Tags: DuPont | modified | seeds | DD

DuPont Moves into Genetically Modified Seeds

By    |   Friday, 23 Dec 2011 10:07 AM

DuPont Co. (DD), the nation’s largest chemicals company by market value, thrives on innovation. It began as a gunpowder company and was responsible for the invention of nylon; Lycra (spandex); Freon, the primary refrigerant in air conditioners; Teflon, widely used in nonstick cookware; and Tyvek, a primary construction material. Now the company is getting into genetically modified seeds.

With the industrial side of DuPont’s business suffering from global economic weakness, the food and agriculture operations provide a welcome counter-cyclical balance.

A key element of DuPont’s push into agriculture was its $6.3 billion purchase of Danisco in May. The Danish firm is the world’s largest food ingredient maker. That purchase will push pre-tax operating margins in DuPont’s nutrition and health unit up to between 12 percent and 14 percent in the “long term” from 7 percent in 2011, Craig Binetti, the unit’s president, recently told investors.

Agriculture and nutrition will account for the majority of DuPont’s future growth in North America and emerging markets, Morningstar predicts. Its competition with Monsanto (MON), the world’s largest seed company, will be intense in this area.

DuPont’s profit jumped 25 percent in the third quarter, to $460 million from $369 million a year earlier. Sales soared 32 percent to $9.2 billion.

Lowered earnings

In early December, DuPont lowered its earnings estimate for all of 2011 by 10 percent, thanks to sluggish economic growth worldwide. “We are seeing slower growth in certain segments during the fourth quarter, driven by global economic uncertainty,” DuPont CEO Ellen Kullman said in a statement.

That move led Standard & Poor’s analyst Leo Larkin to cut his 12-month price target for DuPont shares to $55 from $60. But he still has a four-star buy rating on the stock. And the company’s shift toward food and agriculture should help it recover.

DuPont next reports earnings Jan. 25.

© 2017 Newsmax Finance. All rights reserved.

 
1Like our page
2Share
Companies
DuPont Co. (DD), the nation s largest chemicals company by market value, thrives on innovation. It began as a gunpowder company and was responsible for the invention of nylon; Lycra (spandex); Freon, the primary refrigerant in air conditioners; Teflon, widely used in...
DuPont,modified,seeds,DD
307
2011-07-23
Friday, 23 Dec 2011 10:07 AM
Newsmax Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved