Syngenta: An Unexpected Dividend Raise Initiated By The Swiss National Bank
- The Swiss National Bank has suspended maintaining a price floor for the euro against the Swiss franc.
- Syngenta reports in US dollars, but the dividend is declared in Swiss francs.
- The appreciation of the Swiss franc automatically increases the dividend and the yield for Syngenta ADRs.
- The downside is that the new strength of the Swiss franc will negatively impact Syngenta’s costs.
Syngenta: Demographic Trends Will Result In Future Revenue And Earnings Growth
- Syngenta AG is a Swiss agribusiness operating in the crop protection and seeds business.
- The global challenge is producing more food with limited land and water resources. Syngenta is focused on developing new varieties of seeds that give higher yields and are more robust.
- Syngenta has paid a consistently growing annual dividend since 2002 (CAGR = 30%). For future years, expect dividend growth to be more in line with earnings growth.
- At the current prices, Syngenta seems slightly undervalued to fairly valued.
Update: Syngenta Earnings-The Time Has Come To Consider The Market Leader In Agrochemicals
- Since my first article on Syngenta in May 2014, the share is down by 8%.
- The Q2 results send mixed signals, but the overall perspective for the stock remains very good.
- Given the short-term outlook for the agrochemical industry, it is likely that attractive buying opportunities for long-term oriented investors will materialize over the next 6 to 12 months.
Syngenta: The Market Leader In Agrochemicals Has Become A Dividend Grower
- Syngenta is the world’s leading agrochemical company and a major player in the seed market.
- The company benefits from the excellent long-term perspective of agriculture.
- Syngenta has increased its dividend by more than 500% in the last ten years.
- The stock is an attractive long-term investment, not only for dividend growth investors.
Thu, Jan. 15, 9:16 AM
Mon, Jan. 12, 11:59 AM
- Syngenta (SYT +0.4%) is upgraded to Buy from Neutral with a $78.31 price target at BofA Merrill, which believes planned cost reductions, prospective raw material savings and product innovation offers earnings upside in 2016 despite expected cyclical price pressure this year.
- While top-line growth will likely be anemic in 2015, BofA believes management has an opportunity to accelerate bottom-line earnings growth as the year progresses; as such, the firm sees the potential for SYT earnings upside vs. consensus in 2016 as the re-ignition of top-line growth coincides with raw material cost savings potential.
Dec. 17, 2014, 4:57 PM
- A top Chinese government official says the country has approved Syngenta’s (NYSE:SYT) genetically modified Agrisure Viptera corn, one year after China began rejecting shipments of grain it said contained traces of the unapproved trait, according to U.S. Agriculture Secretary Tom Vilsack.
- Chinese Vice Premier Wang Yang said imports of the MIR 162 corn had been approved by China's Ministry of Agriculture, Vilsack says, adding that the ministry also approved imports of biotech soybeans developed by DuPont Pioneer (NYSE:DD) and Bayer CropScience (OTCPK:BAYZF, OTCPK:BAYRY).
- The import approvals do not represent a loosening of China's long regulatory review process for GMO crops, Vilsack says.
Dec. 12, 2014, 5:44 PM
- Syngenta (NYSE:SYT) says it expects China soon will approve imports of the Agrisure Viptera strain of genetically modified corn that has sparked lawsuits from grain traders and farmers blaming the company for losses because of shipments rejected by Beijing.
- Last year, China began rejecting cargoes of American corn after tests found the unapproved strain mixed in with corn shipments; grain companies including Cargill and ADM have sued SYT over what they say were tens of millions of dollars in lost sales.
Nov. 25, 2014, 11:11 AM
- China’s barriers to imports of some U.S. genetically modified crops are disrupting seed companies' plans for new product launches and keeping at least one variety out of the U.S. market altogether, Reuters reports.
- Dow AgroSciences (NYSE:DOW) and Syngenta (NYSE:SYT) are tightly controlling U.S. launches of new GMO seeds, telling farmers where they can plant new corn and soybean varieties and how can the use them, while Bayer CropScience (OTCPK:BAYZF, OTCPK:BAYRY) is keeping a new soybean variety on hold until it receives Chinese import approval.
- China is taking longer than in the past to approve new GMO crops and began rejecting U.S. imports a year ago, saying they were tainted with a GMO corn variety approved in the U.S. but not in China.
- Controlled launches are at best a temporary fix because they are costly, complicated and risk accidental contamination of other export grains, says the head of the U.S. Soybean Export Council.
Nov. 19, 2014, 4:56 PM
- Archer Daniels Midland (NYSE:ADM) is suing Syngenta (NYSE:SYT) over rejections by China of a genetically modified corn variety not approved for import in the country.
- The lawsuit alleges that SYT commercialized the Agrisure Viptera corn variety without enacting "reasonable stewardship practices" to ensure the grain would not be shipped to markets that had not approved it.
- Grain exporter Cargill also has sued SYT over claims it illegally marketed its Agrisure Viptera corn seed before getting import approval from China.
Oct. 20, 2014, 12:40 PM
- Syngenta (SYT +1.4%) faces escalating legal battles over its sale of genetically engineered corn seeds that some farmers and agricultural companies say have depressed overall market prices for the grain, driving more than $1B in losses for U.S. farmers.
