FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
Report of Foreign Issuer

Pursuant to Rule 13a-16 or 15d-16
of the Securities Exchange Act of 1934


For the month of June 2012

Commission File Number: 001-15152


SYNGENTA AG
(Translation of registrant’s name into English)

Schwarzwaldallee 215
4058 Basel
Switzerland
(Address of principal executive offices)


Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:

Form 20-F
X
 
Form 40-F
 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):

Yes
   
No
X

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):

Yes
   
No
X

Indicate by check mark whether by furnishing the information contained in this Form, the Registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934:

Yes
   
No
X

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): N/A
 


 
 
 
 

 
Re: 
SYNGENTA AG
Disclosure:
New segment reporting

Herewith we furnish a press release related to Syngenta AG. The full text of the press release is the following:

# # #
 
 
 
 

 

Syngenta International AG
 
Media Office
CH-4002 Basel
Switzerland
Tel:  +41 61 323 23 23
Fax: +41 61 323 24 24
 
 
www.syngenta.com
Media contact:
 
Daniel Braxton
Switzerland +41 61 323 2323
 
 
 
Analyst / Investor contact:
 
Jennifer Gough
Switzerland +41 61 323 5059
USA +1 202 737 6521
 

 
Basel, Switzerland, June 26, 2012
 
 
New segment reporting
 
 
As announced in February, Syngenta will adopt new segment reporting of sales and profitability starting with the first half 2012 results, to be announced on July 26.  The new segments reflect the company’s integrated strategy and align reporting with previously announced changes in management structure.  As such, segment reporting is based on the four geographic regions, with the exception of the global Lawn and Garden business which is reported separately.
 
This press release provides restated figures for the first half of 2011 and the full years 2011 and 2010.  In addition, 2011 quarterly sales performance is reported in line with the new segment structure.  Group earnings are unaffected by the restatement.
 
Reclassification of certain expenses
 
·  
The boundary between Marketing and distribution / Research and development expenses has been redefined.  Syngenta’s global Research and development organization now manages all field trial sites and activities worldwide, including those related to maintaining product registrations.
 
·  
In order to maximize cost efficiency, the provision of support services in Finance, Information Systems, Human Resources and Indirect Procurement has been centralized through Syngenta Business Services.  The allocation of these costs by expense line has changed to reflect the usage of the services.  The allocation of costs for these services at a regional level is based on the level of transactional activity in revenues and costs, with revenue-related charges included in Marketing and distribution.
 
·  
Some costs of the integrated organization do not relate to a geographic destination and are reported as non-regional.  These include global marketing teams, Research and development and corporate headquarter functions.  In addition, regional gross profit performance is based on budgeted product costs: variances to the budget are reported as non-regional in order to align the reported results with organizational accountability.
 
These reclassifications have no impact on consolidated operating income or on consolidated income before taxes.
 
 
Syngenta  June 26, 2012 / Page 1 of 9

 
 
New Segmental Results
 
For the six months ended June 30, 2011
(US$ million)
 
EAME(1)
   
North America
   
Latin America
   
Asia Pacific
   
Non-regional
   
Total
   
Lawn and Garden(2)
   
Total group
 
Segment sales
    2,924       2,251       1,032       1,026       -       7,233       469       7,702  
Cost of goods sold
    (1,309 )     (1,145 )     (557 )     (537 )     (19 )     (3,567 )     (242 )     (3,809 )
Gross profit
    1,615       1,106       475       489       (19 )     3,666       227       3,893  
Marketing and distribution
    (349 )     (287 )     (229 )     (147 )     (45 )     (1,057 )     (115 )     (1,172 )
Research and development
    -       -       -       -       (564 )     (564 )     (28 )     (592 )
General and administrative
    (78 )     (49 )     (45 )     (25 )     (50 )     (247 )     (33 )     (280 )
Restructuring and impairment
    (10 )     (11 )     (5 )     (3 )     34       5       (24 )     (19 )
Operating income/(loss)
    1,178       759       196       314       (644 )     1,803       27       1,830  
 
