February 11, 2011

 

DuPont sees strong continuing growth throughout 2015

 

 

DuPont foresees that both its Agriculture & Nutrition revenue and pre-tax operating margins will increase by 8-10% and 19-21% respectively throughout 2015 for the seed, crop protection businesses.

 

This was according to DuPont's Executive Vice President, James C. Borel, who also mentioned that the company also plans to increase pre-tax operation in the same range (19-21%) for its nutrition and health businesses.

 

"The DuPont Agriculture & Nutrition segment delivered double-digit sales growth in 2010 while investing aggressively in research," said Borel. "We gained market share, received 30 regulatory approvals in the seed business alone and advanced nine programs across our seed and crop protection pipelines."

 

"Our momentum is fuelled by our relentless focus on innovation and meeting the needs of growers," said Borel. "Our approach to the marketplace is allowing us to deliver on our commitment to increase global food productivity through innovative solutions."

 

Borel said that the seed business expects to deliver growth in both North America and international seed opportunities. North America seed orders are the first indication of success against the goal and are on pace with growth targets, with the most recent classes of Pioneer brand corn hybrids making up approximately 40% of 2011 volumes. Pioneer brand Y Series soy continues to demonstrate strong performance, and 31 new varieties have been added for the 2011 product line-up.

 

The launch of Optimum AcreMax 1 insect protection, the industry's first in-the-bag corn rootworm refuge solution, will contribute to results in 2011. Grower demand for Optimum AcreMax 1 products is strongly outpacing the one million unit launch target by about 20%. At this pace, Optimum AcreMax 1 products are expected to be planted on about 3 million acres in its initial launch year.

 

Borel said the crop protection business continues to drive results through an increased focus on developing markets, growth in high-value fruit and vegetable crops, and delivering new innovations faster and more efficiently. This strategy has resulted in a more diverse product portfolio and new products accounting for one-quarter of sales in 2010. High-performance product DuPont Rynaxypyr continues to have strong momentum in the marketplace.

 

"DuPont Rynaxypyr insecticide posted 2010 sales approaching US$400 million, and we've set a new peak sales estimate of half a billion dollars," said Borel. "We are expanding the opportunity space for Rynaxypyr while continuing to advance DuPont Cyazypyr and other new insect protection products. Overall we see a US$1 billion opportunity for our insect offerings."

 

"Both the seed and crop protection businesses are investing in powerful pipelines, innovating to meet our customers' needs and provide them more options," Borel said. "We continue to improve focus and speed by dynamically resourcing our pipelines."

 

Borel said 2010 efforts reflect four program additions and nine advancements across the R&D pipelines.

 

The seed pipeline updated programs across corn, soy, canola and rice. Early phase programs such as drought and nitrogen use solutions were highlighted as well as programs such as Optimum Intrasect insect protection, offering dual mode above-ground insect protection and reduced refuge requirements, which recently received US and Canadian regulatory approvals. Optimum Intrasect hybrids will be on wide-scale, on-farm demonstrations across North America in 2011, with sales expected for the 2012 growing season.

 

The crop protection business advanced two and added two new product concepts, including a new class for insect control. The pipeline extends into new areas of herbicides, with new weed control products for land management launching this year. 2011 crop protection sales will include at least four branded product offerings for land management.

 

"As we look ahead to 2011 and beyond to 2015, we're confident we'll be able meet our targets by continuing to focus on innovation, execution and meeting the needs of growers," Borel said.