MA Industries (Makhteshim Agan) (TASE: MAIN) published its financial report for the second quarter of 2008 today. Net profit for the second quarter rose 28.4% to $68.8 million. Sales for the second quarter rose 25.8% to $682.3 million, from $542.5 million in the corresponding quarter in 2007. Crop protection sales were 28.3% higher than in the corresponding quarter last year. The company said the growth in sales stemmed primarily from sales in Europe, which amounted to $279.9 million compared with $219.1 million in the same quarter last year, an increase of 27.8%, and growth in South America, where sales totaled $143.6 million, an increase of 49.6%. In the rest of the world, sales totaled $85.9 million, up 31.1%.
Gross profit for the quarter rose to $239.3 million from $188.8 million in the corresponding quarter. The increase in gross profit was partially offset by an increase in costs stemming primarily from the rise in oil prices.
Makhteshim chairman and CEO Avraham Bigger said, "The company reported second quarter record sales and profits. The crop protection market demonstrated significant growth during the first half of the year resulting from continuation of the positive trends that affect it. The increase in world population and a rise in standard of living, particularly in growth markets, result in continued good price levels of agricultural outputs and increased planted acreage, which in turn lead to strong demand of crop protection products.
"The solid farm economics and the strong demand for our products enable us to uphold our average selling prices which, together with continued cost containment, led to an improvement of the company's gross profitability and continued increase of its operating profitability."
Published by Globes [online], Israel business news - www.globes-online.com - on August 7, 2008
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