Strong growth from new products, operating profits and improved working capital in Q3 2010

Company announcement no. 10/2010
November 10, 2010


In Q3 2010, continued strong growth from new products generated operating
profits despite difficult market conditions and considerably lower sales of
glyphosate. Revenue for the first nine months of the year is on a par with the
prior-year period, while earnings have improved considerably. Working capital
was improved in Q3 2010 leading to a reduction in debt. The outlook for revenue
and earnings for the year is downgraded as a result of lower foreign exchange
rates than expected after the first half, increased price pressure and the late
start to the season in Brazil. 


PRESIDENT & CEO KURT PEDERSEN KAALUND COMMENTS ON THE DEVELOPMENT:
"Growth from new products continues at a rate of 22% this year, while sales of
glyphosate is reduced to 15% of revenue. Working capital has improved in Q3
leading to an initiated reduction in debt. Outlook for revenue and earnings for
the year is downgraded compared to earlier - however, the results for the year
will be considerably improved compared to last year." 


HIGHLIGHTS IN Q3 2010     
* Revenue in Q3 2010 was up 14%, and Auriga's revenue for the first nine months
of the year totalled DKK 4,180 million (DKK 4,190 million), which is on a par
with last year. Operating profit before amortisation and depreciation (EBITDA)
was DKK 292 million (DKK 201 million), corresponding to an EBITDA margin of 7%
(5%). Operating profit (EBIT) was DKK 153 million (DKK 57 million)
corresponding to an EBIT margin of 4% (1%). Profit before tax was DKK 47
million (DKK -22 million). 

* Cheminova's new products account for an increasing share of revenue and
earnings, and sales grew by 33% in Q3 2010 compared to the prior-year period.
The importance of glyphosate has been significantly reduced, accounting for 15%
of revenue. 

* Working capital was reduced considerably in Q3 2010, and a positive cash flow
from operating activities of DKK 205 million (DKK 277 million) was returned. A
reduction in net interest-bearing debt has been initiated with a reduction in
Q3 of DKK 169 million. 


OUTLOOK 2010
Despite a positive outlook for the industry, e.g. with high agricultural crop
prices and continued strong growth from new products, the outlook for revenue
and earnings for the year is downgraded. The main reasons for this are a number
of lower foreign exchange rates, e.g. BRL, USD and INR, than expected after the
first half, increased price pressure especially in Brazil and a somewhat
delayed start to the season in Brazil. Hence, the development for the rest of
the year is subject to considerable uncertainty. Auriga expects revenue to be
on a par with 2009, i.e. to the order of DKK 5,400 million against an earlier
outlook of approx. DKK 5,600 million and an operating profit of DKK 200-275
million (DKK 11 million) against an earlier outlook of DKK 300-400 million.
Cash flow from operating activities is unchanged expected to be not below DKK
300 million for the year. 


PRESENTATION OF FINANCIAL HIGHLIGHTS
President & CEO Kurt Pedersen Kaalund and Vice President Jens Ole Jensen will
present the financial highlights at a teleconference for analysts and
institutional investors today, November 10, 2010, at 3 pm (CET). The
presentation will be transmitted live as audiowebcast including teleconference
via the internet. You can follow the audiowebcast and teleconference on
auriga.dk and auriga-industries.com, where the related presentation will be
available approx. 30 minutes beforehand. Presentation and teleconference will
be conducted in English. 


TELECONFERENCE
Participants in the teleconference are kindly requested to call in before 2:55
pm (CET) on tel. 32 71 47 67 (Danish participants) and tel. +44 207 509 5139
(international participants). An indexed version of the audiowebcast and
teleconference will be available on the websites afterwards. 


MORE INFORMATION ABOUT THE FINANCIAL STATEMENTS
Kurt Pedersen Kaalund, President & CEO
Jens Ole Jensen, Vice President
Tel. +45 70 10 70 30 - investor@auriga.dk