KWS SAAT AG is one of the parent companies of Great Lakes Hybrids and AgReliant Genetics.

• Sales up 23.9 % at € 51.9 million
• Forecast for a light increase in profits for the year as a whole confirmed

In Q1 2006-7 (as at Sept. 30), KWS SAAT AG (ISIN: DE 0007074007) significantly boosted sales. At the Group level, they rose 23.9 % to € 51.9 million from € 41.9 million the prior year. Although Q1 traditionally sources only a small part of total volume for seed companies, the quality of earnings improved: EBIT was minus € 20.1 m, an 18.6 % improvement on minus € 24.7 million for the year-before period; the net loss for the period came to € 13.2 million, or 27.9 % better than the figure for the prior-year period of minus € 18.3 million. The company reaffirmed its forecast for 2006-7 as a whole, of steady sales (2005-6: € 505.0 million) and slightly enhanced earnings (2005-6: e 46.7 million).

The growth in sales is mainly the result of higher demand for wheat, rye and rapeseed, while the main sellers, corn and sugar beet seeds, first get planted in the spring. Accordingly, in the first quarter KWS on a multi-year average only books about 10 % of annual sales. This reporting period thus offers no indications on trends for the business year as a whole.

In Q1 2006-7, KWS again invested in tangible assets on a scale well above depreciation. The major individual projects are a drying plant corn seed in North America and a new logistics hall at its headquarters of Einbeck. The company expects growth to be stimulated above all in its corn segment, its stronger presence in international markets, and additional sales opportunities for renewable feedstocks for biodiesel and biogas generation.

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