UPDATE: Syngenta 1Q Revenue Hit By Dollar Rise, Keeps EPS Goal

Swiss agrochemical company Syngenta AG (SYT) Wednesday reported a worse-than-expected 4% drop in first-quarter sales, mainly due to the rise in the dollar, which will also hit operating profit in 2009.

But the Basel-based company confirmed that it still wants to increase earnings per share this year, as price rises will make up for the currency movements.

"The impact from currency fluctuations has been stronger than we anticipated," Chief Financial Officer John Ramsey told Dow Jones Newswires. "The impact this year might exceed $150 million on a net basis (on 2009 operating profit), but is unlikely to rise above $200 million."

In February, Syngenta said it expects currency fluctuations, especially in struggling emerging markets, to shave off up to $150 million of 2009 operating profit.

The Basel-based producer of crop-protection chemicals and seeds said sales in the three months to March 31 fell to $3.6 billion from $3.79 billion a year earlier.

A poll of five analysts surveyed by Dow Jones Newswires had forecast sales of $3.74 billion.

The company said it still expects its 2009 fully diluted earnings per share, excluding non-recurring income, restructuring and impairments, to be above 2008.

In constant exchange rates, Syngenta will improve its margins in 2009, mainly driven by raising prices for its products, Chief Executive Mike Mack said told Dow Jones Newswires.

Syngenta's shares closed Tuesday at CHF221.50. The shares have fallen about 24% in the past 12 months but are up 14% year-to-date, helped by strong demand from agricultural markets.

Company Web Site: www.syngenta.com

-By Julia Mengewein, Dow Jones Newswires; [phone]; [e-mail]