DuPont Expects Strong 2011 Growth for Seed Business
DuPont Expects Strong 2011 Growth for Seed Business
Expects 55 Percent of its 'Triples' Switching to New Corn Refuge Products in 2012; Updates Soybean Herbicide Tolerance Pipeline
DuPont will confirm its seed business, Pioneer Hi-Bred, shows strong early financial results through volume gains and price improvements for this season during today's Deutsche Bank Global Industrials and Basic Materials Conference.
"Pioneer is on pace for strong growth in its global business in 2011," said Paul E. Schickler, Pioneer president. "In North America where the planting season is coming to a close, we anticipate an increase in corn and soybean market share coupled with mid single-digit price increases, in line with our objectives."
Schickler attributes the 2011 North America success to Pioneer's year-round focus on helping customers address their unique needs through its Right Product Right Acre strategy.
Corn Seed Business
"Strong customer demand in North America for our newest corn hybrids and Optimum® AcreMax® 1 system coupled with a smooth integration of the PROaccessSM business are key sales growth drivers in 2011," Schickler said.
"Growers see the benefits of our Optimum® AcreMax® products and have planted this new product on almost 4 million acres this year, exceeding our expectations," said Schickler. "Pioneer plans to build on the Optimum® AcreMax® 1 success with new integrated and reduced refuge product choices for growers in 2012, including Optimum® AcreMax® Insect Protection and Optimum® AcreMax® Xtra Insect Protection."
Schickler said approximately 55 percent of Pioneer's 2012 above and below ground lineup of triple-stack products containing Herculex® XTRA will be converted to AcreMax® 1 products.
"Managing refuge requirements for triple stacks is a larger challenge for farmers due to the in-field refuge requirement, and they are responding well to the solutions we have developed," he said.
Soybean Seed Business
"Our brand leadership in soybeans since 1989 is a testament to the value and trust growers place in Pioneer® brand soybean products, which have consistently demonstrated strong yields and exceptional agronomic and disease resistance advantages," said Schickler.
He said the 29 new Pioneer soybean varieties for 2011 - developed for specific grower needs and locations - is an example of the stream of innovation which will help deliver further growth for the soybean business in 2012 and beyond.
As part of a product pipeline update, Schickler noted regulatory approval and commercialization plans for Optimum® GAT® soybeans are delayed by Monsanto's actions, which are preventing the regulatory review of the stack. "We continue to work toward legal resolution regarding Optimum® GAT® soybeans to bring our first-choice innovation in expanded herbicide tolerance to the market," said Schickler. "Our momentum in the marketplace is strong as we deliver superior products and services to growers. The depth of our soybean research programs will enable us to provide innovative products well into the future."
As an example, Pioneer is working with a broad range of trait technologies with tolerance to herbicides such as glyphosate, auxins, glufosinate and ALS to help farmers manage weeds that have developed resistance to certain herbicides. The Pioneer research pipeline includes a late decade introduction of its elite soybean genetics with the Dow AgroSciences' EnlistTM trait and glyphosate trait options including the original Roundup Ready® technology, pending regulatory approval, Schickler said.
"The fundamentals of agriculture remain solid," said Schickler. "Last December, DuPont announced its expectations for sales and pre-tax operating margin growth through 2015 for the Agriculture & Nutrition reporting segment, which included the seed, crop protection and nutrition and health businesses. Those expectations remain unchanged as these businesses, in the aggregate, are expected to deliver sales at a compounded annual growth rate of 8 to 10 percent from 2010-15 and increase pre-tax operating margins in the range of 19 to 21 percent in the same time period."
The preceding segment information does not reflect the recent Danisco acquisition either on a pro forma or forward-looking basis. The company expects to have integrated financial data beginning with the reporting of its second quarter 2011 earnings results.
The full presentation scheduled for 11 a.m. EDT is available in the Investor Center at Pioneer Hi-Bred, a DuPont business headquartered in Des Moines, Iowa, is the world's leading developer and supplier of advanced plant genetics, providing high-quality seeds to farmers in more than 90 countries. Pioneer provides agronomic support and services to help increase farmer productivity and profitability and strives to develop sustainable agricultural systems for people everywhere. Science with Service Delivering SuccessTM.
DuPont is a science-based products and services company. Founded in 1802, DuPont puts science to work by creating sustainable solutions essential to a better, safer, healthier life for people everywhere. Operating in more than 90 countries, DuPont offers a wide range of innovative products and services for markets including agriculture and food; building and construction; communications; and transportation.
Forward-Looking Statements: This news release contains forward-looking statements based on management's current expectations, estimates and projections. The company does not undertake to update any forward-looking statements as a result of future developments or new information. All statements that address expectations or projections about the future, including statements about the company's strategy for growth, product development, market position, expected expenditures and financial results are forward-looking statements. Some of the forward-looking statements may be identified by words like "expects," "anticipates," "plans," "intends," "projects," "indicates," and similar expressions. These statements are not guarantees of future performance and involve a number of risks, uncertainties and assumptions. Many factors, including those discussed more fully elsewhere in this release and in DuPont's filings with the Securities and Exchange Commission, particularly its latest annual report on Form 10-K, as well as others, could cause results to differ materially from those stated. These factors include, but are not limited to changes in the laws, regulations, policies and economic conditions of countries in which the company does business; competitive pressures; successful integration of structural changes, including acquisitions, divestitures and alliances; research and development of new products, including regulatory approval and market acceptance, and seasonality of sales of agricultural products.