To more strongly position itself for attractive agricultural markets, DuPont announced last year that it was investing $100 million in savings from a restructuring into its crop genetics research and seed sales and marketing.
"The growth fundamentals in seed markets around the world are outstanding," said Fyrwald. "As a result, we are accelerating our growth investments at a faster rate than the savings from our previously announced restructuring plan."
Approximately $100 million in growth investments will be made in 2007. The investments are targeted at accelerating new product launches, increasing the rate of genetic gain, expanding capacity for plant biotechnology discovery and development, increased sales coverage, and more aggressive promotions. With regard to savings from the restructure program, Fyrwald said DuPont Agriculture & Nutrition will generate savings of approximately $20 million of the $100 million target late in 2007, another $40 million in savings in 2008, and the remaining $40 million in savings in 2009.
Fyrwald noted that for the year 2007, he expects the DuPont Agriculture & Nutrition platform to deliver about 10 percent revenue growth and 20 percent pretax operating income (PTOI) growth before accounting for the accelerated growth investments. Including the investments, PTOI growth would be about 10 percent, compared to a compound annual average growth rate of 14 percent since 2001.
DuPont reaffirmed its outlook for 2007 full-year earnings per share of about $3.15, excluding a $0.06 per share charge for significant items in the first quarter 2007.
A replay of today's presentation and the question and answer session
can be found at the Investor Center of the company's website at
http://www.dupont.com. DuPont is a science-based products and services company.
Founded in 1802, DuPont puts science to work by creating
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