Syngenta profits boosted by demand

Basel-based Syngenta, the world's largest agrochemicals company, has posted a 14 per cent rise in full-year net profit to $1.6 billion (SFr1.46 billion) for 2011.

Sales were also up by the same margin, reaching $13.3 billion last year.

Farmers, especially in the United States and Latin America, have been seeking to boost yields and offset inflation on the back of higher wheat, corn and soybean prices. As a result they have been buying more products from Syngenta and its rivals, such as DuPont and Monsanto.

Syngenta, whose product line includes weed and insect killers as well as genetically modified seeds, is aiming for higher earnings this year as price hikes and cost savings of $190 million are expected to help it offset the impact of the strong Swiss franc and raw material prices.

The company plans to increase prices by between two and three per cent this year after raising them by four per cent last year.

Syngenta said it was sticking to its goals to make savings of $650 million by 2015. The company also reiterated it is aiming for a margin on an earnings before interest, tax, depreciation and amortisation level of 22 to 24 per cent by 2015.