KWS SAAT SE & Co. KGaA

Earnings Release • Nov 26, 2010

News Details

Corporate | 26 November 2010 07:30

KWS SAAT AG: KWS begins the new fiscal year with growth

KWS SAAT AG / Key word(s): Quarter Results

26.11.2010 07:30

The KWS Group's fall business was positive, showing slight growth in net
sales in the Corn and Cereals Segments.

(Einbeck, November 26, 2010/No. 36/gf) - KWS SAAT AG (ISIN: DE0007074007),
one of the leading international seed companies, has started the new fiscal
year 2010/2011 by growing its net sales. In the first three months, from
July to September, the company primarily sells winter cereal and winter
rapeseed varieties, which are sown in the fall and normally account for
about ten percent of annual net sales. Corn and sugarbeet, the largest
contributors to net sales, are not sown until the spring. As a result, the
third quarter (January - March) is crucial to KWS' business performance.
Consolidated net sales in the first quarter were EUR71.1 (65.3) million, up
around 9% year-on-year. Operating income improved by almost 15% to EUR
-24.0 (-28.1) million.

Corn continues to drive KWS' growth

Almost 60% of net sales in the first quarter were generated in the Cereals
Segment. 'In the 2010 fall sowing season, KWS benefited from improved
hybrid rye business and excellent business with wheat in the UK,' said
Hagen Duenbostel, the Chief Financial Officer of KWS SAAT AG. Despite
difficult weather conditions, net sales from rapeseed were stable
year-on-year thanks to the increased contribution from hybrid varieties.
'The Corn Segment will continue to drive our growth this year,' added
Duenbostel. 'We are also making advances in young markets, such as
Argentina.' Net sales there are trending positively, he noted, adding that
a quarter of the corn varieties sold in Argentina are genetically improved.

Workforce is growing steadily

KWS continues to make extensive investments to secure its long-term growth.
In the first quarter, the company invested EUR13.5 (12.7) million in
property, plant and equipment. It is thus showing capital expenditure well
above quarter-related depreciation at EUR5.8 (5.1) million. This growth is
also reflected in the increase in the headcount: At September 30, 2010,
3,513 people (3,286) were employed worldwide at KWS and its subsidiaries.
'We have grown in just about all regions,' said Duenbostel. 'We plan to
increase the workforce to around 3,600 by the end of the fiscal year.'

Outlook: KWS intends to keep on growing

KWS intends to expand its R&D activities further and strive to maintain its
good earnings situation and a double-digit return. 'We expect the KWS Group
to increase its net sales and income by approximately 5% for fiscal
2010/2011 as a whole,' said Duenbostel in giving his forecast for the
current fiscal year.

Contact:

Georg Folttmann
Phone: +49 (0)5561 / 311-640
g.folttmann@kws.com

* The figures in parentheses are those for the previous year

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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@kws.com
Internet: www.kws.de
ISIN: DE0007074007
WKN: 707400
Indices: S-DAX
Listed: Regulierter Markt in Frankfurt (Prime Standard), Hannover;
Freiverkehr in Hamburg, München, Düsseldorf, Berlin,
Stuttgart

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