Strong Pipeline and Superior Distribution System Will Continue to Fuel Growth and Generate Cash
NEW YORK, Feb. 10 /PRNewswire-FirstCall/ -- DuPont Group (NYSE: DD) Vice President James C. Borel said today he expects DuPont business Pioneer Hi-Bred to grow its global seed corn market share by at least 1 to 2 points in 2009 and he committed to grow compounded annual earnings for the DuPont Agriculture & Nutrition segment an average of at least 15 percent over the next five years.
"The DuPont Agriculture & Nutrition businesses are winning in the marketplace," Borel said at the Goldman Sachs 13th Annual Agricultural Biotech Forum. "We just came off a record year and our pipeline, products, people and unique distribution systems are aligned to fuel our growth well into the future."
Seed Market Share
Borel said robust seed orders point to global seed corn market share growth. "Our order books are full throughout key markets in the Northern Hemisphere while Latin America, Africa and Asia are poised to make big gains thanks to new products and traits," he said.
He attributed the growth to strong product performance in 2008 coupled with enhancements to its industry-leading distribution system, including the hiring of more than 700 sales personnel in North America.
In Brazil, the world's third largest corn market, Borel said Pioneer is better positioned than anyone to capitalize on the recent registration of Herculex(R) insect protection. "Brazilian farmers have been looking for a solution like Herculex(R) to increase their yields and reduce the number of times they need to spray for insects."
Borel explained that the introductions of DuPont(TM) Rynaxypyr(R) insecticide and Y Series soybeans in 2008 were just the beginning of a procession of product launches from the company's research pipeline that will continue to fuel DuPont earnings growth.
"Our pipeline is on track to deliver industry-leading technologies that will sustain our growth," he said. "Many of these technologies provide clear advantages over what others are bringing to the market."
Borel said that the company's Optimum(R) AcreMax(TM) 1 insect protection system is expected to receive reduced refuge registration in 2009. "Pending regulatory approval, Optimum(R) AcreMax(TM) 1 products will be the first in-the-bag insect control solution for growers and will eliminate the need for farmers to plant a separate corn rootworm refuge. It will allow growers to easily comply with the U.S. Environmental Protection Agency's refuge management guidelines and increase their productivity."
DuPont also will launch another industry first as early as 2009 - the first biotech soybean trait with direct consumer benefits. High oleic soybeans will offer nutritional benefits to consumers and functional benefits to the food industry.
Other traits in the DuPont pipeline that are on the fast track for introduction:
"These advancements along with our Accelerated Yield Technology(TM) and elite germplasm are allowing us to stay on track to increase corn and soybean yields 40 percent by 2018," he said.
Borel added that a number of DuPont Crop Protection products also are advancing through the pipeline including new weed control options for Optimum(R) GAT(R) products, and highly effective insecticides and fungicides.
DuPont enhanced its seed distribution network in 2008 through the expansion of its Pioneer direct-to-customer field sales force and its new PROaccess(SM) strategy. The PROaccess(SM) strategy will increase Pioneer global seed market reach by getting its seed genetics on more acres through co-brands, second brands and investments. In the United States alone, the PROaccess(SM) strategy will allow Pioneer to have access to distribution systems that cover an additional 5 percent of corn acres.
2009 Outlook for DuPont Agriculture & Nutrition
"We are excited about the growth opportunities in the agricultural sector," Borel said. "While not immune to the global financial crisis, the fundamentals of the agriculture economy are strong and DuPont is well-positioned to serve customers in the segment."
Borel said DuPont Agriculture & Nutrition growth in 2009 will generate material free cash flow. He added that platform revenue is on track to grow by 6 to 8 percent per year over the next five years with earnings growing by an average 15 percent over that same time. Borel's presentation is available in the DuPont Investor Center at www.dupont.com.
DuPont is a science-based products and services company. Founded in 1802, DuPont puts science to work by creating sustainable solutions essential to a better, safer, healthier life for people everywhere. Operating in more than 70 countries, DuPont offers a wide range of innovative products and services for markets including agriculture and food; building and construction; communications; and transportation.
Forward-Looking Statements: This news release contains forward-looking statements based on management's current expectations, estimates and projections. All statements that address expectations or projections about the future, including statements about the company's strategy for growth, product development, market position, expected expenditures and financial results are forward-looking statements. Some of the forward-looking statements may be identified by words like "expects," "anticipates," "plans," "intends," "projects," "indicates," and similar expressions. These statements are not guarantees of future performance and involve a number of risks, uncertainties and assumptions. Many factors, including those discussed more fully elsewhere in this release and in documents filed with the Securities and Exchange Commission by DuPont, particularly its latest annual report on Form 10-K and quarterly report on Form 10-Q, as well as others, could cause results to differ materially from those stated. These factors include, but are not limited to changes in the laws, regulations, policies and economic conditions, including inflation, interest and foreign currency exchange rates, of countries in which the company does business; competitive pressures; successful integration of structural changes, including restructuring plans, acquisitions, divestitures and alliances; cost of raw materials; research, development and field testing of new products, including regulatory approvals and market acceptance; seasonality of sales of agricultural products; and severe weather events that cause business interruptions, including plant and power outages, or disruptions in supplier and customer operations.
The DuPont Oval Logo, DuPont(TM), The miracles of science(TM), Rynaxypyr(R), Optimum(R) AcreMax(TM), Optimum(R) GAT(R), PROacces(SM) and Accelerated Yield Technology(TM) are registered trademarks, trademarks or service marks of DuPont or its affiliates.
Herculex(R) Insect Protection technology by Dow AgroSciences and Pioneer Hi-Bred. Herculex(R) is a registered trademark of Dow AgroSciences LLC.
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