Syngenta AG plans price hikes in 2012
Syngenta AG expects prices for seeds and crop protection products to rise in 2012, partly due to increased inflationary pressure in emerging markets, chief financial officer John Ramsay said.
"Prices have stabilized in 2011," Ramsay told Dow Jones Newswires in an interview after the Swiss agrochemicals reported a 14 percent rise in first-half net profit to $1.4 billion.
"But we are looking at price increases in 2012 as inflation in emerging markets, which make up some 50 percent of our sales, is significant."
Syngenta has benefited from soaring food prices over the past few months and has said earlier this year that it expects to double revenue from its key products over the next few years. In the first half, sales increased 14 percent to $7.7 billion on soaring demand.
Ramsay said that although Syngenta was "short of candidates" when it comes to potential takeover and partnership targets, it was open for deals.
Even as it expects to generate more than $1 billion in cash in 2011, Ramsay said Syngenta would continue to diligently protect its balance sheet, to have cash on hand for deals. Ramsay, however, said the company is considering to buy back another $100 million in shares.