Syngenta planting the seed for a double
The company is seeing rising demand for seeds and pesticides, which could help it grab market share from rivals.
By Jim J. Jubak on Wed, Jun 22, 2011 4:26 PM
The hits just keep on coming in the agricultural sector.
Just days after fertilizer maker Agrium (AGU) raised its guidance for the first half of 2011, on better than expected prices and demand, Syngenta (SYT) said yesterday that rising demand for seeds and pesticides would help it double revenue from its main seed and crop-protection products to $17 billion in 2015, from $8.4 billion in 2010.
Syngenta’s projected 102% growth in that period would exceed the forecast for the sector as a whole. Research company MarketsandMarkets forecasts that the global agricultural-chemical market will grow to $223 billion in 2015, from $134 billion in 2010.
That’s a rather heady 66% growth rate, but it lags Syngenta’s figures because the company is forecasting that it will pick up market share from competitors in the sector over that period.
I’d call Syngenta’s forecast a stretch goal, but not as outlandish as it sounds. The company grew agrochemical sales by 11% and seed sales by 20% in the first quarter of 2011, for a total sales growth rate of 14%.
Full story: http://money.msn.com/investment-advice/article.aspx?post=95480437-1e8c-44d2-b791-d5c7bd24500e
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