 
For the year ended December 31, 2011
(US$ million)
 
EAME(1)
   
North America
   
Latin America
   
Asia Pacific
   
Non-regional
   
Total
   
Lawn and Garden(2)
   
Total group
 
Segment sales
    3,982       3,273       3,305       1,887       -       12,447       821       13,268  
Cost of goods sold
    (1,806 )     (1,648 )     (1,813 )     (984 )     (131 )     (6,382 )     (404 )     (6,786 )
Gross profit
    2,176       1,625       1,492       903       (131 )     6,065       417       6,482  
Marketing and distribution
    (685 )     (554 )     (542 )     (290 )     (89 )     (2,160 )     (227 )     (2,387 )
Research and development
    -       -       -       -       (1,135 )     (1,135 )     (56 )     (1,191 )
General and administrative
    (166 )     (114 )     (77 )     (48 )     (155 )     (560 )     (62 )     (622 )
Restructuring and impairment
    (88 )     (25 )     (23 )     (13 )     (29 )     (178 )     (53 )     (231 )
Operating income/(loss)
    1,237       932       850       552       (1,539 )     2,032       19       2,051  
 
 
For the year ended December 31, 2010
(US$ million)
 
EAME(1)
   
North America
   
Latin America
   
Asia Pacific
   
Non-regional
   
Total
   
Lawn and Garden(2)
   
Total group
 
Segment sales
    3,423       2,969       2,763       1,707       -       10,862       779       11,641  
Cost of goods sold
    (1,568 )     (1,571 )     (1,578 )     (909 )     116       (5,510 )     (390 )     (5,900 )
Gross profit
    1,855       1,398       1,185       798       116       5,352       389       5,741  
Marketing and distribution
    (623 )     (548 )     (378 )     (267 )     (71 )     (1,887 )     (208 )     (2,095 )
Research and development
    -       -       -       -       (1,024 )     (1,024 )     (57 )     (1,081 )
General and administrative
    (153 )     (121 )     (72 )     (39 )     (174 )     (559 )     (54 )     (613 )
Restructuring and impairment
    (64 )     (1 )     (12 )     (5 )     (57 )     (139 )     (20 )     (159 )
Operating income/(loss)
    1,015       728       723       487       (1,210 )     1,743       50       1,793  
 
(1)
EAME: Europe, Africa and Middle East
 
(2)
The supply of chemical active ingredient to Lanxess AG for the materials protection market, previously reported as part of Professional Products, has been integrated into the geographical segments.  This reflects Syngenta’s divestment of the materials protection business to Lanxess AG in 2011
 
 
Syngenta – June 26, 2012 / Page 2 of 9

 
 
New Segmental Results excluding Restructuring and Impairment
 
Syngenta
(US$ million)
 
June
 2011
   
December
2011
   
December
2010
 
Third party sales
    7,702       13,268       11,641  
Gross profit
    3,899       6,496       5,759  
Marketing and distribution
    (1,172 )     (2,387 )     (2,095 )
Research and development
    (592 )     (1,191 )     (1,081 )
General and administrative
    (280 )     (622 )     (613 )
Operating income
    1,855       2,296       1,970  
Depreciation, amortization and impairment
    294       594       509  
Income from associates and joint ventures
    -       15       26  
EBITDA
    2,149       2,905       2,505  
EBITDA (%)
    27.9       21.9       21.5  
 
 
   
Total(1)
   
Lawn and Garden
 
(US$ million)
 
June
2011
   
December 2011
   
December
2010
   
June
2011
   
December 2011
   
December
2010
 
Third party sales
    7,233       12,447       10,862       469       821       779  
Gross profit
    3,672       6,079       5,359       227       417       400  
Marketing and distribution
    (1,057 )     (2,160 )     (1,887 )     (115 )     (227 )     (208 )
Research and development
    (564 )     (1,135 )     (1,024 )     (28 )     (56 )     (57 )
General and administrative
    (247 )     (560 )     (559 )     (33 )     (62 )     (54 )
Operating income
    1,804       2,224       1,889       51       72       81  
Depreciation,
amortization and impairment
    279       563       477       15       31       32  
Income from
associates and joint ventures
    -       15       26       -       -       -  
EBITDA
    2,083       2,802       2,392       66       103       113  
EBITDA (%)
    28.8       22.5       22.0       14.1       12.5       14.5  
 
