Nov. 5, 2018
Net sales of DowDuPont’s agriculture segment in the third quarter of 2018 was increased by 2 percent from pro forma net sales of $1.91 billion in the year-ago period to $1.95 billion, driven by both volume gains and higher local price in Latin America. Organic sales rose 11 percent, as volume rose 8 percent while local price grew 3 percent. Currency decreased sales 6 percent while portfolio subtracted 3 percent. Operating EBITDA improved by $135 million, to a seasonal loss of $104 million versus a pro forma operating EBITDA loss of $239 million in the prior-year period.
Volume growth primarily reflected new product launches including Picoxy-based disease management crop protection products, and seed applied technologies in Latin America; growth from Pyraxalt™, a new insecticide in Asia Pacific; and gains from corn seeds, partially driven by an early start to the selling season in Latin America. Price increases were driven by crop protection in Latin America amid currency pressures. The portfolio impact reflected inclusion of one month of the Brazil corn remedy in last year’s quarter.
Within the segment, Crop Protection sales of $1.4 billion, rose 10%, primarily due to new product launches (including Picoxy-based products in LA as well as Pyraxalt in AP), seed applied technologies in LA and improved inventory levels. Drove price increases to offset currency pressure. Crop Protection organic sales grew 17 percent and Seed organic sales increased 1 percent. Crop Protection growth reflected volume and price gains in Latin America and Asia Pacific, partly offset by volume declines in United States & Canada. Seed sales increased on volume growth, partially driven by an early start to the selling season in Latin America.
Operating EBITDA improvement reflected cost synergies, sales gains, lower performance based compensation and lower pension/OPEB costs, partly offset by higher raw material costs and increased spending to continue advancing the new product pipeline.
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