DuPont Relying on Ag Business
Zacks Market Commentaries (August 27th, 2008) Writes:
Non-G7 markets, agricultural chemicals and a focus on key customers and new products will drive growth for DuPont Co. (DD). Strong performance in the agricultural products market, emerging markets, pricing actions, favorable currency and productivity is likely to outweigh increasing costs as well as weak auto and housing markets. The company is focusing on nearly doubling its earnings growth rate.
However, slowing demand in U.S. markets is likely to offset growth in the agriculture market. DD expects second half 2008 earnings per share to be lower than the last year due to higher energy and ingredient costs, lower demand in developed markets, lower income from asset sales and a higher effective tax rate. This compels us to rate the stock a Hold with a target of $41.50.
Due to an exceptionally strong North American agriculture market, Pioneer Hi-Bred, DuPonts advanced plant genetics business is poised for large revenue gains. DuPont expects
...Agricultural Chemicals, Agricultural Products, Central Europe, DuPont Co., Greece, Higher Energy, Latin America, non-U, North Africa, Stocks to Watch, Turkey, United States, USD


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