DuPont Pioneer, the agriculture business arm of
E. I. du Pont de Nemours and Company
), has entered into a license agreement with Hayward,
Calif.-based Mendel Biotechnology, Inc. to enhance water use
efficiency and photosynthesis in corn.
Per the agreement, DuPont Pioneer and Mendel will evaluate and
commercialize new gene leads. They will also assess them for
yield-enhancement traits in Pioneer brand corn products. Mendel
has identified these gene leads for its next-generation plant
The collaboration mainly facilitates greater efficiency in
water use and enhanced photosynthesis, which can improve farms'
productivity and increase farmers' profitability along with
enhancing sustainability of agriculture globally.
DuPont's fourth-quarter 2012 results, released on Jan 22, were
impressive as both revenues and adjusted earnings outpaced the
Zacks Consensus Estimates. However, profit tumbled year over year
due to higher costs and lower demand across titanium dioxide and
DuPont posted adjusted earnings from continuing operations
(excluding the performance coatings business) of 11 cents per
share for the quarter, beating the Zacks Consensus Estimate by a
couple of cents. Net sales were essentially flat year over year
at $7,325 million but exceeded the Zacks Consensus Estimate of
DuPont continues to witness weakness across a number of end
markets. DuPont is exposed to raw material cost inflation and
currency headwinds and is seeing a decline in sales volumes
across many segments.
Nevertheless, the company is witnessing strength in its
agriculture and food businesses and should continue to benefit
from the synergies of Danisco acquisition. Moreover, DuPont has a
healthy balance sheet and remains committed to boosting
DuPont currently holds a short-term Zacks Rank #3 (Hold).
Other stocks in the chemical industry worth considering are
Air Products & Chemicals Inc.
Akzo Nobel NV
Eastman Chemical Company
). All of them hold a Zacks Rank #2 (Buy).
AKZO NOBEL NV (AKZOY): Free Stock Analysis
AIR PRODS & CHE (APD): Free Stock Analysis
DU PONT (EI) DE (DD): Free Stock Analysis
EASTMAN CHEM CO (EMN): Free Stock Analysis
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