DuPont: Weaker Herbicide, Corn Seed Sales

DuPont CEO Ellen Kullman called 2014 a "transition year for agriculture." Photo courtesy DuPont

DuPont CEO Ellen Kullman called 2014 a “transition year for agriculture.” Photo courtesy DuPont

DuPont warned it will earn less than expected for the second quarter and full year, due mainly to weak corn seed sales and higher-than-anticipated seed inventory write-downs.

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The revised outlook also reflects lower-than-expected crop protection herbicide sales, largely due to weather.

Given favorable soybean economics, soybean sales volumes in North America are higher than expected, DuPont said. “However, the higher soybean volume will not fully offset the decline in corn volume, especially given the transition under way in the company’s soybean lineup to newer, higher performing products,” it added.

DuPont believes this is a “short-term negative trend, and there will be strong demand for its next generation soybean products.”

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“While 2014 is a transition year in agriculture, the revisions to the outlook we made today do not meet the expectations we set for our Agriculture segment or for the company,” said DuPont Chair and CEO Ellen Kullman. “We have a strong global market position and a rich pipeline and we will make the necessary changes so that we return to our five-year track record of delivering the reliable, attractive growth our shareholders expect from this segment.”

The company expects operating earnings in the second quarter to be moderately below the $1.28 per share recorded in the same period last year. As a result, the company is lowering its full-year outlook for operating earnings to $4.00 to $4.10 per share.

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