Dow’ agrochem business sales up 27% in Q3

Date:10-28-2011

Dow Chemical’s Agricultural Sciences reported record third quarter sales of $1.205 billion, up 27% compared with the year-ago period. Volume increased 18% and price rose 9%. EBITDA for the segment was $75 million, compared with a loss of $12 million in the year-ago period. Sales for the first nine months of the year were up by 20% to $ 4,311 million compared with the same period of last year.

Double-digit sales and volume gains were reported in all geographic areas, led by Latin America. The business continues to benefit from solid industry fundamentals, with elevated farm income levels providing strong incentive for farmers to maximize yields.

Agricultural Chemicals reported demand growth of more than 20% driven by continued adoption of new products and increased sales of range and pasture herbicides in Latin America, cereal herbicides in Europe, and corn and soybean herbicides in the United States.

In Seeds, Traits and Oils, corn seed volume grew more than 15% versus the same period last year.

Year to date, Seeds, Traits and Oils has reported demand growth of more than 25%, with significant gains in key crops, including corn and cotton. The business finished a solid cotton season in the United States, having grown 10 share points over the last two seasons to nearly 20% in 2011, helped by an increase in U.S. planted acres and continued penetration of PhytoGen cottonseeds. In corn, the business continued to report good adoption of SmartStax hybrids in North America.

Dow’s Agricultural Sciences sales results ($ million)
Q3 ended Sept. 30th	2011	2010	% change
sales	1,205	948	+ 27
EBITDA*	75	-12	-
Nine months
sales	4,311	3,593	+20
EBITDA*	768	568	+35.2
* earnings before interest, tax, depreciation and amortization