The Dow Chemical Co., parent company of Dow AgroSciences, announced its first quarter (Q1) earnings. Below you will see information on Dow AgroSciences (referred to as Agricultural Sciences).
Agricultural Sciences reported first quarter sales of $1.6 billion, down 5% versus the year-ago period driven by a volume decline of 5%.
Crop Protection volume declined despite higher demand for insecticides in most geographic areas and continued adoption of Arylex broadleaf herbicide. These gains were more than offset by reduced demand primarily for herbicides and insecticides in Asia Pacific, driven by lower demand for rice herbicides in China where flooding during last year’s season led to high channel inventories that continued into this year. Seed volumes declined primarily due to lower demand for corn seeds in North America on projected reduced acreage and lower demand for sunflower seed in EMEAI and Latin America. These factors were mostly offset by volume gains in corn in Latin America and in cotton in the United States, reflecting the successful launch of ENLIST cotton and early grower adoption.
Operating EBITDA was $351 million, down from $403 million in the year-ago period as a higher contribution from the Seeds business, driven by demand for ENLIST cotton and growth in corn in Latin America, was more than offset by lower volume in Crop Protection, particularly in Asia Pacific.