BASEL, Switzerland, June 26, 2012 /PRNewswire/ -- As announced in February, Syngenta will adopt new segment reporting of sales and profitability starting with the first half 2012 results, to be announced on July 26. The new segments reflect the company's integrated strategy and align reporting with previously announced changes in management structure. As such, segment reporting is based on the four geographic regions, with the exception of the global Lawn and Garden business which is reported separately.
This press release provides restated figures for the first half of 2011 and the full years 2011 and 2010. In addition, 2011 quarterly sales performance is reported in line with the new segment structure. Group earnings are unaffected by the restatement.
Reclassification of certain expenses
- The boundary between Marketing and distribution / Research and development expenses has been redefined. Syngenta's global Research and development organization now manages all field trial sites and activities worldwide, including those related to maintaining product registrations.
- In order to maximize cost efficiency, the provision of support services in Finance, Information Systems, Human Resources and Indirect Procurement has been centralized through Syngenta Business Services. The allocation of these costs by expense line has changed to reflect the usage of the services. The allocation of costs for these services at a regional level is based on the level of transactional activity in revenues and costs, with revenue-related charges included in Marketing and distribution.
- Some costs of the integrated organization do not relate to a geographic destination and are reported as non-regional. These include global marketing teams, Research and development and corporate headquarter functions. In addition, regional gross profit performance is based on budgeted product costs: variances to the budget are reported as non-regional in order to align the reported results with organizational accountability.
These reclassifications have no impact on consolidated operating income or on consolidated income before taxes.
New Segmental Results
| For the six months (US$ million) |
EAME(1) |
North America |
Latin America |
Asia Pacific |
Non-regional |
Total |
Lawn and Garden(2) |
Total group |
| Segment sales |
2,924 |
2,251 |
1,032 |
1,026 |
- |
7,233 |
469 |
7,702 |
| Cost of goods sold |
(1,309) |
(1,145) |
(557) |
(537) |
(19) |
(3,567) |
(242) |
(3,809) |
| Gross profit |
1,615 |
1,106 |
475 |
489 |
(19) |
3,666 |
227 |
3,893 |
| Marketing and distribution |
(349) |
(287) |
(229) |
(147) |
(45) |
(1,057) |
(115) |
(1,172) |
| Research and development |
- |
- |
- |
- |
(564) |
(564) |
(28) |
(592) |
| General and administrative |
(78) |
(49) |
(45) |
(25) |
(50) |
(247) |
(33) |
(280) |
| Restructuring and impairment |
(10) |
(11) |
(5) |
(3) |
34 |
5 |
(24) |
(19) |
| Operating income/(loss) |
1,178 |
759 |
196 |
314 |
(644) |
1,803 |
27 |
1,830 |
| For the year ended December 31, 2011 (US$ million) |
EAME(1) |
North America |
Latin America |
Asia Pacific |
Non-regional |
Total |
Lawn and Garden(2) |
Total group |
| Segment sales |
3,982 |
3,273 |
3,305 |
1,887 |
- |
12,447 |
821 |
13,268 |
| Cost of goods sold |
