Bayer CropScience: Herbicides, Seeds Help Offset Weak Latin American Results
30 July 2015 Bayer CropScience said sales of the agriculture business were essentially flat with the prior-year quarter at $2.7 billion, as stronger herbicide sales were offset by weak demand for insecticides and a tough Latin American market.
“CropScience held its own in what remained a difficult market environment, particularly in Latin America,” said CEO Dr. Marijn Dekkers. The business achieved its highest sales growth in the Asia/Pacific region, at 4.9% adjusted for foreign exchange rates. The business grew by 2.0% in North America and 0.9 percent% in Europe adjusted for foreign exchange rates. Sales in the Latin America/Africa/Middle East region declined 8.8% on that same basis.
In Crop Protection, business in the Herbicides unit grew by 5.6% (Fx & portfolio adj.). The 11.0% (Fx & portfolio adj.) increase in sales of the Seeds unit was due to positive development for vegetables and rice in particular. By contrast, sales at Insecticides showed a considerable decline of 17.7% (Fx & portfolio adj.). The SeedGrowth (seed treatments) and Fungicides units also saw their sales decline by 5.1% and 2.4% (Fx & portfolio adj.), respectively. On the other hand, sales at Environmental Science advanced by 6.6% (Fx & portfolio adj.), mainly as a result of robust growth in products for professional users.
EBITDA before special items of CropScience came in 19.2% above the prior-year period at $800 million (Q2 2014: $672 million). This increase was driven by a positive currency effect of about $76 million.
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