DowDuPont Quarterly Sales Rise on New Crop Protection Products
DowDuPont reported on Thursday its Agriculture division net sales grew 1% to $2.8 billion in the fourth quarter, driven by sales of new crop protection products and the timing of seed shipments in Latin America and U.S and Canada.
The sales increase was partly offset by currency pressures in Latin America. Volume and price rose 4% and 5%, respectively, offset by currency of 5% and the portfolio impact of the Brazil corn seed remedy of 3%.
Fourth-quarter net sales in Crop Protection increased 6%. Organic sales grew 10% on strong volumes, driven by new product launches (including picoxy-based products in Latin America, pasture and land management products and Enlist™ Herbicides), partly offset by a weather-related reduction in demand for nitrogen stabilizers. Higher local prices were offset by currency pressures, primarily in Latin America.
Fourth-quarter net sales in Seeds decreased 4%. Organic sales increased 8%. Strong volume growth reflected the beginning of a recovery from the sale of the Dow AgroSciences Brazil corn seed remedy, an early start to the safrinha season in Latin America and the timing of seed shipments in U.S. & Canada. The negative portfolio impact reflected inclusion of two months of the Brazil corn remedy in last year’s quarter.
“We expect global economic expansion to continue in 2019 at a moderately slower pace than 2018,” said Howard Ungerleider, chief financial officer of DowDuPont. “We continue to closely monitor macroeconomic and geopolitical developments, including ongoing trade negotiations and the pace of economic activity in China. In this environment, we remain focused on the actions in our control, including capitalizing on our growth investments, capturing cost synergy savings, delivering productivity actions and advancing our spin milestones.”