(1,806) |
(1,648) |
(1,813) |
(984) |
(131) |
(6,382) |
(404) |
(6,786) |
| Gross profit |
2,176 |
1,625 |
1,492 |
903 |
(131) |
6,065 |
417 |
6,482 |
| Marketing and distribution |
(685) |
(554) |
(542) |
(290) |
(89) |
(2,160) |
(227) |
(2,387) |
| Research and development |
- |
- |
- |
- |
(1,135) |
(1,135) |
(56) |
(1,191) |
| General and administrative |
(166) |
(114) |
(77) |
(48) |
(155) |
(560) |
(62) |
(622) |
| Restructuring and impairment |
(88) |
(25) |
(23) |
(13) |
(29) |
(178) |
(53) |
(231) |
| Operating income/(loss) |
1,237 |
932 |
850 |
552 |
(1,539) |
2,032 |
19 |
2,051 |
| For the year ended December 31, 2010 (US$ million) |
EAME(1) |
North America |
Latin America |
Asia Pacific |
Non-regional |
Total |
Lawn and Garden(2) |
Total group |
| Segment sales |
3,423 |
2,969 |
2,763 |
1,707 |
- |
10,862 |
779 |
11,641 |
| Cost of goods sold |
(1,568) |
(1,571) |
(1,578) |
(909) |
116 |
(5,510) |
(390) |
(5,900) |
| Gross profit |
1,855 |
1,398 |
1,185 |
798 |
116 |
5,352 |
389 |
5,741 |
| Marketing and distribution |
(623) |
(548) |
(378) |
(267) |
(71) |
(1,887) |
(208) |
(2,095) |
| Research and development |
- |
- |
- |
- |
(1,024) |
(1,024) |
(57) |
(1,081) |
| General and administrative |
(153) |
(121) |
(72) |
(39) |
(174) |
(559) |
(54) |
(613) |
| Restructuring and impairment |
(64) |
(1) |
(12) |
(5) |
(57) |
(139) |
(20) |
(159) |
| Operating income/(loss) |
1,015 |
728 |
723 |
487 |
(1,210) |
1,743 |
50 |
1,793 |
(1) EAME: Europe, Africa and Middle East
(2) The supply of chemical active ingredient to Lanxess AG for the materials protection market, previously reported as part of Professional Products, has been integrated into the geographical segments. This reflects Syngenta's divestment of the materials protection business to Lanxess AG in 2011
New Segmental Results excluding Restructuring and Impairment
| Syngenta (US$ million) |
June 2011 |
December 2011 |
December 2010 |
| Third party sales |
7,702 |
13,268 |
11,641 |
| Gross profit |
3,899 |
6,496 |
5,759 |
| Marketing and distribution |
(1,172) |
(2,387) |
(2,095) |
| Research and development |
(592) |
(1,191) |
(1,081) |
| General and administrative |
(280) |
(622) |
(613) |
| Operating income |
1,855 |
2,296 |
1,970 |
| Depreciation, amortization and impairment |
294 |
594 |
509 |
| Income from associates and joint ventures |
- |
15 |
26 |
| EBITDA |
2,149 |
2,905 |
2,505 |
| EBITDA (%) |
27.9 |
21.9 |
21.5 |
| Total(1) |
Lawn and Garden |
|||||
| (US$ million) |
June 2011 |
December 2011 |
December 2010 |
June 2011 |
December 2011 |
December 2010 |
| Third party sales |
7,233 |
12,447 |
10,862 |
469 |
821 |
779 |
| Gross profit |
3,672 |
6,079 |
5,359 |
227 |
417 |
400 |
| Marketing and distribution |
(1,057) |
(2,160) |
(1,887) |
(115) |
(227) |
(208) |
| Research and development |
(564) |
(1,135) |
(1,024) |
(28) |
(56) |
(57) |
| General and administrative |
(247) |
(560) |
(559) |
(33) |
(62) |
(54) |
| Operating income |
1,804 |
2,224 |
1,889 |
51 |
72 |
81 |
| Depreciation, |
279 |
563 |
477 |
15 |
31 |
32 |
| Income from |
- |
15 |
26 |
- |
- |
- |
| EBITDA |
2,083 |
2,802 |
2,392 |
66 |
103 |
113 |
| EBITDA (%) |
28.8 |
22.5 |
22.0 |
14.1 |
12.5 |
14.5 |
(1) Total excludes Lawn and Garden and includes non-regional
