Dow AgroSciences reports increase in Q1 profit

Dow AgroSciences reported first quarter earnings of US$384 million, compared to US$363 million for the same period in 2009.

The Indianapolis-based health and agricultural sciences unit of The Dow Chemical Co. said the increase is primarily based on raw materials and operations cost improvements.

Sales in health and agricultural sciences were US$1,344 million, down from US$1,461 million in the year-ago period. (Reported sales for the first quarter of 2010 were US$1,369 million, including the impact from recent seed acquisitions.)

Volume declined 6%, while price was down 2%. Strong farmer acceptance of new products and seed acquisitions partially offset the impact of unseasonably cold spring weather across the Northern Hemisphere and continued pricing pressure on certain agricultural chemicals. Volume and price declined in agricultural chemicals as strong growth of new products such as pyroxsulam cereal herbicide, penoxsulam rice herbicide and spinetoram insecticide were more than offset by continued excess industry supply of glyphosate, which affected both price and volume compared with the year-ago period. Seeds, traits and oils reported sales growth in all major product lines, with the strongest volume gains in corn in North America, Europe, Middle East, Africa (EMEA) and Latin America.

Cotton seeds sales increased significantly versus the same period last year. The commercial launch of SmartStaxâ„¢ corn hybrids continues to progress on schedule and is meeting all milestones. Earnings before Interest, Tax and Depreciation (EBITDA) for health and agricultural Sciences was US$384 million for the quarter, up from EBITDA of US$363 million in the first quarter of 2009, primarily based on raw materials and operational cost improvements, and an enhanced sales mix.