DuPont 2008 Annual Report Download - page 29

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Item 7. Management’s Discussion and Analysis of Financial Condition and
Results of Operations, continued
AGRICULTURE & NUTRITION
Segment Sales
(Dollars in billions)
PTOI
(Dollars in millions)
2008 $8.0 $1,087
2007 $6.8 $ 894
2006 $6.0 $ 604
Agriculture & Nutrition leverages the company’s technology, customer relationships and industry knowledge to
improve the quantity, quality and safety of the global food supply. Land available for worldwide agricultural production
is increasingly limited. Therefore, increases in production will need to be achieved principally through improving crop
yields and productivity rather than through increases in planted acreage. Agriculture & Nutrition delivers a broad
portfolio of products and services that are specifically targeted to achieve gains in crop yields and productivity,
including Pioneer»brand seed products and well-established brands of insecticides, fungicides and herbicides. The
segment operates across the food value chain from inputs for producing agriculture products to global production
and distribution of soy-based food ingredients to food quality diagnostic testing equipment. Research and
development focuses on leveraging technology to increase grower productivity and enhance the value of grains
and soy through improved seed traits, superior germplasm and the effective use of insecticides, herbicides and
fungicides.
Agriculture & Nutrition includes the company’s wholly owned subsidiary, Pioneer Hi-Bred International, Inc.
(Pioneer), which is also the world’s leading seed brand and a world leader in improving crop yields with hybrid
and varietal seeds that improve grower yields and provide insect protection and herbicide tolerance. The principal
products of Pioneer are hybrid seed corn and soybean seed. In 2008, Pioneer benefited from the global launch of
approximately 30 new soybean varieties and 60 new Pioneer»brand corn hybrids that include new combinations of
corn borer, corn rootworm and weed management traits highlighted by the expansion of the Herculex»
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family of
traits.
Agriculture & Nutrition also serves the global production agriculture industry with crop protection products in the
grain and specialty crop sectors, forestry and vegetation management. Principal crop protection products are
herbicides, fungicides, insect control products and plant growth regulators. The segment continued to expand its
presence in fruit and vegetable specialty markets and continues to expand product offerings in the professional pest
control market. Additionally, the segment operates within the specialty food ingredients market, including soy
proteins and lecithins through its majority-owned venture with Bunge Limited, The Solae Company.
2008 versus 2007 Sales of $8 billion were 16 percent higher reflecting 14 percent higher USD selling prices and
3 percent higher volume, partially offset by a 1 percent reduction from portfolio changes. The volume growth reflects
higher corn seed sales in Europe and Brazil, record soybean seed sales in North America and Brazil due to market
share gains and increased acreage shift from corn, and strong demand for corn and cereal herbicides and cereal
fungicides in Europe. The higher USD selling prices reflect higher value product mix, pricing actions to offset the
increases of raw materials costs and favorable currency impacts in Europe, Latin America and Canada.
PTOI for 2008 was $1.1 billion, up 22 percent versus $894 million in 2007, principally driven by increased sales and
higher value product mix, partially offset by continued funding of strategic growth investments in research and
development and sales and marketing.
2007 versus 2006 Sales of $6.8 billion were 14 percent higher reflecting 9 percent higher USD selling prices and a
5 percent increase in volume. Higher USD selling prices reflected a richer mix of corn and soybean seed, and crop
protection herbicides and fungicides. Volume increases were driven by corn seed sales in North America, herbicides
in Europe and fungicides in Latin America, partially offset by a decrease in the sale of soybean seed on lower
planting acreage in North America.
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Part II
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