- On Friday, farmers filed complaints against SYT in Alabama, Georgia, Mississippi and Louisiana after earlier lawsuits spanning other farm states and separate cases filed last month by grain exporters Cargill and Trans Coastal Supply, which argued that they lost tens of millions of dollars after Chinese grain inspectors detected the SYT corn in cargoes and turned away shipments.
- SYT says the cases have no merit and that it has been transparent about the approval process for the Viptera GMO corn in question.
Oct. 16, 2014, 8:17 AM
- Swiss ag company Syngenta (NYSE:SYT) says Q3 sales rose to $2.98B compared with $2.92B in the year-ago period and in line with analyst expectations of $3B.
- Sales in Latin America, SYT’s biggest regional market and where the growing season has just begun, rose 3% to $1.27B; sales in the Europe, Africa and Middle East region gained 2% to $631M, while Asia rose 4% and North America added 1%.
- SYT says its integrated business, a subset of its operations that excludes a lawn-and-garden business, rose 2%.
Oct. 2, 2014, 2:59 PM
- Fertilizer producers are mostly lower after Agrium (AGU -1.9%) announced weak guidance for H2 of its FY 2014: POT -2%, MOS -0.9%, OTCPK:YARIY -2.8%, IPI -2.3%, RNF -1.2%, but CF +2.4%.
- Canaccord and Piper Jaffray downwardly revised their 12-month price targets for the stock, by a respective 1.9% to $102 while reiterating a Buy rating and by 4.2% to $92 while maintaining a Neutral rating; however, BMO and RBC each reiterated their Outperform ratings on the stock with respective target prices of $99 and $115.
- Jim Cramer thinks AGU's woes could reverberate throughout the ag sector, at least in the near-term, with selling possibly spread to the likes of Monsanto (MON -0.4%), Syngenta (SYT +0.1%), Deere (DE +0.1%) and Agco (AGCO +1%).
Sep. 29, 2014, 7:04 AM
- Syngenta (NYSE:SYT) chief operating officer John Atkin will retire at the end of this year and will be replaced by Jon Parr, head of global crops and assets.
- Syngenta says Atkin "played a pivotal role in the creation" of the company by merging two crop protection businesses.
- Atkin served as COO since Syngenta was founded in 2000.
Sep. 12, 2014, 3:58 PM
- Cargill is suing Syngenta (SYT -0.7%), alleging the seed maker's push to sell corn seeds containing genetic modifications that were not approved in China led to "significant damages" to Cargill and the U.S. agricultural industry generally when China rejected corn shipments.
- China has rejected imports of U.S. corn since last November because of the presence of SYT's MIR-162 insecticide resistance trait; resulting in a 90% drop in exports of U.S. corn to China during H1 of 2014.
Aug. 28, 2014, 10:43 AM
- Syngenta (SYT -0.3%) is open to a deal, whether as an acquirer or as a target, perhaps with Dow Chemical (DOW -1.4%) or DuPont (DD +0.2%), Bloomberg speculates.
- SYT and Monsanto (MON -0.5%) held preliminary talks with advisers earlier this year about a combination that never came to fruition, which shows SYT’s willingness to make a deal, analysts say.
- One option discussed is a takeover of Dow’s agricultural business, which Dow is open to divesting; SYT also could merge with DuPont and then spin off the U.S. company’s non-agricultural businesses.
- Dow may be a better candidate to use a SYT acquisition to relocate overseas for tax advantages, analysts suggest, but with the Obama administration looking at ways to discourage tax-inversion acquisitions, DuPont’s well-known brands and sales to the U.S. military may spark greater political pushback.
Aug. 26, 2014, 9:36 AM
- A group of global biotech crop companies have blocked a law passed last year which limits the planting of biotech crops and use of pesticides on the Hawaiian island of Kauai. The Hawaiian islands are a popular testing ground for the crops due to their favorable year-round climate.
- U.S. Magistrate Judge Barry Kurren agreed with arguments presented by DuPont (DD +0.2%), Syngenta (SYT +0.9%) and Agrigenetics and ruled that the law passed in November by local leaders on the island was invalid because it was pre-empted by Hawaii state law.
- The law was to take effect on Aug. 16, but its enactment was delayed due to the pending court decision.
- Syngenta, DuPont and Agrigenetics lease thousands of acres on Kauai for GMO crop testing.
Jul. 24, 2014, 12:59 AM
Jul. 23, 2014, 9:18 AM
Jun. 27, 2014, 8:16 AM
- DuPont (DD) -3.1% premarket after cutting its Q2 and FY 2014 earnings outlook, pointing to slower than expected sales growth in its agriculture and performance chemicals units.
- DD said in a conference call that it expects Q2 operating earnings in its agriculture business to fall in the low teens in percentage terms, with corn pricing in North America expected to be slightly lower than its previous estimate and returns of unused corn seeds in Brazil to be higher than anticipated.
- Dow Chemical (DOW) -0.7% premarket; chemical peers FMC, SYT, MON, LYB, CE and HUN also will be on watch today.
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