DuPont - raised its first-quarter earnings by 20%, highlighting the investor-friendly team of Agriculture Boom companies that are capitalizing on the demand for raw commodities.
The Wilmington, Del. conglomerate raised its earnings estimate to $1.29 per share, up from its March 14 outlook of $1.14 to $1.19. "Growth in agriculture and emerging markets, along with continued cost productivity gains, are enabling us to overcome challenges in certain U.S. markets and higher cost ingredients," said Charles Holliday, Jr., DuPont chairman and chief executive officer.
"While the macroeconomic outlook remains difficult to predict, we are focused on our priorities to capitalize on rising global demand for our products; further penetrate key markets in the world’s rapidly growing geographies; and extend our productivity improvement programs," he said.
"The agri-boom is alive and well," said Horacio Marquez, a Money Morning contributing editor and a former Wall Street veteran. "The relative lack of rain in the southern United States, Argentina and Brazil promise to restrict supply [of farm-grown crops], while demand is exploding as more and more global consumers come out of poverty and demand better food, including bread, meat and vegetable oils."
According to Marquez, this trend is even more powerful in India and China. Similar trends are playing out in other Latin American, African, and Asian countries that export commodities and are being lifted by globalization. Energy trends - including the move into ethanol - also are driving demand for robust seeds.
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