- Dupont Q4 Earnings: Company Positive On Dow Merger & Cost Saving Plan, But Weak Agro Sales And Currency Headwinds Continue To Hurt Operations
- Dupont Q3 Earnings: Weak Agro Products Sales and Currency Headwinds Hurt Operations, And Will Continue To Do So In Near Term
- DuPont 2Q: Soft Agricultural Markets and Currency Headwinds Weigh On Earnings
- DuPont: Soft Agricultural Products Market and Currency Headwinds To Weigh On 2Q Earnings
- DuPont Close To Another Transformational Milestone With Chemours Spin Off
- DuPont’s Earnings Decline On Lower Corn-Seed Sales, Stronger U.S. Dollar
DuPont (NYSE:DD) continues to bet on emerging markets as it has opened its world-class ballistic facility in India.  In March, the company opened a new innovation center each in Brazil and Mexico. It also opened four others last year in Korea, Taiwan, Thailand and India.  In the U.S., DuPont has opened a research facility in Iowa which focuses on agriculture and nutrient-based market.  DuPont competes with other chemical manufacturing majors such as Dow Chemical Company (NYSE: DOW) and Bayer AG (BAY:GR). We have a $59 price estimate for DuPont’s stock, which is around 11% above the current market price.
This ballistic facility in India is DuPont’s first in Asia-Pacific and fifth in the world. The facility will provide testing of protection materials in ballistics operations and will help understand and develop country-specific solutions, as the Indian market needs are different from those of other markets. The move will also help the company introduce a broader portfolio of its patented Kevlar materials. The demand for Kevlar materials is on the rise in aerospace, oil and natural gas, alternative energy and automotive sectors. 
DuPont’s market share in global performance and safety materials market has been rising due to the company’s increasing investments in emerging markets. We expect the company to possess a 4.1% share of an estimated $460 billion global market.
Bullish on Food Industry
We believe DuPont will continue to invest in agriculture and nutrient-based market as the company feels there is a great opportunity as rising incomes in developing markets combined with a healthy population growth will lead to significant increase in food consumption. The company recently opened a $40 million agriculture research center in Johnston, Iowa.  The new research facility will focus on plant breeding and developing new transgenic products. DuPont will spend as much as $10 billion on research and development of solutions dedicated to agriculture and nutrient market by 2020.
DuPont has been aggressively eating up market share in the global agriculture products market, aided by new product launches and a strong crop protection business, which has been witnessing a double digit growth worldwide.Notes:
- DuPont India opens ballistics center, The Hindu, April 13, 2012 [↩]
- DuPont launches new innovation center in Brazil, March 21, 2012 [↩]
- DuPont Opens $40 Million Agriculture Research Facility, cornandsoybeandigest.com, April 12, 2012 [↩] [↩]
- DuPont opens world-class ballistics facility in city, timesofindia.com, April 13, 2012 [↩]