DuPont sales up 14% in Q1 2013

Date:04-25-2013

Sales of DuPont’s agriculture segment, including crop protection and seed business, were up by14.4% to $4.7 billion versus the same period of last year in the first quarter of 2013 which ended Mar 31, driven by both volume (up 8%) as well as pricing (up 6%) gains..

Operating earnings of DuPont’s agriculture segment rose by 13.3% to $1.5 billion due to on higher volume and price, partially offset by higher seed input costs which pressured margin slightly. Earnings improvement was driven by a 14 percent increase in sales reflecting strong corn seed sales in North America and Brazil and strong crop protection volumes in North America and Latin America.Pre-tax operating income rose by 15% to $1.5 billion compared with the same period of previous year.

More than three-fourths of the agricultural products division’s revenues came from the sale of seeds driven primarily by increased adoption of Pioneer’s AcreMax integrated and reduced refuge products. According to the company, there is a huge interest in their AQUAmax product among corn growers and that orders for the trademark have been stronger than expected so far. The company anticipates that AQUAmax would be planted on about 7 million acres in North America. Moreover, initial interest in the product is also high in the European markets, as the company is beginning to extend it in these markets. DuPont also benefited from record number of corn hectares planted in the Safrinha season (second-season production of corn) by growers in Brazil, which likely exceeded the summer season corn planting hectares for the first time. Pioneer’s Intrasect product posted strong 40% revenue growth, driven by higher volume and pricing.

DuPont’s crop protection business also reported within the agricultural products division posted record revenues of $1.1 billion, up by almost 17% y-o-y. Revenue growth was primarily led by strong growth in North America (up 60%) and Latin America (up 30%). DuPont’s Rynaxypyr product led revenue growth during the first quarter witnessing growth in all regions and countries.

DuPont's agriculture segment sales results ($ million)
Q1 Ended March 31	Q1 2013	Q12012	change%
Sales	4,669	4,080	14.4%
PTOI*	1,481	1,288	15.0%
* pre-tax operating income excluding significant items

Outlook

With corn and soybean expected to cover more than 97 and 77 million acres of planted area in the North America this year, the company expects the robust growth environment in the agricultural products segment to continue through 2013.

The company reaffirms its outlook for full-year 2013 operating earnings of $3.85-$4.05 per share, an increase of 2-7 percent from $3.77 per share earned in 2012, based on continued strong growth in Agriculture and anticipated overall improvement in global industrial market demand. For first-half 2013, the company expects operating earnings per share to be about 7-9 percent lower than the first half of 2012, primarily reflecting, as in the first quarter, lower Performance Chemicals earnings from peak levels in the prior year.