Agrochemicals maker Makhteshim Agan Industries Ltd. (TASE: MAIN) today published its financial report for the third quarter of 2008. The company posted $640.1 million revenue, 28.8% more than the $496.9 million for the corresponding quarter of 2007. January-September revenue of $2.04 billion was nearly equal to the $2.06 billion revenue in 2007 as a whole.
Net profit was $50.6 million, 160% more than the $19.5 million net profit for the corresponding quarter excluding the capital gain on the sale of Rice Company. Including this sale, the net profit for the corresponding quarter was $30.7 million.
Makhteshim Agan announced that it will distribute a $50 million dividend.
Crop protection sales totaled $587.4 million for the third quarter, 30% more than the $452 million for the corresponding quarter. Third quarter sales in Europe totaled $248.8 million, 38.7% more than for the corresponding quarter; sales in South America rose 29.1% to $206.1 million, sales in North America rose 17.6% to $93.3 million.
Makhteshim Agan chairman and Avraham Bigger said, “The company is achieving the goals it set itself at the beginning of 2007 in terms of continued improvement in both operating profit and margin." He noted that the global financial crisis, accompanied by a decline in the price of agricultural outputs, a drop in oil prices and the appreciation of the dollar against other currencies did not have a substantial affect on the company's operational results operations during the quarter. However, he cautioned, "The changes in the trends that affect the crop protection market, should they continue, together with the broad effects of the global financial crisis, may affect the company's growth rate in the near future, but do not affect the positive fundamentals of the industry, nor the company’s outstanding ability to capitalize on these trends."
Makhteshim Agan's share nevertheless fell 2.4% at the opening on the TASE.
Makhteshim is a unit of Nochi Dankner's IDB Holding Corp. Ltd. (TASE:IDBH), held through Discount Investment Corporation (TASE: DISI) subsidiary Koor Industries Ltd. (TASE:KOR).
Published by Globes [online], Israel business news - www.globes-online.com - on November 5, 2008
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