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Dow AgroSciences sales down 5% in Q1 2017
Apr. 28, 2017
Dow AgroSciences LLC
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United States
Dow reported its Agricultural Sciences segment (referred to as Dow AgroSciences) first quarter sales of $1,568 million, down 5 percent versus the year-ago period driven by a volume decline of 5 percent.
Crop Protection volume declined despite higher demand for insecticides in most geographic areas and continued adoption of Arylex™ broadleaf herbicide. These gains were more than offset by reduced demand primarily for herbicides and insecticides in Asia Pacific, driven by lower demand for rice herbicides in China where flooding during last year’s season led to high channel inventories that continued into this year. Robust insecticides growth was driven by new labels and registrations for spinetoram and spinosad, as well as strong demand in the EU on warmer weather.
Dow said in the Conference Call that they will address the resistance issue with the launch of Rinskor™ Active herbicide, which features an alternative mode of action. Rinskor™ will be launched in time for the next growing season.
Seed volumes declined primarily due to lower demand for corn seeds in North America on projected reduced acreage and lower demand for sunflower seed in EMEAI and Latin America. These factors were mostly offset by volume gains in corn in Latin America and in cotton in the United States, reflecting the successful launch of ENLIST™ cotton and early grower adoption.
Operating EBITDA was $351 million, down from $403 million in the year-ago period as a higher contribution from the Seeds business, driven by demand for ENLIST™ cotton and growth in corn in Latin America, was more than offset by lower volume in Crop Protection, particularly in Asia Pacific.
Equity losses for the segment were $1 million, compared to equity earnings of $7 million in the year-ago period.
“Looking ahead, our crop protection business – which represents about 70 percent of Dow Ag – has an industry-leading pipeline, with products including Isoclast™ insecticide to control sap-feeding pests and Rinskor™ herbicide to control grass, broadleaf and sedge weeds. Dow AgroSciences remains well-positioned to bring at least one new-to-the-world molecule to commercialization every year. We have included a review of the business’s innovation pipeline in the appendix, which highlights the breadth and depth of products that are still to come,” said Howard Ungerleider, Executive Vice Chairman and CFO of Dow Chemical.
Source: Dow AgroSciences News Release
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