Growth in North and South America led to increased revenue for Makhteshim Agan Industries Ltd. (TASE: MAIN). The agrochemicals firm reported fourth quarter revenue of $491 million, an increase of 3.8% over the $473 million recorded in the corresponding quarter of the previous year.
The company said that the increased revenue was due primarily from sales in North America, which rose 27.8% to $99.3 million compared to $77.8 million in 2007, and growth in South America, which rose 6.5% to $177.9 million. Fourth quarter revenue from European sales fell 6.4% to $142.2 million, compared to $151.9 million recorded in 2007.
Net profit for the year was 48% higher at $219 million compared with net profit, adjusting for the capital gain from the sale of RC, of $147.9 million in 2007.
Fourth quarter net profit more than doubled to $8.7 million, representing 1.8% of sales, compared with $3.6 million, or 0.8% of sales, in the corresponding quarter of the previous year.
Makhteshim chairman and CEO Avraham Bigger said, “Makhteshim Agan achieved record 2008 sales and profits. These strong results stem from the positive sector fundamentals and our continued efficiency drive." He added, "the positive sector fundamentals have not changed, although due to the global economic conditions, industry-wide growth has slowed down in recent months."
The CEO said that as along with other IDB Holding Corp. Ltd. (TASE:IDBH) companies, management had "demonstrated social and business responsibility" and foregone 8-10% of its salary until the end of 2009 due to the global economic conditions. Additionally, despite record profit achieved by the company, the board decided to reduce management bonus will by 20%.
Shares in Makhteshim rose 2.5% in morning trading on the Tel Aviv Stock Exchange (TASE).
Published by Globes [online], Israel business news - www.globes-online.com - on March 11, 2009
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