Syngenta reported that its third quarter group sales, including Lawn and Garden, were unchanged at constant exchange rates.
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Reported sales were affected by the depreciation of most currencies against the dollar and were 12 percent lower. Excluding glyphosate and the change in sales terms in Brazil already announced, sales were 8 percent lower at constant exchange rates.
For the first nine months of 2015, sales rose by 2 percent at constant exchange rates to $10.3 billion.
In Latin America sales were up 13 percent. In Brazil, the impact on the market of low commodity prices was exacerbated by the sharp depreciation of the Real in the quarter and by liquidity constraints.
In Argentina, credit is also tight and growers continue to be penalized by export taxes on soybeans. The increase in sales is therefore due to the change in sales terms in Brazil, which means that a larger proportion of crop protection sales are recorded in the third rather than the fourth quarter.
This positive effect was partly offset by the deliberate reduction in sales of glyphosate; net of both factors, regional sales were 8 percent lower.
In Asia Pacific sales were 9 percent lower with extended drought in the ASEAN countries and a weak monsoon in India. Although these seasonal factors affected volumes, price increases were sustained.
Sales in Europe, Africa and the Middle East were almost unchanged compared with a strong quarter in 2014 and despite dry conditions over the summer. Crop protection sales benefited from a successful Seedcare campaign.
In seeds, strong growth in cereals offset lower corn sales due to reduced acreage. After a strong first half performance, the region has maintained double digit growth for the first nine months of the year.
In North America, crop protection sales were down reflecting the deliberate reduction in glyphosate and the phasing of selective herbicide sales linked to the introduction of ACURON.
Low commodity prices affected fungicide applications for crop enhancement. A strong performance in corn seeds was partly offset by a competitive soybean market with lower than expected acreage. ■