RSS
Twitter
Linked In
News In
News
Linked In
RSS
https://twitter.com/Agrimoney
http://www.newsnow.co.uk/h/Industry+Sectors/Agriculture

You are viewing 1 of your 2 complimentary articles.

Register now to receive full access.

Already registered?

Login | Join us now

DuPont cuts profit hopes on 'continued weakness' in ag markets

Twitter Linkedin

Chemical company DuPont has seen shares tumble, after it trimmed its full-year earnings forecast, lowering expectations for sales in its farm segment due to "continuing weakness in global agricultural markets".

The US conglomerate, for which relies on seed and agrichemicals for more than one-third of sales, has faced seen demand for inputs wane as farmers tighten their belts.

DuPont said has lowered its total forecast earnings for this year to $3.10 per share, down from earlier guidance of $4.00-4.20 per share, citing a "challenging" global agriculture market, as well as currency effects.

Slow start

DuPont, which owns the seed company Pioneer, said it expects "continuing strong headwinds" for its agriculture sector in 2015, thanks the effect of the weak Brazilian real, and a fall in global corn planted areas.

The group forecast an operation loss for the agriculture segment in the three months to September 30.

The group reported that the South American agricultural season, which is currently underway, was seeing a "slow start as farmers remain cautious given the economic environment".

Weaker demand

DuPont's agriculture business has already seen earnings fall thanks to lower sales volumes and currency effects.

DuPont noted "weaker demand in global crop protection markets, reduced expectations for corn area in Latin America, and lower than expected soybean volumes in North America".

In the three months to June 30, DuPont's agriculture segment sales were $3.2bn, down 11% from the same time last year.

The group reported "lower corn planted area in North America and globally in the first half of the year", as well as a fall in soybean seed demand, leading to a 7% fall in seed sales.

Meanwhile agricultural chemical sales were down 21% thanks to "weaker market demand from farmers looking to reduce input costs and delay purchases, lower insect pressure in Brazil and the impact of higher inventories in the Americas".

Earnings fall

DuPont reported earnings of $1.18 per share in the three months to June 30, or $1.075bn, down 1% from 1.085bn over the same period last year.

This fell short of analysts' expectations of $1.21 per share.

The group's revenues of were down 11.5% to $8.60bn, from $9.71bn over the same time last year, and short of analyst projections of $8.97bn.

DuPont shares in New York were down 4.7% at $54.06 per share in morning deals.

By Agrimoney.com

Twitter Linkedin
Related Stories

Morning markets: Grains stage a recovery. Will it last?

Corn, soybean and wheat futures start Wednesday making headway which has been difficult to come by of late. Cotton gains too

Evening markets: ags overlook crumbs of comfort in Wasde to set fresh historic low

The Bcom ag commodity subindex ends at a fresh record low, as US export fears overtake upbeat interpretations of corn, cotton estimate revisions

Headline Wasde data, and change from market estimates

How the USDA’s Wasde data compare with last month’s estimates, and the figures than investors had expected

Corn futures revive as US cuts inventory forecast, citing strong ethanol use

US officials cut forecasts for domestic corn stocks by more than investors had expected. But data are not so bullish for soybeans and wheat
Home | About | RSS | Commodities | Companies | Markets | Legal disclaimer | Privacy policy | Contact

Our Brands: Comtell | Feedinfo | FGInsight

© Agrimoney.com 2017

Agrimoney.com and Agrimoney are trademarks of Agrimoney Ltd
Agrimoney is part of the Briefing Media group
Agrimoney Ltd is registered in England & Wales. Registered number: 09239069