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Record for DuPont in the first quarter 
Apr. 24, 2008
DuPont’s crop protection revenues rose “moderately” in the first quarter of 2008 to set a new quarterly sales record. Higher sales of agrochemicals and seed contributed to a 17.7% increase in revenues for the company’s agriculture and nutrition business to $2,883 million. Prices were up by 15% and volumes by 4%, with a 1% decline attributed to portfolio effects and other factors. Crop protection earnings rose “substantially” due to market demand for all major product sectors, DuPont says.
The company saw particularly strong growth in the emerging markets of central and eastern Europe. In Latin America, increased plantings of sugar cane and maize drove insecticide volume gains and higher prices in the key markets of Brazil and Argentina. Profit margins increased due to an improved range of sulfonylurea herbicides, higher prices, currency effects and productivity savings.
Sales of DuPont’s newest insecticide, Rynaxypyr (chlorantraniliprole), got off to “a strong start”, with 2008 being the first full-year of sales. The company introduced the insecticide in the Philippines, Indonesia and Romania last year. It received Canadian approval this month, with a US registration expected shortly.
DuPont’s seed subsidiary, Pioneer Hi-Bred International, recorded a 19% rise in sales to some $1,800 million during the first quarter. North American maize seed sales were lower than in the same period last year, reflecting the smaller acreage. However, Pioneer expects to hold its maize seed market share at 30%. The company’s international seed business continued to do well, with record maize and higher sunflower seed sales in Europe. Higher maize seed volumes in Latin America boosted revenues there. Pioneer’s earnings grew “substantially”, reflecting margin and productivity improvements, DuPont says.
DuPont’s agriculture and nutrition business posted a 20.7% increase in pre-tax operating income (PTOI) to $786 million in the first three months of the year. The business benefited from strong sales in Europe, North America and Latin America, currency and pricing effects, and cost productivity gains. However, earnings were impacted by increased investment in research and development.
The company forecasts “low double-digit” sales and earnings growth for the agriculture and nutrition segment in the second quarter of 2008. First-half earnings growth is expected to reach “the mid-teens”. The company expects to incur growing regulatory costs for its Herculex, Optimum GAT and Optimum AcreMax range of genetically modified maize. However, the business is on track to deliver more than 15% growth in PTOI between 2008 and 2010, the company says.
Source: DuPont
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