BEIJING, Feb 25, 2008 (MARKET WIRE via COMTEX News Network) -- Agria Corporation (NYSE: GRO), an innovative China- based
agri-solutions provider, today announced that the Company expects
revenues for the fourth quarter of 2007 to reach the high-end of
prior guidance.
Prior guidance for revenues for the fourth quarter of 2007 was
between approximately RMB 238 million (US$ 31.8 million) and RMB 253
million (US$ 33.8 million), representing year-over-year growth in the
range of 60% to 70%, respectively, compared to RMB 149 million in the
fourth quarter of 2006. Growth was led by strong corn seed sales, as
the fourth quarter is typically the strongest period for this segment
due to the annual harvest and sales cycle.
Mr. Kenneth Huang, co-CEO, commented, "We are pleased with the
success in our business and continue to expect we will achieve annual
revenue growth above 25% in 2008 compared to 2007 based on current
order forecasts and market expectations. We expect to achieve this
growth despite the impact of snow storms in China in the first
quarter of 2008. The storms did not materially affect our operation
in Shanxi, did not cause any material increase in breeding sheep
deaths and should not impact our seedling business. The impact was
confined to transportation and shipment problems across China.
Overall, the weather is a short-term, macro issue. The opportunities
in front of us for revenue and profit growth remain vast."
Based on sales orders received, Agria now expects revenue in the
first quarter 2008 will be approximately 15% above the first quarter
of 2007, or approximately RMB 136 million (US$ 17.9 million). The
Company believes revenue growth would have been approximately 20%
higher than the year ago period without the impact of snow storms in
China. The first quarter is normally seasonally below the fourth
quarter for the industry.
About Agria Corporation
Agria Corporation (NYSE: GRO) is an innovative China-based
agri-solutions provider focusing on research and development,
production and distribution of three different types of upstream
agricultural products. Its diversified portfolio of products
comprises corn seeds, sheep breeding and seedlings, including
proprietary products developed through its own research and
development capability. The company has access to approximately
27,000 acres of farmland in seven provinces and its extensive
distribution network provides direct or third party distribution in
14 provinces. For more information about Agria Corporation, please
visit www.agriacorp.com.
Safe Harbor Statement
This announcement contains forward-looking statements. These
statements are made under the "safe harbor" provisions of the U.S.
Private Securities Litigation Reform Act of 1995. These
forward-looking statements can be identified by terminology such as
"will," "expects," "anticipates," "future," "intends," "plans,"
"believes," "estimates," "confident" and similar statements. Among
other things, the business outlook and quotations from management in
this announcement, as well as Agria Corporations strategic and
operational plans, contain forward-looking statements. Agria may
also make written or oral forward-looking statements in its periodic
reports to the U.S. Securities and Exchange Commission on Forms 20-F
and 6-K, etc., in its annual report to shareholders, in press releases
and other written materials and in oral statements made by its
officers, directors or employees to third parties. Statements that are
not historical facts, including statements about Agria's beliefs and
expectations, are forward-looking statements. Forward-looking
statements involve inherent risks and uncertainties. A number of
important factors could cause actual results to differ materially
from those contained in any forward-looking statement. Potential
risks and uncertainties include, but are not limited to, Agria's
limited operating history makes it difficult to evaluate our future
prospects and results of operations; natural or man-made disasters
could damage our seed production, which would cause us to suffer
production losses and a material reduction of our revenues; outbreaks
of disease in livestock and/or food scares in China would materially
and adversely affect our sheep breeding business; we primarily rely
on arrangements with village collectives to produce our corn seed
products, and if we are unable to continue these arrangements or
enter into new arrangements with other village collectives to
increase our production, our total land acreage devoted to corn seed
production may decrease and our growth may be inhibited; our growth
prospects may be materially and adversely affected if we are unable
to continue to develop or acquire products to meet the demands of
Chinese farmers or to produce our existing products in sufficient
quantities; and one or more of our distributors may engage in
activities that are harmful to our brand and to our business, and
other risks outlined in Agria's filings with the U.S. Securities and
Exchange Commission, including its Form F-1/A filed on November 2,
2007. All information provided in this press release is as of
February 25, 2008, and Agria does not undertake any obligation to
update any forward-looking statement, except as required under
applicable law.
Contacts:
In China:
Matt Feng
Investor Relations
China Tel: 86 13311300320
matt.feng@agriacorp.com
In the U.S.:
David Pasquale
Senior Vice President
U.S. Tel: +914-337-1117
david.pasquale@agriacorp.com