Crop protection firm Adama reports third-quarter loss
TEL AVIV Nov 10 (Reuters) - Adama Agricultural Solutions, world's largest provider of generic crop-protection products, reported a third-quarter net loss on Tuesday after adverse currency effects, particularly in Brazil, lowered revenue and raised hedging costs.
Israel-based Adama's net loss of $4.6 million compared with a profit of $24 million a year earlier.
Revenue fell 8.6 percent to $696.1 million while excluding foreign currency effects revenue was up 9.5 percent.
Adama said it has taken steps to reduce the negative effects of the economic environment in Brazil, including a decision not to fulfil certain orders and partially limit sales in the country, thereby reducing its exposure to currency and credit risks.
"Notwithstanding the tough currency conditions and subdued crop protection market, we have been able to increase our market share globally," Chief Executive Chen Lichtenstein said.
China National Chemical Corp (ChemChina) owns 60 percent of Adama, with the rest held by Israel's Discount Investment Corp.
Adama, which makes copies of agrochemicals that have expired patents, said it is establishing a sales force in China, with direct sales expected to begin in early 2016. A new formulation and packaging plant in the city of Huai'an is expected to come on stream next year. (Reporting by Tova Cohen; editing by Jason Neely)
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