Jiangshan Nantong predicts 95% drop in first-half profits
Chinese company Jiangshan Nantong Agrochemical and Chemical expects net profits in the first six months of 2009 to have fallen by “over 95%” on last year's figure. The estimate is based on the company’s preliminary calculations. Jiangshan Nantong posted net profits of Yuan 207.9 million ($30.5 million at the current rate) in the first half of 2008. Agrochemicals accounted for 57.3% of the company’s total sales of Yuan 1,826.1 million ($267.5 million) for the whole of 2008 ( Agrow No 564, p 7). The company attributes the expected fall in profits to market factors, primarily the large drop in the price of the herbicide, glyphosate, over the past year. Glyphosate sales accounted for 84.7% of Nantong Jiangshan's agrochemical revenues last year, with sales for the year more than doubling ( Agrow ibid).