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Dow AgroSciences sale up 3% in Q2 2017
Jul. 28, 2017
Dow AgroSciences LLC
United StatesFollow
United StatesDow Chemical’s Agricultural Sciences segment was reported second quarter sales of $1.6 billion, up 3% year-over-year, driven by a double-digit increase in the Seeds business. Volume increased 6%, with gains in both Seeds and Crop Protection businesses, while price declined 3%.
Seeds volume rose double-digits, primarily due to increased demand for POWERCORE® corn seeds in Latin America as well as higher demand for cotton seeds in North America, including the highly successful launch of ENLIST™ cotton. In the quarter, the business also received the necessary import approvals to allow for the full commercial launch of ENLIST™ corn seeds in the U.S. and Canada for the 2018 growing season.
Crop Protection volume increased on higher demand for herbicides and insecticides, which more than offset lower demand for fungicides. The business also benefited from the ENLIST™ cotton seeds launch through the increased, accompanying sales of ENLIST DUO® herbicide. The business reported robust growth for its new crop protection chemicals and formulations: sales of ARYLEX™ broadleaf herbicide nearly doubled year-over-year; ISOCLAST™ insecticide resumed its momentum in the marketplace after achieving key regulatory milestones; and new corn herbicide formulations gained traction in North America. Dow continues to see soft demand for rice herbicides in China on generic pressure and high channel inventories.
Operating EBITDA was $326 million, up from $232 million in the year-ago period, driven by robust demand for the business’s novel Seeds and Crop Protection technologies and benefits from lower operating costs primarily driven by productivity actions.
Equity losses for the segment were $7 million, compared to equity losses of $11 million in the year-ago period.
Outlook
Commenting on the Company’s outlook, Liveris said: “Global economic activity is increasing, with notable strength in manufacturing, investment and trade. Robust growth fundamentals continue to fuel expansion in the U.S., led by the strength of the consumer. Europe’s improvement is expected to remain on a steady path. Latin America is stabilizing with particular upside from its agriculture sector, and Brazil is showing early signs of recovery from a prolonged recession, though political uncertainty persists.”
“Looking forward, our team remains focused and disciplined, with a sharp execution mindset on the successful close of our merger with DuPont, rapid achievement of the synergies and realizing the value-creation of the intended companies, as well as a strong focus on delivering the materials science company, with a portfolio that will be unrivaled versus its peer group. Going into the merger close, Dow is coming from a position of incredible strength, with a proven track record of success. We have the right strategy, the right long-term growth drivers and the right portfolio. Dow has never been better positioned to continue delivering for our customers, employees, communities and shareholders.”
Source: Dow AgroSciences News Release
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