10% in 2012.

Latin America sales increased 5.5% for the year to $642.9 million. It benefited from several key product registrations in Brazil, on top of higher prices and sales volume.

European sales climbed 4.1% to $1.1 billion for the year, while North American sales rose 4% to $497.5 million.

“We are pleased with the business progress made so far. I am confident that the continued focus on enhancing MAI’s operational and commercial capabilities will favorably position the company to maintain its leading position in the crop protection market and lead to continued growth and profitability,” said MAI Chairman Yang Xingqiang.

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