(1)
Total excludes Lawn and Garden and includes non-regional
 
 
Syngenta – June 26, 2012 / Page 3 of 9

 
 
New Segmental Results excluding Restructuring and Impairment: continued
 
   
Europe, Africa and Middle East
   
North America
 
(US$ million)
 
June
2011
   
December 2011
   
December
2010
   
June
2011
   
December 2011
   
December
2010
 
Third party sales
    2,924       3,982       3,423       2,251       3,273       2,969  
Gross profit
    1,620       2,184       1,855       1,107       1,631       1,401  
Marketing and distribution
    (349 )     (685 )     (623 )     (287 )     (554 )     (548 )
Research and development
    -       -       -       -       -       -  
General and administrative
    (78 )     (166 )     (153 )     (49 )     (114 )     (121 )
Operating income
    1,193       1,333       1,079       771       963       732  
             
   
Latin America
   
Asia Pacific
 
(US$ million)
 
June
2011
   
December 2011
   
December
2010
   
June
2011
   
December 2011
   
December
2010
 
Third party sales
    1,032       3,305       2,763       1,026       1,887       1,707  
Gross profit
    475       1,492       1,189       489       903       798  
Marketing and distribution
    (229 )     (542 )     (378 )     (147 )     (290 )     (267 )
Research and development
    -       -       -       -       -       -  
General and administrative
    (45 )     (77 )     (72 )     (25 )     (48 )     (39 )
Operating income
    201       873       739       317       565       492  

 
Syngenta – June 26, 2012 / Page 4 of 9

 
 
New Segmental Operating Income reconciled to New Segmental Results excluding Restructuring and Impairment
 
                                                 
For the six months ended June 30, 2011
(US$ million)
 
EAME(1)
   
North America
   
Latin America
   
Asia Pacific
   
Non-regional
   
Total
   
Lawn and Garden
   
Total group
 
Operating income/(loss)
    1,178       759       196       314       (644 )     1,803       27       1,830  
Restructuring and impairment:
                                                               
Cost of goods sold(2)
    5       1       -       -       -       6       -       6  
Expenses
    10       11       5       3       (34 )     (5 )     24       19  
Operating income excluding restructuring and impairment
    1,193       771       201       317       (678 )     1,804       51       1,855  
Operating margin (%)
    40.8       34.3       19.5       30.9       n/a       24.9       10.9       24.1  
 
 
For the year ended December 31, 2011
(US$ million)
 
EAME(1)
   
North America
   
Latin America
   
Asia Pacific
   
Non-regional
   
Total
   
Lawn and Garden
   
Total group
 
Operating income/(loss)
    1,237       932       850       552       (1,539 )     2,032       19       2,051  
Restructuring and impairment:
                                                               
Cost of goods sold(2)
    8       6       -       -       -       14       -       14  
Expenses
    88       25       23       13       29       178       53       231  
Operating income excluding restructuring and impairment
    1,333       963       873       565       (1,510 )     2,224       72       2,296  
Operating margin (%)
    33.5       29.4       26.4       29.9       n/a       17.9       8.8       17.3  
 
 
For the year ended December 31, 2010
(US$ million)
 
EAME(1)
   
North America
   
Latin America
   
Asia Pacific
   
Non-regional
   
Total
   
Lawn and Garden
   
Total group
 
Operating income/(loss)
    1,015       728       723       487       (1,210 )     1,743       50       1,793  
Restructuring and impairment:
                                                               
Cost of goods sold(2)
    -       3       4       -       -       7       11       18  
Expenses
    64       1       12       5       57       139       20       159  
Operating income excluding restructuring and impairment
    1,079       732       739       492       (1,153 )     1,889       81       1,970  
Operating margin (%)
    31.5       24.7       26.7       28.8       n/a       17.4       10.4       16.9  
 
