DuPont Loss Widens on Brazil’s Woes

Posted by Jackie Pucci|30 October 2015

DuPont’s agriculture business saw a 30% decline in sales in the third quarter, hit by lower volumes and currency effects, as volatile conditions in Brazil took their toll on yet another ag company.

Sales were $1.09 billion in the period, while it posted a much larger operating loss of $210 million, compared with a $56 loss million in the year-ago quarter.

The company cited decreased seed volumes and reduced demand for insect control products, primarily in Brazil, and a $40 million negative impact from its LaPorte manufacturing facility shutdown. Excluding a $108 million negative currency impact, the operating loss would have been $102 million.

DuPont reaffirmed its outlook for the full year for the company as a whole, reflecting continued strengthening of the U.S. dollar versus currencies in emerging markets, particularly the Brazilian real. It also expects the Brazilian agricultural market to weaken further, as well as weaker ag conditions in emerging markets.