Sumitomo reverses write-down on Nufarm
Sumitomo Chemical has reversed its one-time write-down related to its investment in Nufarm, citing a recovery in the Australian company’s share value. Sumitomo, which owns a 20% stake, made the write-down for the nine months ended December 31st 2010 after Nufarm was hit by falling prices for the herbicide, glyphosate, and adverse weather conditions ( Agrow No 604, p 3). However, Nufarm’s sales and profits have recovered due to strong Australasian sales, restructuring in Brazil, and an absence of expensive glyphosate inventories ( Agrow No 613, p 6). Sumitomo says that it will recognise a gain on the reversal of the write-down for the three months ending March 31st 2011. Over the last year, the two companies have agreed distribution deals covering several countries, and recently signed a product development deal ( Agrow No 612, p 4).