New Segmental Results excluding Restructuring and Impairment: continued
| Europe, Africa and Middle East |
North America |
|||||
| (US$ million) |
June 2011 |
December 2011 |
December 2010 |
June 2011 |
December 2011 |
December 2010 |
| Third party sales |
2,924 |
3,982 |
3,423 |
2,251 |
3,273 |
2,969 |
| Gross profit |
1,620 |
2,184 |
1,855 |
1,107 |
1,631 |
1,401 |
| Marketing and distribution |
(349) |
(685) |
(623) |
(287) |
(554) |
(548) |
| Research and development |
- |
- |
- |
- |
- |
- |
| General and administrative |
(78) |
(166) |
(153) |
(49) |
(114) |
(121) |
| Operating income |
1,193 |
1,333 |
1,079 |
771 |
963 |
732 |
| Latin America |
Asia Pacific |
|||||
| (US$ million) |
June 2011 |
December 2011 |
December 2010 |
June 2011 |
December 2011 |
December 2010 |
| Third party sales |
1,032 |
3,305 |
2,763 |
1,026 |
1,887 |
1,707 |
| Gross profit |
475 |
1,492 |
1,189 |
489 |
903 |
798 |
| Marketing and distribution |
(229) |
(542) |
(378) |
(147) |
(290) |
(267) |
| Research and development |
- |
- |
- |
- |
- |
- |
| General and administrative |
(45) |
(77) |
(72) |
(25) |
(48) |
(39) |
| Operating income |
201 |
873 |
739 |
317 |
565 |
492 |
New Segmental Operating Income reconciled to New Segmental Results excluding Restructuring and Impairment
| For the six months ended (US$ million) |
EAME(1) |
North America |
Latin America |
Asia Pacific |
Non-regional |
Total |
Lawn and Garden |
Total group |
| Operating income/(loss) |
1,178 |
759 |
196 |
314 |
(644) |
1,803 |
27 |
1,830 |
| Restructuring and impairment: |
||||||||
| Cost of goods sold(2) |
5 |
1 |
- |
- |
- |
6 |
- |
6 |
| Expenses |
10 |
11 |
5 |
3 |
(34) |
(5) |
24 |
19 |
| Operating income excluding |
1,193 |
771 |
201 |
317 |
(678) |
1,804 |
51 |
1,855 |
| Operating margin (%) |
40.8 |
34.3 |
19.5 |
30.9 |
n/a |
24.9 |
10.9 |
24.1 |
| For the year ended (US$ million) |
EAME(1) |
North America |
Latin America |
Asia Pacific |
Non-regional |
Total |
Lawn and Garden |
Total group |
| Operating income/(loss) |
1,237 |
932 |
850 |
552 |
(1,539) |
2,032 |
19 |
2,051 |
| Restructuring and impairment: |
||||||||
| Cost of goods sold(2) |
8 |
6 |
- |
- |
- |
14 |
- |
14 |
| Expenses |
88 |
25 |
23 |
13 |
29 |
178 |
53 |
231 |
| Operating income excluding |
1,333 |
963 |
873 |
565 |
(1,510) |
2,224 |
72 |
2,296 |
| Operating margin (%) |
33.5 |
29.4 |
26.4 |
29.9 |
n/a |
17.9 |
8.8 |
17.3 |
| For the year ended (US$ million) |
EAME(1) |
North America |
Latin America |
Asia Pacific |
Non-regional |
Total |
Lawn and Garden |
Total group |
| Operating income/(loss) |
1,015 |
728 |
723 |
487 |
(1,210) |
1,743 |
50 |
1,793 |
| Restructuring and impairment: |
||||||||
| Cost of goods sold(2) |
- |
3 |
4 |
- |
- |
7 |
11 |
18 |
| Expenses |
64 |
1 |
12 |
5 |
57 |
139 |
20 |
159 |
| Operating income excluding |
1,079 |
732 |
739 |
492 |
(1,153) |
1,889 |
81 |
1,970 |
| Operating margin (%) |
31.5 |
24.7 |
26.7 |
28.8 |
n/a |
17.4 |
10.4 |
16.9 |
(1) EAME: Europe, Africa and Middle East
(2) Reversal of inventory step-up
2011 Quarterly Sales Performance
| Integrated sales (US$ million) |
Q1 2011 |
Q2 2011 |
Q3 2011 |
Q4 2011 |
H1 2011 |
H2 2011 |
FY 2011 |
| Europe, Africa and Middle East |
1,597 |
1,327 |
644 |
414 |
