(Extract from the Quarterly Report for Auriga Industries A/S for the period January 1, 2005 - Septermber 30, 2005)
In third quarter 2005, Cheminova generated revenues of DKK 1,078 million (DKK 1,148 million) which is largely in line with expectations.
Sales of malathion to the US boll weevil eradication programme started already in June this year. Deliveries to this programme will again this year be higher than expected, but lower than last year.
In South America and India the season started somewhat later than in 2004, but especially in Brazil sales have developed satisfactorily since the end of September. This year is again expected to see a large demand for fungicides to prevent Asian rust in soya in Brazil.
The Brazilian farmers have seen falling prices on important crops aggravated by an increase in the Brazilian exchange rate relative to the US dollar. The decline in income among Brazilian farmers has meant that Cheminova in some cases has had to extend the credit terms until spring 2006.
In the northern hemisphere the spraying season ended in most places at the beginning of the third quarter. However, in the third quarter Cheminova Mexico continued the satisfactory growth which also characterised the first half of 2005.
Sales of Cheminova’s new products have so far developed satisfactorily in 2005. The new products account for a minor share of Cheminova’s total revenues, but this share will increase in the coming years. Cheminova’s portfolio of products comprises just over 30 products, twice as many as five years ago.
Cheminova is continuing to increase its number of sales subsidiaries. Following the opening of sales subsidiaries in Poland and Bulgaria, Cheminova is now represented by sales subsidiaries in fourteen countries, and the distribution network is expected to be enlarged further in the coming years.
In October Cheminova’s subsidiary in the UK, Headland, acquired the company Verdi-Crop Ltd. Verdi-Crop is a minor distributor of micronutrients. The acquisition opens up new possibilities of expanding Headland’s production and sales of micronutrients.
Cheminova maintains the outlook of revenues for 2005 of approx. DKK 4,000 million.
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The total Quarterly Report can be found on Auriga's website www.auriga-industries.com.
November 9, 2005
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