DGAP-News: KWS SAAT AG: KWS SAAT AG meets growth targets

ID: 1015398
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(businesspress24) - KWS SAAT AG / Quarter Results

28.05.2010 07:30

Dissemination of a Corporate News, transmitted by
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KWS SAAT AG meets growth targets

KWS increases net sales and profits thanks to good corn and sugarbeet
business in the first nine months of the current fiscal year 2009/2010

(Einbeck, May 28, 2010/No. 16/gf) - KWS SAAT AG (ISIN: DE0007074007), one
of the leading international seed breeding companies, underpinned its
steady growth of recent years in the first nine months of fiscal 2009/2010.
The good performance of its two largest segments - corn and sugarbeet -
more than offset the restrained demand for cereals. Net sales at the KWS
Group improved by around 3% to EUR586.9 (EUR572.3)* million in the period
under review. Now that most of the spring sowing season is completed, KWS
expects net sales to increase by about 4% and operating income to be on a
par with the previous year (EUR77.9 million) for fiscal 2009/2010 as a
whole.

Net sales of corn and sugarbeet rise again

Demand for certified high-yielding corn seed increased as a result of our
good variety performance. Net sales rose by just over 6% to EUR317.6
(EUR298.7) million at March 31, 2010. 'We are confident about winning
additional market share in our most important European corn sales regions.
We will defend our position in North America, despite considerable
competitive pressure,' said Hagen Duenbostel, Chief Financial Officer of
KWS SAAT AG, about the good performance in the corn segment. The sugarbeet
segment likewise posted an increase in net sales of just over 6% to
EUR188.1 (EUR177.1) million in the current fiscal year. While business


stabilized in the EU 27 (the countries covered by the European Sugar Market
Regime), a boost was felt from high market prices for sugar and increasing
cultivation area in Eastern Europe. Net sales at the cereals segment fell
to EUR65.0 (EUR79.4) million. The breeding&services segment posted net
sales of EUR16.2 (17.1) million, which were generated from seed potato
business and the farms.

Research&development secures KWS' future

To secure and expand its good market position, KWS is significantly
intensifying its research and product development work, as reflected in the
10% increase in the R&D budget over the previous year (EUR89.5 million).
Capital expenditure in the past nine months was EUR42.6 million, at about
the level of the previous year's EUR44.1 million. As a result of the
company's good performance and these investments to secure its future, the
number of employees increased again to 3,501 (3,285) at March 31.

The KWS Group's operating income (EBIT) improved to EUR118.2 (EUR105.8)
million. However, the figure at the end of the year will be reduced by
further expenditure on research&development. Net financial
income/expenses was EUR -4.1 (EUR -4.2) million. After income taxes of
EUR32.2 (EUR30.9) million, net income for the period rose to EUR81.9
(EUR70.7) million.

Further increase in net sales by the end of the fiscal year

KWS expects to grow its consolidated sales by about 4% in the current
fiscal year. Operating income will probably be at the level of the previous
year (EUR78 million), despite the increase in expenditure on product
development. 'Economies of scale associated with the gratifying expansion
of our business volume will improve our return on investment at the corn
segment. Higher unit revenue for our herbicide-tolerant sugarbeet in the
U.S. will bolster results for this segment. In contrast, income at the
cereals segment will fall as a result of restrained business in our
high-margin hybrid rye. At breeding&services, we will spend a
considerable sum on research&development in the fourth quarter,' said
Duenbostel.

The quarterly report can be downloaded at www.kws.com/ir.

Contact:

Georg Folttmann

Phone: +49 (0) 55 61 / 311-640

g.folttmann(at)kws.com

* The figures in parentheses are those for the previous year


28.05.2010 07:30 Ad hoc announcement, Financial News and Media Release distributed by DGAP. Medienarchiv atwww.dgap-medientreff.deandwww.dgap.de---------------------------------------------------------------------------

Language: English
Company: KWS SAAT AG
Grimsehlstraße 31
37574 Einbeck
Deutschland
Phone: +49 (0)5561 311-0
Fax: +49 (0)5561 311-322
E-mail: info(at)kws.com
Internet: www.kws.de
ISIN: DE0007074007
WKN: 707400
Indices: S-DAX
Listed: Regulierter Markt in Frankfurt (Prime Standard), Hannover;
Freiverkehr in Berlin, Düsseldorf, München, Hamburg,
Stuttgart

End of News DGAP News-Service

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Date: 05/28/2010 - 01:30
Language: English
News-ID 1015398
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