AGL 40.02 Decreased By ▼ -0.01 (-0.02%)
AIRLINK 127.99 Increased By ▲ 0.29 (0.23%)
BOP 6.66 Increased By ▲ 0.05 (0.76%)
CNERGY 4.44 Decreased By ▼ -0.16 (-3.48%)
DCL 8.75 Decreased By ▼ -0.04 (-0.46%)
DFML 41.24 Decreased By ▼ -0.34 (-0.82%)
DGKC 86.18 Increased By ▲ 0.39 (0.45%)
FCCL 32.40 Decreased By ▼ -0.09 (-0.28%)
FFBL 64.89 Increased By ▲ 0.86 (1.34%)
FFL 11.61 Increased By ▲ 1.06 (10.05%)
HUBC 112.51 Increased By ▲ 1.74 (1.57%)
HUMNL 14.75 Decreased By ▼ -0.32 (-2.12%)
KEL 5.08 Increased By ▲ 0.20 (4.1%)
KOSM 7.38 Decreased By ▼ -0.07 (-0.94%)
MLCF 40.44 Decreased By ▼ -0.08 (-0.2%)
NBP 61.00 Decreased By ▼ -0.05 (-0.08%)
OGDC 193.60 Decreased By ▼ -1.27 (-0.65%)
PAEL 26.88 Decreased By ▼ -0.63 (-2.29%)
PIBTL 7.31 Decreased By ▼ -0.50 (-6.4%)
PPL 152.25 Decreased By ▼ -0.28 (-0.18%)
PRL 26.20 Decreased By ▼ -0.38 (-1.43%)
PTC 16.11 Decreased By ▼ -0.15 (-0.92%)
SEARL 85.50 Increased By ▲ 1.36 (1.62%)
TELE 7.70 Decreased By ▼ -0.26 (-3.27%)
TOMCL 36.95 Increased By ▲ 0.35 (0.96%)
TPLP 8.77 Increased By ▲ 0.11 (1.27%)
TREET 16.80 Decreased By ▼ -0.86 (-4.87%)
TRG 62.20 Increased By ▲ 3.58 (6.11%)
UNITY 28.07 Increased By ▲ 1.21 (4.5%)
WTL 1.32 Decreased By ▼ -0.06 (-4.35%)
BR100 10,086 Increased By 85.5 (0.85%)
BR30 31,170 Increased By 168.1 (0.54%)
KSE100 94,764 Increased By 571.8 (0.61%)
KSE30 29,410 Increased By 209 (0.72%)

The world's largest agrochemicals company Syngenta's plans to return $750 million to shareholders this year as demand picks up, with a $200 million share buyback and an unchanged dividend. The Swiss group, which makes products to kill weeds and insects and develops genetically modified seeds, had a tough year as prices for farming products fell, but sounded a more optimistic on 2010 based on rising agricultural demand.
"Improved conditions in emerging markets are contributing to a more positive outlook for 2010 and lead us to expect volume growth starting in the second quarter," Chief Executive Mike Mack said in a statement on Friday, targeting growth in earnings per share (EPS) for 2010. Agricultural suppliers such as Syngenta and its US-based rival Monsanto, as well as Canadian fertiliser company Potash Corp and Germany's K+S, have struggled with lower sales as prices for farming products fell.
But the Swiss group's more optimistic forecast echoes Monsanto, the world's largest seeds company, which said last month it was on track for good gains this year. "The market fundamentals have clearly improved and 2010 should mark a return to profitable growth, although we didn't get the hoped-for double-digit EPS growth guidance," said Vontobel analyst Patrick Rafaisz.
Syngenta shares rose 1.8 percent to 277.20 Swiss francs by 0852 GMT, lifted by the prospect of more cash for shareholders and healthier agricultural markets and ahead of a weaker DJ Stoxx European chemicals sector. Syngenta said its full-year net profit edged down 1 percent to $1.37 billion, hit by lower food prices, but just ahead of forecasts.
The stock trades at 13 times forecast 2011 earnings, a discount to Monsanto but at a premium to other European chemicals companies. Syngenta proposed a 2009 dividend of 6 Swiss francs ($5.66) per share, lower than a forecast 6.27 francs. It had been expected to post net profit of $1.32 billion.

Copyright Reuters, 2010

Comments

Comments are closed.