2,924 |
1,058 |
3,982 |
| North America |
1,125 |
1,126 |
484 |
538 |
2,251 |
1,022 |
3,273 |
| Latin America |
516 |
516 |
949 |
1,324 |
1,032 |
2,273 |
3,305 |
| Asia Pacific |
522 |
504 |
418 |
443 |
1,026 |
861 |
1,887 |
| Total |
3,760 |
3,473 |
2,495 |
2,719 |
7,233 |
5,214 |
12,447 |
| Lawn and Garden(1) |
257 |
212 |
168 |
184 |
469 |
352 |
821 |
| Group Sales |
4,017 |
3,685 |
2,663 |
2,903 |
7,702 |
5,566 |
13,268 |
| Sales by business |
|||||||
| Crop Protection |
2,669 |
2,714 |
2,075 |
2,219 |
5,383 |
4,294 |
9,677 |
| Seeds |
1,108 |
767 |
433 |
542 |
1,875 |
975 |
2,850 |
| Elimination of Crop Protection sales to Seeds |
(17) |
(8) |
(13) |
(42) |
(25) |
(55) |
(80) |
| Total |
3,760 |
3,473 |
2,495 |
2,719 |
7,233 |
5,214 |
12,447 |
| Lawn and Garden(1) |
257 |
212 |
168 |
184 |
469 |
352 |
821 |
| Group Sales |
4,017 |
3,685 |
2,663 |
2,903 |
7,702 |
5,566 |
13,268 |
| Crop Protection regional sales |
|||||||
| Europe, Africa and Middle East |
1,084 |
1,009 |
511 |
354 |
2,093 |
865 |
2,958 |
| North America |
634 |
813 |
425 |
286 |
1,447 |
711 |
2,158 |
| Latin America |
464 |
470 |
765 |
1,208 |
934 |
1,973 |
2,907 |
| Asia Pacific |
487 |
422 |
374 |
371 |
909 |
745 |
1,654 |
| Total |
2,669 |
2,714 |
2,075 |
2,219 |
5,383 |
4,294 |
9,677 |
| Seeds regional sales |
|||||||
| Europe, Africa and Middle East |
522 |
320 |
135 |
86 |
842 |
221 |
1,063 |
| North America |
497 |
313 |
66 |
266 |
810 |
332 |
1,142 |
| Latin America |
53 |
51 |
187 |
118 |
104 |
305 |
409 |
| Asia Pacific |
36 |
83 |
45 |
72 |
119 |
117 |
236 |
| Total |
1,108 |
767 |
433 |
542 |
1,875 |
975 |
2,850 |
(1) Includes product lines Professional Products and Flowers. Professional Products were formerly reported under Crop Protection and Flowers under Seeds
2011 Quarterly Sales Performance: continued
| Product line sales (US$ million) |
Q1 2011 |
Q2 2011 |
Q3 2011 |
Q4 2011 |
H1 2011 |
H2 2011 |
FY 2011 |
| Selective Herbicides |
827 |
920 |
453 |
417 |
1,747 |
870 |
2,617 |
| Non-selective Herbicides |
250 |
315 |
321 |
231 |
565 |
552 |
1,117 |
| Fungicides |
881 |
848 |
565 |
704 |
1,729 |
1,269 |
2,998 |
| Insecticides |
430 |
428 |
436 |
496 |
858 |
932 |
1,790 |
| Seed Care |
257 |
173 |
256 |
332 |
430 |
588 |
1,018 |
| Other Crop Protection |
24 |
30 |
44 |
39 |
54 |
83 |
137 |
| Total Crop Protection |
2,669 |
2,714 |
2,075 |
2,219 |
5,383 |
4,294 |
9,677 |
| Corn and Soybean |
634 |
328 |
175 |
334 |
962 |
509 |
1,471 |
| Diverse Field Crops |
297 |
218 |
84 |
77 |
515 |
161 |
676 |
| Vegetables |
177 |
221 |
174 |
131 |
398 |
305 |
703 |
| Total Seeds |
1,108 |
767 |
433 |
542 |
1,875 |
975 |
2,850 |
| Elimination of Crop Protection sales to Seeds |
(17) |
(8) |
(13) |
(42) |
(25) |
(55) |
(80) |
| Lawn and Garden(1) |
257 |
212 |
168 |
184 |
469 |
352 |
821 |
| Group Sales |
4,017 |
3,685 |
2,663 |
2,903 |
7,702 |
5,566 |
13,268 |
(1) Includes product lines Professional Products and Flowers. Professional Products were formerly reported under Crop Protection and Flowers under Seeds
Reclassified Condensed Consolidated Income Statements
| For the six months ended June 30, |
2011 as reported |
Research and development |
Syngenta |
2011 reclassified |
| Sales |
7,702 |
7,702 |
||
