DuPont announced on Monday that it is cutting 1500 jobs from its "low growth" crop-protection and nutrition division and will plow the $100 million it will save into its "high growth" seeds business. The company is fighting Monsanto for market share, particularly in the corn seed market. In that vein, Monsanto's enhanced marketing capabilities seems to be gaining on DuPont's R&D. Monsanto's share of U.S. seed-corn sales has grown to 25% from 10% six years ago, while DuPont's has fallen to about 31% from 38% in 2000. 15,000 DuPont employees work in the agricultural division, out of a company total of 60,000. Analysts approve the move, especially in light of the company's competition with Monsanto.
• Sources: Press Release, AP , WSJ
• Related commentary: DuPont: Modifications Will Spur Growth , Tense Mating Dance Between Monsanto and D&PL Ends in a Merger, Delta & Pine Merger Deja Vu: Monsanto Hopes This Time is Different.
• Potentially impacted stocks and ETFs: DuPont (DD), Monsanto (MON) Competitors: American Pacific Corp (APFC), Syngenta (SYG). ETFs: iShares Dow Jones US Basic Materials (IYM), Vanguard Materials VIPERs (VAW), Materials Select Sector SPDR (XLB).
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