DuPont de Nemours Inc (NYSE:DD) Q4 2014 Earnings Conference Call - Final Transcript
Jan 27, 2015 • 09:00 am ET
already up on that platform, that's where -- and let me just use the ag company as an example. Their ag business is on the platform, if we can translate ourselves on to that platform, that's where there would be cost savings or I guess to back that up, if DuPont would have stayed on its own of course over the next couple of years getting that platform up and running that's where more costs would have come out of the Company, mostly in the G&A area. But we will get that benefit quicker in the merger if we can merge on to that platform. The teams have already met on that a couple of times. I actually sat in one of those meetings actually up in Midland at the Dow corporate office with the teams and we're feeling very bullish about that prospect to lean on to that platform.
And just for Jim, Jim expectations for crop chemical pricing in 2016 year-over-year?
It is going to continue to be a pretty challenging market where we've got some inventory carryovers that we're dealing with both in Latin America, lowering lower insect pressure that we saw here in the fourth quarter and the impact of insect protected varieties of soybeans that are out there. I think in North America, we look at the market in general and see that it will be another challenging environment. We do have some new product launches that will be coming out, our fungicide and our insecticide, so that will help us from a mix standpoint.
And our next question is from Vincent Andrews from Morgan Stanley.
Thanks, two questions. First, you talked about getting a lot of local pricing in the seed business, in both North America and South America but your remarks in the slide deck as well as some competitor commentary talk about is very competitive environment. So, I was wondering if you can reconcile, it sounds like you are expecting to see net pricing gains but you are also seeing some competition; so what do you see going on in the marketplace?
Yes, thanks. Fourth quarter, you saw some of the impact of the pricing actions that we took primarily in our crop protection business in Latin America and that was largely that to mitigate the currency impact. We also look forward; we've got new genetics, something in North America. So, I look at our pricing book year-over-year for like products. We're about flat, and you add to that the conversion to T Series soybeans in North America and the new genetics in corn and plus the launch, the continued launch of our products like Leptra in Brazil. That Leptra ramp up in Safrinha was good but in summer corn, could be one of the largest ramp ups that we've had in our history. So, it's going to be tough, it will be competitive but we feel good about the lineup that we have going forward.
And then separately in Performance Materials,