US agro-chemical and seed company DuPont has reported a 3% increase in operating earnings at its agriculture division to just under $2bn for the first six months of its 2016 financial year. DuPont said operating margins increased 290 basis points to 17%.
Currency headwinds and lower sales of soya bean seeds were only partially offset by increased corn and pesticide sales as half-year turnover for DuPont’s agriculture division fell 2% to $7bn. Agriculture is the most important division for DuPont, accounting for half of total group sales and almost 60% of group earnings.
In December last year, DuPont announced it had entered a mutual agreement with fellow US chemical manufacturer Dow to merge into a single entity in a $130bn deal.
The deal triggered a wave of consolidation in the agrichemical sector with ChemChina announcing plans to acquire Syngenta, while German company Bayer has recently made overtures to buyout the US seed and chemical giant, Monsanto.
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