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| Paul Schickler |
DuPont confirmed that its seed business,
Pioneer Hi-Bred, shows strong early financial results through volume gains and price improvements for this season during yesterday’s Deutsche Bank Global Industrials and Basic Materials Conference.
“Pioneer is on pace for strong growth in its global business in 2011,” said Paul Schickler, Pioneer president. “In North America, where the planting season is coming to a close, we anticipate an increase in corn and soybean market share coupled with mid single-digit price increases, in line with our objectives.”
Paul attributed the 2011 North America success to Pioneer’s year-round focus on helping customers address their unique needs through its Right Product Right Acre strategy.
Corn Seed Business
“Strong customer demand in North America for our newest corn hybrids and Optimum® AcreMax® 1 system coupled with a smooth integration of the PROaccessSM business are key sales growth drivers in 2011,” Paul said.
Paul said approximately 55% of Pioneer’s 2012 above and below ground lineup of triple-stack products containing Herculex® XTRA will be converted to Optimum® AcreMax® 1 products.
“Managing refuge requirements for triple stacks is a larger challenge for farmers due to the in-field refuge requirement, and they are responding well to the solutions we have developed,” he said.
Soybean Seed Business
“Our brand leadership in soybeans since 1989 is a testament to the value and trust growers place in Pioneer® brand soybean products, which have consistently demonstrated strong yields and exceptional agronomic and disease resistance advantages,” Paul said.
He said the 29 new Pioneer soybean varieties for 2011 are an example of the stream of innovation which will help deliver further growth for the soybean business in 2012 and beyond.
Segment Outlook
“The fundamentals of agriculture remain solid,” said Paul. “Last December, DuPont announced its expectations for sales and pre-tax operating margin growth through 2015 for the Agriculture & Nutrition reporting segment, which included the seed, crop protection and nutrition and health businesses. Those expectations remain unchanged as these businesses, in the aggregate, are expected to deliver sales at a compounded annual growth rate of 8 to 10% from 2010-15 and increase pre-tax operating margins in the range of 19 to 21% in the same time period.”
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