Agrochemicals manufacturer Makhteshim Agan Industries Ltd. narrowed its losses on higher revenue for the fourth quarter and full year of 2011, and plans to go public within three years, although it did not state on which stock exchange. The company attributed its growth to new operations, higher selling prices and favorable currency exchange rates.
Full-year revenue rose 14% to $2.69 billion in 2011 from $2.36 billion in 2010. Net profit quintupled to $120.7 million, excluding one-time charges, in 2011 from $21.1 million in 2010, and a net loss of $131.9 million, including one-time charges in 2010.
Fourth quarter revenue rose 8.7% to $549.3 million from $505.1 million for the corresponding quarter of 2010, while net loss narrowed to $26.7 million from $39.8 million, and a net loss of $159.3 million including one-time charges.
Asia was Makhteshim's fastest growing business area, with a 24.4% growth to $451.9 million in 2011 from $363.3 million in 2010, although the region was still the smallest in terms of total sales. Latin American sales rose 13% to $609.3 million in 2011 from $539.6 million in 2010, North American sales rose 18.3% to $478.4 million from $404.3 million, and European sales rose 8.7% to $1.05 billion from $965.6 million.
Cash flow from operations nearly doubled to $306.2 million in 2011 from $162.4 million in 2010.
In October 2011, Nochi Dankner-controlled IDB Holding Corp. Ltd. (TASE:IDBH) completed the sale of Makhteshim to China National Chemical Corporation (ChemChina), which now owns 60% of the company, while IDB unit Koor Industries Ltd. (TASE:KOR) owns 40%.
In 2011, Makhteshim opened its Indian formulation and packing plant in Dahej, which will serve Asian operations. The company also opened a new agricultural technologies division to develop operations in the seed and biotechnological sector, and other supplementary agriculture areas later.
Makhteshim chairman Yang Xingqiang said that the company's "groundbreaking" merger with ChemChina created a strong foundation in the crop protection market to place Makhteshim in a leading position in the global crop protection market.
Makhteshim president and CEO Erez Vigodman contributed the company's growth to favorable climatic conditions, increase in planting areas in 2011 and higher prices for agricultural commodities, which contributed to a relatively stable pricing environment.
Published by Globes [online], Israel business news - www.globes-online.com - on March 11, 2012
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