Corporate | 27 May 2011 07:30


KWS SAAT AG: KWS confirms strong forecast for the fiscal year as a whole


KWS SAAT AG / Key word(s): Quarter Results

27.05.2011 / 07:30

KWS confirms strong forecast for the fiscal year as a whole

Net sales in the first nine months rise by 12% to EUR656.2 million – Operating income (EBIT) improves by more than 15% to EUR136.4 million – Corn Segment is the strongest contributor to net sales and grows by 18%

(Einbeck, May 27, 2011/No.25/gf) – KWS SAAT AG (ISIN: DE0007074007), one of the leading international seed companies, grew its net sales by almost 12% to EUR656.2 (586.9)* million in the first nine months of fiscal 2010/2011 (ending June 30). Operating income grew faster than sales revenue, climbing just over 15% to EUR136.4 (118.2) million. The Corn Segment made the largest contribution to net sales and compensated for the slight declines in the Sugarbeet Segment. The sowing season was delayed in North America, with the result that a large part of the revenue from sugarbeet will fall in the fourth quarter. KWS confirms its recently raised guidance for the year as whole and anticipates an increase in consolidated sales of about 10% to EUR830 million. Operating income (EBIT) is expected to grow by 40% to EUR115 million.

Good performance in all segments
The Corn Segment again grew sharply in the first nine months on the back of gains in market share in core European markets and a rise in net sales in North America. Net sales in the Corn Segment increased by 18% to EUR376.1 (317.6) million. Significant income from the reversal of allowances helped EBIT soar by almost 57% to EUR65.4 (41.7) million. In contrast, net sales at the Sugarbeet Segment fell slightly by 3% to EUR182.9 (188.1) million. Legal proceedings relating to the cultivation of Roundup Ready (R) sugarbeet and poor weather conditions in North America postponed sowing to the fourth quarter. At EUR45.5 (43.7) million, income was nevertheless up year-on-year. Net sales in the Cereals Segment rose by 10% to EUR71.7 (65.0) million. Despite higher internal licensing revenue for product development, income at the Breeding & Services Segment fell as expected to EUR7.7 (19.0) million, since R&D expenditure rose significantly.

Capital spending on a par with the previous year
KWS continues to invest in research and product development in order to safeguard its long-term growth. The focus in the first nine months was on investments to expand research capacities at Headquarters in Einbeck (Lower Saxony) and to build additional corn production plants abroad. A total of EUR30.3 (44.3) million has been spent so far. The acquisition in potato breeding and replacement investments still to be made are expected to put the overall volume at the same level as in the previous year (EUR58.4 million). The number of employees grew to 3,650 (3,501) as of March 31.

Outlook: Guidance of May 2 confirmed – Operating income expected to rise by 40%
After completion of the spring sowing season in most regions, the Executive Board significantly raised its guidance for the year as a whole at the beginning of May. ‘The gratifying results the KWS Group anticipates for 2010/2011 are attributable to our continued operational growth and the fact that we are posting high extraordinary income this year. The KWS Group’s net sales are expected to rise by 10% and operating income by 40% year-on-year. At the same time, we have increased our R&D budget by 13% to EUR110 million,’ said Hagen Duenbostel, KWS SAAT AG’s Chief Financial Officer.

Contact:
Georg Folttmann
Phone: +49 (0)5561 / 311-640
g.folttmann@kws.com

* The figures in parentheses are those for the previous year



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Language: English
Company: KWS SAAT AG
Grimsehlstraße 31
37574 Einbeck
Deutschland
Phone: +49 (0)5561 311-0
Fax: +49 (0)5561 311-322
E-mail: info@kws.com
Internet: www.kws.de
ISIN: DE0007074007
WKN: 707400
Listed: Regulierter Markt in Frankfurt (Prime Standard), Hannover; Freiverkehr in Berlin, Düsseldorf, Hamburg, München, Stuttgart
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126477  27.05.2011