Agrochemicals maker Makhteshim Agan Industries Ltd. (TASE: MAIN) more than tripled its net profit on higher revenue for the second quarter of 2011. Revenue rose 20% to $723.1 million for the second quarter from $600.9 million for the corresponding quarter of 2010, and net profit rose 266% to $45.4 million from $12.4 million.
Makhteshim chairman Ami Erel attributed the results to "the effective measures the company has taken during the last 18 months, which have culminated in significantly improved profitability and record sales."
Makhteshim's growth was driven by a 15% increase in sales volume, combined with the consolidation of the company's acquisitions: JK Inc. in South Korea and Ingenieria Industrial SA de CV (BravoAg) in Mexico. The weak dollar increased the value of the company's European and Australian sales in US dollar terms.
Makhteshim's revenue growth was driven by higher sales in most regions. Asia-Pacific sales rose 33% to $114 million for the second quarter from $85 million for the corresponding quarter, European sales rose 20% to $316 million from $216 million, and North American sales rose 19.5% to $151 million from $126 million. Latin American sales lagged with 9% growth to $114 million for the second quarter from $105 million for the corresponding quarter. Israeli sales rose 20% to $27.5 million from $22.9 million.
Cash flow from operations was $268.9 million for the second quarter, barely changed from the corresponding quarter.
Yesterday, Makhteshim's shareholders unanimously approved its takeover by the sale of the company to China National Chemical Corporation (ChemChina). When the deal is closed in October, IDB Holding Corp. Ltd. (TASE:IDBH) unit Koor Industries Ltd. (TASE:KOR) will own 40% of Makhteshim and ChemChina will own 60%.
Makhteshim's share price rose 0.9% by mid-afternoon today to NIS 18.73, giving a market cap of NIS 8.08 billion.
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