Hong Kong, China
April 20, 2016
Agria Corporation (NYSE: GRO) (the "Company" or "Agria") today commented on the impact to the South American operations of its subsidiary, PGG Wrightson ("PGW"), from widespread flooding in the Colonia region of Uruguay.
PGW experienced physical damage to offices and the machine processing room at its seed cleaning site near Rosario. The extent of damage will not be known until floodwaters recede, but the Company expects minimal physical damage and a manageable loss of seed. The Company noted that all staff was safely evacuated from the site before the flooding began.
Although no material financial impact is expected, the Company is closely monitoring the impact to soybean and sorghum grain yields throughout the country. Reduced yield could negatively impact farm income, affecting sales of seed for autumn re-grassing and other farm input products.
Alan Lai, Executive Chairman of the Company, commented, "Our first priority was the safe evacuation of our staff from the Rosario facility. Fortunately we do not expect any material financial impact from the immediate physical damage caused by the floods.
"While we are cautious about the broader impact on the autumn selling season, PGW's full year operating EBITDA expectations are unchanged. The flooding may pressure PGW's results in South America to the lower end of our expected range, but we continue to see strong results in Australia and New Zealand. With the exception of PGW Water, all of PGW's business segments there are performing as planned, sustaining our confidence in the outlook for the year."
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