Seed sales drive DuPont’s earnings

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Strong global demand for corn, soybean and crop protection products helped drive E.I. du Pont de Nemours & Co.’s second-quarter earnings up 11 percent to $1.078 billion, or $1.18 per share, compared with $972 million, or $1.04 per share, in the year-ago period.

Sales among all its operations increased 12 percent to $8.8 billion, partially affected by a 7 percent increase in local selling prices to offset a 15 percent increase in energy, raw material and freight costs in the second quarter. Sales outside the United States rose 18 percent, while domestic sales grew 5 percent.

Meanwhile sales in its agriculture and nutrition segment, which includes Johnston-based Pioneer Hi-Bred International Inc., soared 23 percent to $2.5 billion from record seed revenues and strong global pricing actions.

Fixed costs as a percentage of sales also improved 200 basis points from second quarter 2007 as a result of the company’s continued cost productivity improvement programs.

“DuPont captured strong growth in agriculture and emerging markets and grew earnings despite accelerating raw material and energy costs in the second quarter. We are executing well in a challenging environment,” said company Chairman and CEO Charles Holliday Jr., in a release.

The company increased the lower end of its full-year 2008 earnings outlook, narrowing the range to $3.45 to $3.55 per share. The company expects per-share earnings for the second half of 2008 to be modestly lower than last year as a result of higher energy and ingredient costs, lower demand in certain developed markets, lower income from asset sales and a higher base tax rate.