DGAP-News

KWS SAAT AG: KWS grows in all segments and raises guidance for 2011/2012

DGAP-News: KWS SAAT AG / Key word(s): Half Year Results
KWS SAAT AG: KWS grows in all segments and raises guidance for
2011/2012

24.02.2012 / 07:30

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Einbeck, February 24, 2012
No. 7 | gf

KWS grows in all segments and raises guidance for 2011/2012
Cereals and corn business better than planned - KWS Group expected to grow
net sales by around 10% - Workforce growing in Germany and abroad

KWS SAAT AG (ISIN: DE0007074007), one of the world´s leading seed
companies, grew across all segments in the first six months of fiscal
2011/2012 (ending June 30). Boosted by strong cereals and corn business,
net sales rose by 27% to EUR191.5 (previous year: 151.1) million. Operating
income (EBIT) rose year on year by EUR8.4 million to
EUR -31.2 (EUR -39.6) million, a figure affected by the fact that
substantive sales activities in the main business segments corn and
sugarbeet do not begin until spring. The net sales figure of the KWS Group
in the first half of the fiscal year is only about a fifth of the annual
total; income in the first six months thus primarily reflects costs.

Cereals Segment surpasses previous year´s net sales in the first half
On the back of strong demand in hybrid rye business and the sharp rise in
sales in Poland, net sales in the Cereals Segment rose to EUR78.1 (63.7)
million and have thus already surpassed the figure for the whole of
2010/2011. Sales of winter cereal varieties matched the high level of the
previous year. Overall, the continuing good level of prices for cereals for
consumption had a positive impact on the segment´s net sales.

Demand for corn unbroken - Sugarbeet Segment stable
Net corn sales were better than expected, rising by almost 34% to EUR71.5
(53.5) million on the back of growth in the key markets of North America,
France and Germany. Net sales in the Sugarbeet Segment increased by 22% to
EUR37.2 (30.6) million. Particularly customers from the Netherlands and
Russia purchased seed earlier than usual.

KWS hires new employees and increases capital expenditure
To secure the company´s long-term growth, KWS is hiring additional
employees in Germany and abroad. In the first six months, the number of
employees increased to 3,885 (3,561). The company is also staying with its
investment policy. In the period under review capital expenditure was
increased to EUR26.9 (20.2) million, well above depreciation at EUR10.9
(10.2) million. The funds were used in part to acquire new breeding areas
and buildings for the potato business in the Netherlands and to expand
production capacities in Argentina.

Outlook: Forecast for the year raised slightly
Since cereals and corn business is above expectations, the KWS Group´s net
sales and income guidance needs to be revised. ´Due to our performance in
the first half of the fiscal year, we are raising our forecast for net
sales slightly to around EUR940 (previously 910) million. The EBIT margin
is expected to be almost 12%, ´ said Hagen Duenbostel, Chief Financial
Officer of KWS SAAT AG.

Contact:
Georg Folttmann
Head of Investor Relations
Phone: [phone]
Fax: [phone]
E-mail: [e-mail]

KWS SAAT AG
Grimsehlstraße 31
37555 Einbeck
www.kws.com

End of Corporate News

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24.02.2012 Dissemination of a Corporate News, transmitted by DGAP - a
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Language:    English                                                     
Company:     KWS SAAT AG                                                 
             Grimsehlstraße 31                                           
             37555 Einbeck                                               
             Germany                                                     
Phone:       [phone]                                           
Fax:         [phone]                                         
E-mail:      [e-mail]                                                
Internet:    www.kws.de                                                  
ISIN:        DE0007074007                                                
WKN:         707400                                                      
Listed:      Regulierter Markt in Frankfurt (Prime Standard), Hannover;  
             Freiverkehr in Berlin, Düsseldorf, Hamburg, München,         
             Stuttgart                                                   

End of News    DGAP News-Service  

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157919 24.02.2012