Chemical and industrial products behemoth E. I. du Pont de Nemours and Company's (DD) Optimum AQUAmax products displayed a significant yield advantage in the second year of on-farm evaluations in North America during unprecedented drought conditions.
When compared to over 4000 competitive products, preliminary 2012 yield data from Optimum AQUAmax products demonstrated more than 8% advantage in water-limited environments; and about 2% yield advantage in favorable growing environments at locations harvested as of September 27, 2012.
Optimum AQUAmax products belong to DuPont's Agriculture business Pioneer, the world's leading developer and supplier of advanced plant genetics. DuPont has released 25 Optimum AQUAmax products in the market over the last two years and expects to increase the number further in 2013.
The Optimum AQUAmax products provides improved performance during water deficits, bringing agronomic stability under optimal water conditions and delivering on-farm expertise to manage water along with productivity and profitability. The farmers who used these products experienced increased plant staygreen, less leaf rolling and firing, as well as improved root mass.
Researchers of Pioneer use native genes from a wide background of maize genetics to improve drought resistance within Optimum AQUAmax products. They have adopted the Accelerated Yield Technology (AYT) system that helps improve productivity.
DuPont released its second quarter 2012 results in July 2012. The company reported adjusted earnings of $1.48 per share for the quarter, exceeding the Zacks Consensus Estimate of $1.46 and the year-ago earnings of $1.37.
The earnings growth was primarily driven by strong performance of the company's agriculture, food and bioscience businesses as well as its advanced materials business, despite weak European markets.
Net sales grew 7% year over year to $11,006 million, driven by higher price and portfolio changes, partially offset by the impact of unfavorable currency and lower sales volumes. However, sales missed the Zacks Consensus Estimate of $11,252 million.
DuPont, which competes with The Dow Chemical Company (DOW) and BASF SE (BASFY), currently retains a short-term Zacks #5 Rank (Strong Sell) and we have a long-term (more than 6 months) Neutral recommendation on its shares.