E.I. du Pont de Nemours & Co. (DD) Q3 2016 Results
We’re deep in the merger process with the big regulators
“We’re very deep into the process with the four big regulators, the EU, Brazil, China, and the U.S. We’re deep into those conversations. So I think we’ve done a good job explaining our end markets and our businesses to the regulators. We’ve taken a lot of time educating them on that. There are rumors out there, which I’m not going to comment on, but I was sure there will be some remedies at the right time. And we are pre-working on that and very focused at Dow and DuPont on understanding that so we’re in a position to move really quickly when we need to. And, by the way, just this whole comment, just to put it in on perspective on the regulatory side, remember, we are first in line. I think even the EU Commissioner commented on that, that we review things in the order that we get those, in a recent statement. And I would also comment, just to put this in perspective, sometimes we lose sight, when you put Dow and DuPont Ag together, we’re going to be a strong number two in seed – not a number one, the number two – and in crop protection we’re putting the number four and number five player together to create a number three player. And our goal obviously through that is to have increased innovation and capability to improve our pipeline and speed up our products, both on the crop side and on the seed side, so – and we’re very confident we can do that. But I just want to kind of put that whole thing into a perspective.”
Looks like housing and auto are dropping off a bit
“I mean, it looks like all forecasts say that housing is dropping off – at least from a start standpoint – dropping off some in the three-month window or rolling window – July, August, September, looks like there was a decline of about 1.5%. So not significant, but it looks like there’s a little bit of a rollover off of kind of that 1.1 million to 1.2 million starts. So kind of flat to down a little. So you might see a little bit there.
And then on the auto side of the business, it looks like auto builds are going to be down in the couple percent range going into next year. So that’s a little bit of a drop from the 5% to 6% that we’ve kind of been running through the year. So you might see a little there. However, by the way, our demand still looks good for autos, specifically in China on the Performance Materials side of the business. But we are modeling a little bit of a downdraft in those couple end markets.”
Still pretty challenging market in 2017 for farms. Favoring the soy market
“When we look at 2017, I think like others we’re predicting still a pretty challenging market as corn commodity prices continue to fall, and soybean’s a little bit unchanged. It’s favoring the soy market, and we are seeing some volatility in pricing in both of those.”