| Cost of goods sold |
(3,785) |
(24) |
(3,809) |
|
| Gross profit |
3,917 |
- |
(24) |
3,893 |
| Marketing and distribution |
(1,052) |
39 |
(159) |
(1,172) |
| Research and development |
(559) |
(39) |
6 |
(592) |
| General and administrative |
(457) |
177 |
(280) |
|
| Restructuring and impairment |
(19) |
(19) |
||
| Operating income |
1,830 |
- |
- |
1,830 |
| For the year ended December 31, (US$ million) |
2011 as reported |
Research and development |
Syngenta |
2011 reclassified |
| Sales |
13,268 |
13,268 |
||
| Cost of goods sold |
(6,737) |
(49) |
(6,786) |
|
| Gross profit |
6,531 |
- |
(49) |
6,482 |
| Marketing and distribution |
(2,145) |
76 |
(318) |
(2,387) |
| Research and development |
(1,127) |
(76) |
12 |
(1,191) |
| General and administrative |
(977) |
355 |
(622) |
|
| Restructuring and impairment |
(231) |
(231) |
||
| Operating income |
2,051 |
- |
- |
2,051 |
| For the year ended (US$ million) |
2010 as reported |
Research and development |
Syngenta |
2010 reclassified |
| Sales |
11,641 |
11,641 |
||
| Cost of goods sold |
(5,866) |
(34) |
(5,900) |
|
| Gross profit |
5,775 |
- |
(34) |
5,741 |
| Marketing and distribution |
(1,892) |
66 |
(269) |
(2,095) |
| Research and development |
(1,032) |
(66) |
17 |
(1,081) |
| General and administrative |
(899) |
286 |
(613) |
|
| Restructuring and impairment |
(159) |
(159) |
||
| Operating income |
1,793 |
- |
- |
1,793 |
Announcements and Meetings
| First half results 2012 |
July 26, 2012 |
| Crop update |
September 24-26, 2012 |
| Third quarter trading statement 2012 |
October 23, 2012 |
| Full year results 2012 |
February 06, 2013 |
| First quarter trading statement 2013 |
April 18, 2013 |
Syngenta is one of the world's leading companies with more than 26,000 employees in over 90 countries dedicated to our purpose: Bringing plant potential to life. Through world-class science, global reach and commitment to our customers we help to increase crop productivity, protect the environment and improve health and quality of life. For more information about us please go to www.syngenta.com.
Cautionary Statement Regarding Forward-Looking Statements
This document contains forward-looking statements, which can be identified by terminology such as 'expect', 'would', 'will', 'potential', 'plans', 'prospects', 'estimated', 'aiming', 'on track' and similar expressions. Such statements may be subject to risks and uncertainties that could cause the actual results to differ materially from these statements. We refer you to Syngenta's publicly available filings with the U.S. Securities and Exchange Commission for information about these and other risks and uncertainties. Syngenta assumes no obligation to update forward-looking statements to reflect actual results, changed assumptions or other factors. This document does not constitute, or form part of, any offer or invitation to sell or issue, or any solicitation of any offer, to purchase or subscribe for any ordinary shares in Syngenta AG, or Syngenta ADSs, nor shall it form the basis of, or be relied on in connection with, any contract there for.
| Syngenta International AG |
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SOURCE Syngenta
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