DuPont Leader Outlines Growth Strategy for Seed Business
Tailored, Whole-Farm EncircaSM Services Differentiated in Marketplace
NEW YORK, March 12, 2014 – DuPont leader Paul E. Schickler outlined growth drivers for the seed business today at the Eighteenth Annual Goldman Sachs Agribusiness Conference – highlighting opportunities in key global agricultural markets and the recent launch of the EncircaSM services platform for U.S. growers.
“With an expected increase in population, urbanization and a rapidly emerging middle-class, we must become more productive on our existing land base,” said Schickler, president of DuPont Pioneer. “That will require science-based, sustainable solutions for our farmer and food company customers.”
DuPont Pioneer plays a key role in DuPont’s plan to build a higher growth, higher value company, particularly the company’s strategic focus on extending its leadership and leveraging linkages in the science-driven segments of the agriculture-to-food value chains.
“Over the next five years we anticipate about half of our growth in the Agriculture segment will come from outside of North America focused particularly in the key markets of Latin America, Eastern Europe, India and China,” said Schickler. “These are markets where we have a compelling value proposition for farmers and a strong position today from which we will continue to grow.”
The global seed pipeline reinforces an integrated approach to product development and highlights agricultural solutions through differential breeding, plant protection traits, corn agronomic traits, soybean output traits and hybridization systems. These solutions build on the recent product success of Optimum® AQUAmax® corn hybrids and Optimum® AcreMax® corn products validated by last year’s gain of more than one point in North America corn market share.
Differentiated Marketplace Position with Whole-Farm Decision Services
DuPont Pioneer has been a leader in developing innovative decision services for the past decade, mapping more than 20 million grower acres and helping customers implement variable rate seeding prescriptions on more than 1.5 million acres during the 2013 growing season. With the recent launch of EncircaSM services, DuPont has expanded its suite of decision services offerings to help growers improve their productivity and profitability.
“Our approach to whole-farm decision services is different,” said Schickler. “We are offering growers tailored services – no matter the brand – and personalized advice through trusted, local agents.”
In addition to planting decisions, EncircaSM services will help growers make more informed management decisions about nitrogen/fertility, irrigation and grain marketing throughout the year. EncircaSM services have been developed through internal investment, strategic acquisitions and important public and private collaborations with some of the leading innovators in agriculture. The offerings also leverage decades of agronomy leadership, new technologies and our advantaged route-to-market approach.
“The launch of EncircaSM services represents an increasingly important part of the Pioneer growth strategy,” said Schickler. “There is enormous potential for these services to help improve productivity for North America corn and soybean farmers and extend globally to a wide range of crops and markets. Our offerings put the customer’s need for flexibility and convenience first and connect growers to one of the industry’s largest teams of professional agricultural advisors.”
In the next decade, EncircaSM services are estimated to deliver a peak revenue stream of more than $500 million annually for Pioneer. Additional services will be rolled out under the EncircaSM services brand in 2015 and beyond.
To view a full copy of today’s presentation, visit the “Events & Presentations” page on the DuPont Investor Center.
Use of Non-GAAP Measures
Management believes that certain non-GAAP measurements are meaningful to investors because they provide insight with respect to ongoing operating results of the company. Such measurements are not recognized in accordance with GAAP and should not be viewed as an alternative to GAAP measures of performance. Reconciliations of segment operating earnings to the most directly comparable GAAP measures are available on the Investor center of www.dupont.com under Key Financials & Filings.
DuPont (NYSE: DD) has been bringing world-class science and engineering to the global marketplace in the form of innovative products, materials, and services since 1802. The company believes that by collaborating with customers, governments, NGOs, and thought leaders we can help find solutions to such global challenges as providing enough healthy food for people everywhere, decreasing dependence on fossil fuels, and protecting life and the environment. For additional information about DuPont and its commitment to inclusive innovation, please visit http://www.dupont.com.
Forward-Looking Statements: This news release contains forward-looking statements which may be identified by their use of words like "plans," "expects," "will," "believes," "intends," "estimates," "anticipates" or other words of similar meaning. All statements that address expectations or projections about the future, including statements about the company's growth strategy, product development, regulatory approval, market position, anticipated benefits of acquisitions, outcome of contingencies, such as litigation and environmental matters, expenditures and financial results, are forward-looking statements. Forward-looking statements are not guarantees of future performance and are based on certain assumptions and expectations of future events which may not be realized. Forward-looking statements also involve risks and uncertainties, many of which are beyond the company's control. Some of the important factors that could cause the company's actual results to differ materially from those projected in any such forward-looking statements are: fluctuations in energy and raw material prices; failure to develop and market new products and optimally manage product life cycles; significant litigation and environmental matters; failure to appropriately manage process safety and product stewardship issues; changes in laws and regulations or political conditions; global economic and capital markets conditions, such as inflation, interest and currency exchange rates; business or supply disruptions; security threats, such as acts of sabotage, terrorism or war, weather events and natural disasters; ability to protect and enforce the company's intellectual property rights; successful integration of acquired businesses and separation of underperforming or non-strategic assets or businesses and successful completion of the proposed spinoff of the Performance Chemicals segment including ability to fully realize the expected benefits of the proposed spinoff. The company undertakes no duty to update any forward-looking statements as a result of future developments or new information.
# # #
The DuPont Oval Logo, DuPont™, The miracles of science™, EncircaSM, Optimum®, AQUAmax®, and AcreMax®, are trademarks or registered trademarks of DuPont or its affiliates.
Herculex ® Insect Protection technology by Dow AgroSciences and Pioneer Hi-Bred, Herculex ® and the HX logo are registered trademarks of Dow AgroSciences, LLC. YieldGard®, the YieldGard Corn Borer design, and Roundup Ready® are registered trademarks used under license from Monsanto Company. Liberty® LibertyLink and the Water Droplet Design are trademarks of Bayer. Agrisure® is a registered trademark of, and used under license from, a Syngenta Group Company. Agrisure® technology incorporated into these seeds is commercialized under license from Syngenta Crop Protection AG.