(1)
EAME: Europe, Africa and Middle East
 
(2)
Reversal of inventory step-up
 
 
Syngenta – June 26, 2012 / Page 5 of 9

 

 
2011 Quarterly Sales Performance
 
Integrated sales
(US$ million)
   
Q1
 2011
     
Q2
 2011
     
Q3
 2011
     
Q4
 2011
     
H1
 2011
     
H2
 2011
   
FY
2011
 
Europe, Africa and Middle East
    1,597       1,327       644       414       2,924       1,058       3,982  
North America
    1,125       1,126       484       538       2,251       1,022       3,273  
Latin America
    516       516       949       1,324       1,032       2,273       3,305  
Asia Pacific
    522       504       418       443       1,026       861       1,887  
Total
    3,760       3,473       2,495       2,719       7,233       5,214       12,447  
Lawn and Garden(1)
    257       212       168       184       469       352       821  
Group Sales
    4,017       3,685       2,663       2,903       7,702       5,566       13,268  
                                                         
Sales by business
                                                       
Crop Protection
    2,669       2,714       2,075       2,219       5,383       4,294       9,677  
Seeds
    1,108       767       433       542       1,875       975       2,850  
Elimination of Crop Protection sales to Seeds
    (17 )     (8 )     (13 )     (42 )     (25 )     (55 )     (80 )
Total
    3,760       3,473       2,495       2,719       7,233       5,214       12,447  
Lawn and Garden(1)
    257       212       168       184       469       352       821  
Group Sales
    4,017       3,685       2,663       2,903       7,702       5,566       13,268  
                                                         
Crop Protection regional sales
                                                       
Europe, Africa and Middle East
    1,084       1,009       511       354       2,093       865       2,958  
North America
    634       813       425       286       1,447       711       2,158  
Latin America
    464       470       765       1,208       934       1,973       2,907  
Asia Pacific
    487       422       374       371       909       745       1,654  
Total
    2,669       2,714       2,075       2,219       5,383       4,294       9,677  
                                                         
Seeds regional sales
                                                       
Europe, Africa and Middle East
    522       320       135       86       842       221       1,063  
North America
    497       313       66       266       810       332       1,142  
Latin America
    53       51       187       118       104       305       409  
Asia Pacific
    36       83       45       72       119       117       236  
Total
    1,108       767       433       542       1,875       975       2,850  
 
(1)  
Includes product lines Professional Products and Flowers. Professional Products were formerly reported under Crop Protection and Flowers under Seeds
 
 
Syngenta – June 26, 2012 / Page 6 of 9

 
 
2011 Quarterly Sales Performance: continued
 
Product line sales
(US$ million)
   
Q1
 2011
     
Q2
 2011
     
Q3
 2011
     
Q4
 2011
     
H1
 2011
     
H2
 2011
   
FY
2011
 
Selective Herbicides
    827       920       453       417       1,747       870       2,617  
Non-selective Herbicides
    250       315       321       231       565       552       1,117  
Fungicides
    881       848       565       704       1,729       1,269       2,998  
Insecticides
    430       428       436       496       858       932       1,790  
Seed Care
    257       173       256       332       430       588       1,018  
Other Crop Protection
    24       30       44       39       54       83       137  
Total Crop Protection
    2,669       2,714       2,075       2,219       5,383       4,294       9,677  
Corn and Soybean
    634       328       175       334       962       509       1,471  
Diverse Field Crops
    297       218       84       77       515       161       676  
Vegetables
    177       221       174       131       398       305       703  
Total Seeds
    1,108       767       433       542       1,875       975       2,850  
Elimination of Crop Protection sales to Seeds
    (17 )     (8 )     (13 )     (42 )     (25 )     (55 )     (80 )
Lawn and Garden(1)
    257       212       168       184       469       352       821  
Group Sales
    4,017       3,685       2,663       2,903       7,702       5,566       13,268  
 
(1)  
Includes product lines Professional Products and Flowers. Professional Products were formerly reported under Crop Protection and Flowers under Seeds
 
