DuPont (DD) Finesse Label Change Lowers Rotation Interval

DuPont’s (NYSE:DD) Crop Protection business has declared a label change for Finesse Cereal & Fallow herbicide. This label change allows planting BOLT technology soybeans four months after the application of DuPont Finesse herbicide at labeled rates where soil pH is 7.9 or lower.

The reduced rotation interval provides farmers more weed-control options by leveraging additional herbicide modes of action. An improvement has been witnessed in soil health and crop yield due to strategic crop rotation. Lower wheat-to-soybeans interval provides farmers more options to control resistant broadleaf weeds and support maximum yield potential. They can also use a field-proven, trusted herbicide with innovative BOLT technology soybeans. This will enable them to reach their production goals and continue increasing production to meet the rising global demand for high-protein foods made from soy ingredients.

The BOLT technology endows selected soybean varieties with increased tolerance to herbicides, providing more burndown weed-control options. Apart from Finesse Cereal & Fallow, BOLT technology soybeans have increased tolerance to DuPont LeadOff and Basis Blend herbicides, offering farmers other options for burndown in no-till situations.

DuPont’s shares rose around 1.4% to close at $64.99 on May 10.

DuPont’s earnings for first-quarter 2016 topped expectations, aided by its cost-savings actions. However, currency headwinds stemming from a strong U.S. dollar weighed on its sales in the quarter.

On a reported basis, DuPont posted earnings from continuing operations of $1.39 per share for the quarter, up from $1.11 per share a year ago. Consolidated profit was $1.23 billion or $1.39 per share, a roughly 19% rise from a profit of $1.03 billion or $1.13 per share a year ago, helped by lower costs. Operating costs fell 7% year over year in the quarter while corporate expenses declined 44%.

Barring one-time items including restructuring charges, DuPont logged adjusted earnings of $1.26 per share in the reported quarter, outpacing the Zacks Consensus Estimate of $1.02. Unfavorable currency translation impact of 10 cents per share affected the bottom line.

DuPont raked in net sales of $7,405 million for the quarter that marked a roughly 6% year-over-year decline.

DuPont currently carries a Zacks Rank #2 (Buy).

Some other well-ranked companies in the diversified chemical space include Akzo Nobel N.V. (OTC:AKZOY) , Albemarle Corporation (NYSE:ALB) and Asahi Kasei Corporation (OTC:AHKSY) . All three stocks sport a Zacks Rank #1 (Strong Buy).

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