Dow AgroSciencesQ4 profit rose to $72 million

Date:02-07-2011

Indianapolis-based Dow AgroSciences LLC, a unit of Dow Chemical Co. (NYSE: DOW), is reporting its fourth quarter profit rose to $72 million from $69 million a year ago. The company says sales were a record $1.3 billion, up 19 percent.

Health and Agricultural Sciences had record fourth quarter sales of $1.3 billion, up 19 percent compared with the year-ago period. Volume increased 20 percent, with price down 1 percent. All geographic areas reported double-digit volume growth versus the same period last year.

Agricultural chemical sales growth was led by Latin America, with 26 percent growth in the peak selling quarter. The region抯 growth came from strong range and pasture sales, the introduction of new formulations, and a return to normal weather in Argentina following drought conditions in the prior year. New products supported 13 percent sales growth in agricultural chemicals in North America. Asia Pacific benefited from new product sales across the region, and heavy rain in Australia drove strong demand for fungicides. Globally, agricultural chemical new product sales were up 24 percent versus the same quarter last year, and up 35 percent for the full-year, exceeding the original goal of reaching $400 million in revenue from new molecules in the year.

Seeds, Traits and Oils posted 32 percent sales gains driven by growth in corn and cotton. The positive performance of new SmartStax?hybrids in North America and a shift in Latin America toward greater use of HerculexTM insect protection drove increased volume growth for corn. Cotton continued to experience strong sales growth with the success of WidestrikeTM insect protection, while the canola business delivered double-digit gains due to higher sales of NexeraTM seeds.

EBITDA for the segment was $72 million, which compares with $69 million in the year-ago period. Full-year EBITDA of $640 million includes more than $125 million in investments for growth.