 
Syngenta – June 26, 2012 / Page 7 of 9

 

 
Reclassified Condensed Consolidated Income Statements
 
For the six months ended June 30,
(US$ million)
 
2011
 as reported
   
Research and development
   
Syngenta
Business Services
   
2011
reclassified
 
Sales
    7,702                   7,702  
Cost of goods sold
    (3,785 )           (24 )     (3,809 )
Gross profit
    3,917       -       (24 )     3,893  
Marketing and distribution
    (1,052 )     39       (159 )     (1,172 )
Research and development
    (559 )     (39 )     6       (592 )
General and administrative
    (457 )             177       (280 )
Restructuring and impairment
    (19 )                     (19 )
Operating income
    1,830       -       -       1,830  
 

 
For the year ended December 31,
(US$ million)
 
2011
as reported
   
Research and development
   
Syngenta
Business Services
   
2011
reclassified
 
Sales
    13,268                   13,268  
Cost of goods sold
    (6,737 )           (49 )     (6,786 )
Gross profit
    6,531       -       (49 )     6,482  
Marketing and distribution
    (2,145 )     76       (318 )     (2,387 )
Research and development
    (1,127 )     (76 )     12       (1,191 )
General and administrative
    (977 )             355       (622 )
Restructuring and impairment
    (231 )                     (231 )
Operating income
    2,051       -       -       2,051  
 

 
For the year ended December 31,
(US$ million)
 
2010
 as reported
   
Research and development
   
Syngenta
Business Services
   
2010
reclassified
 
Sales
    11,641                   11,641  
Cost of goods sold
    (5,866 )           (34 )     (5,900 )
Gross profit
    5,775       -       (34 )     5,741  
Marketing and distribution
    (1,892 )     66       (269 )     (2,095 )
Research and development
    (1,032 )     (66 )     17       (1,081 )
General and administrative
    (899 )             286       (613 )
Restructuring and impairment
    (159 )                     (159 )
Operating income
    1,793       -       -       1,793  

 
Syngenta – June 26, 2012 / Page 8 of 9

 

 
Announcements and Meetings
 
First half results 2012
July 26, 2012
Crop update
September 24-26, 2012
Third quarter trading statement 2012
October 23, 2012
Full year results 2012
February 06, 2013
First quarter trading statement 2013
April 18, 2013
 

 
 
Syngenta is one of the world's leading companies with more than 26,000 employees in over 90 countries dedicated to our purpose: Bringing plant potential to life.  Through world-class science, global reach and commitment to our customers we help to increase crop productivity, protect the environment and improve health and quality of life.  For more information about us please go to www.syngenta.com.

 
Cautionary Statement Regarding Forward-Looking Statements
 
This document contains forward-looking statements, which can be identified by terminology such as ‘expect’, ‘would’, ‘will’, ‘potential’, ‘plans’, ‘prospects’, ‘estimated’, ‘aiming’, ‘on track’ and similar expressions. Such statements may be subject to risks and uncertainties that could cause the actual results to differ materially from these statements. We refer you to Syngenta's publicly available filings with the U.S. Securities and Exchange Commission for information about these and other risks and uncertainties. Syngenta assumes no obligation to update forward-looking statements to reflect actual results, changed assumptions or other factors. This document does not constitute, or form part of, any offer or invitation to sell or issue, or any solicitation of any offer, to purchase or subscribe for any ordinary shares in Syngenta AG, or Syngenta ADSs, nor shall it form the basis of, or be relied on in connection with, any contract there for.
 
 
 
Syngenta – June 26, 2012 / Page 9 of 9

 

 
   
SYNGENTA AG
 
       
       
Date:
June 26, 2012
 
By:
/s/ Tobias Meili  
       
Name:
Dr. Tobias Meili
 
       
Title:
Head Corporate Legal Affairs
 
             
             
             
             
             
             
             
             
     
By:
/s/ Brigitte Benz  
       
Name:
Brigitte Benz
 
         
Head Shareholder Services &
Group Administration