农民改种大豆给杜邦带来压力

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Soybean Shift Pressures DuPont

Chemical and Agricultural Company's Net Rose 3.9%, Though Operating Earnings Fell

Updated July 22, 2014 4:23 p.m. ET

Farmers' preference for planting soybeans over corn will continue to challenge  DuPont Co.  DD +0.60%     , one of the world's largest sellers of high-tech seeds, executives said Tuesday.

Plunging corn prices, weighed down by last year's record U.S. corn harvest and expectations for another bumper crop this year, are encouraging farmers in North and South America to reduce their corn acreage, cutting into DuPont's main line of seeds.

DuPont's second quarter was hurt by lower-than-expected sales of corn seed. Bloomberg

"If the current market environment persists, the shift in acres toward soybeans, that can temper our volume in the short term for the seed business," said James Borel, DuPont's executive vice president in charge of its agriculture business, on a conference call Tuesday discussing the company's second-quarter earnings.

Profits at the Wilmington, Del., chemical and agricultural company climbed 3.9% over the period, though operating earnings fell due to lower profits from the seed business.

DuPont shares fell 0.9% to $64.95 on Tuesday. The stock is up 0.6% this year.

The company last month lowered its earnings guidance for the year, primarily because of softer corn-seed and herbicide sales, and seed inventory write-downs. Corn makes up about half of DuPont's seed business, according to analyst estimates.

DuPont said its second-quarter agriculture sales were $3.62 billion, roughly flat with the year-earlier period. Operating earnings in the segment were $836 million, an 11% decline from the year-ago quarter.

The company also reported a $263 million restructuring charge partly tied to planned layoffs as DuPont realigns the company to focus more closely on agriculture and nutrition. DuPont anticipates global staff reductions "in the low single digits, on a percentage basis, across our businesses and functions," a spokesman said Tuesday. DuPont employed about 64,000 people at the end of 2013.

U.S. agricultural companies are weighing their prospects as North American farmers raise another bountiful corn crop. The U.S. Department of Agriculture this week reported that the domestic corn crop was in its best condition in a decade for this point in the growing season.

Benevolent weather also boosts the odds of a huge soybean harvest. The USDA estimated recently that growers would plant a record 84.8 million acres with the oilseeds this year, while dialing back acres planted with corn.

Farmers in Latin America are expected to continue a similar shift in the Southern Hemisphere over the coming months, Mr. Borel told analysts Tuesday.

The abundance of grain and oilseeds expected to hit the market this autumn has pushed corn futures prices 25% lower over the past 12 months, while soybean prices have declined 17%.

For seed and chemical companies, big crops have a mixed effect. While the cost of producing seeds to sell in upcoming seasons typically declines, lower crop prices leave farmers with less money to spend on farm supplies like seeds, chemicals and fertilizer. Farmers, for example, may be less willing to buy the newest versions of genetically engineered seeds.

"Another strong harvest in North America, if realized, will continue to pressure overall economics for corn and soybean farmers," Mr. Borel said.

The crop shift comes as DuPont is pivoting away from lower-growth commodity businesses toward higher-growth areas, such as nutritional products and agriculture. As part of the effort, DuPont last year said it plans to spin off its performance-chemicals segment, which makes materials for nonstick frying pans and house paints.

DuPont reported a profit of $1.07 billion, or $1.15 a share, up from $1.03 billion, or $1.11 a share, a year earlier. Excluding certain items, operating earnings fell to $1.17 from $1.28 a share. Net sales slipped 1.4% to $9.71 billion.

The company in June had projected second-quarter operating earnings moderately below the $1.28 a share posted for the year-earlier period. Analysts polled by Thomson Reuters expected per-share profit of $1.17 and revenue of $9.79 billion.

The company reiterated its full-year outlook for operating earnings of $4.00 to $4.10 a share, and said its board has approved a 4% increase for its quarterly dividend to 47 cents a share, the third dividend increase in a little over two years.

Write to Jacob Bunge at jacob.bunge@wsj.com and Anna Prior at anna.prior@wsj.com