DuPont focuses on plant genetics

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Publish time: 22nd March, 2010      Source: www.efeedlink.com
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March 22, 2010
   

   

DuPont focuses on plant genetics

   

   

   

DuPont is planning to open new research facilities on advanced plant genetics, which would help farmers, boost agricultural productivity.

   

   

DuPont''s research and development (R&D) efforts are geared to double agricultural productivity by 2050 and pep up the Iowa economy.

   

   

DuPont is focused on increasing food production. The company claims to invest about half of its US$1.4 billion annual R&D budget to advancing this goal.

   

   

In addition, the firm is also planning to construct a commercial and parent soy seed production facility in Missouri through Pioneer Hi-Bred. Pioneer is building the US$55 million project to help farmers meet the strong global demand for grain.

   

   

Pioneer expects the plant to begin operating by the end of 2011. As the first Pioneer production facility in Missouri, the new plant will primarily serve soy producers in the US. Pioneer also has a research facility in Missouri as well as corn, soy, sorghum and wheat seed outlets in the state.

   

   

DuPont has been focusing on aggressive cost-cutting and plans to capture US$1 billion in fixed cost productivity and US$1 billion in working capital productivity gains during 2010âˆ'2012.

   

   

A focus on emerging markets and strong performance in the Agriculture & Nutrition segment will likely generate about 10% growth in the top line during 2010âˆ'2012.

   

   

DuPont hopes to grow earnings at 20% between 2010 and 2012. However, the US housing market slump has impacted products such as Corian and Tyvek under its Coatings & Pharmaceutical segment.

   

   

Weak North American automotive and construction markets have hurt its Coatings business. Pharmaceutical royalties are also expected to decline after the expiry of patents in 2010. Hence, we have a Neutral rating on the stock.