(Reuters) - DuPont reported a steeper-than-expected 3 percent fall in quarterly revenue as its agriculture business sold fewer seeds, herbicides and insecticides.
Operating earnings at the agriculture unit, DuPont's biggest, fell 5 percent to $1.44 billion, hurt by a fall in seed sales, lower corn plantings in Brazil and North America, and fall in herbicide sales in North America.
DuPont, the largest U.S. chemical maker by market value, is focusing on its high-margin agriculture business, besides food, specialty materials and alternative energy to shield itself from volatile commodity prices.
As part of that strategy, the company is hiving off its performance chemicals unit, which has weighed on results since 2012 due to weak prices for a white pigment used in toothpastes, sunscreens and a host of other products.
Operating earnings in the business, which also makes materials used in non-stick cookware and refrigerants, fell 20 percent in the first quarter.
Net income attributable to DuPont dropped to $1.44 billion, or $1.54 per share, in the quarter ended March 31, from $3.35 billion, or $3.58 per share, a year earlier.
Operating earnings were $1.58 per share.
Revenue fell nearly 3 percent to $10.13 billion, missing market estimates of $10.45 billion, according to Thomson Reuters I/B/E/S.
The 57 percent fall in net income was attributable to the sale of DuPont's performance coating business, which added almost $2 billion to earnings in the year-earlier quarter.
DuPont sold the business, which supplies vehicle and industrial coating systems, to Carlyle Group
Nelson Peltz's Trian Fund Management disclosed a stake in DuPont in last year's summer, saying the stock was undervalued.
But Peltz did not say how he sought to increase value, though many Wall Street analysts speculated he sought a breakup of the company or spinoff of major units.
DuPont unveiled a $5 billion share repurchase program earlier this year.
Monsanto, the leading developer of genetically engineered corn, soybeans and other crops, reported higher-than-expected quarterly earnings earlier this month as its corn and soybean businesses expanded globally.
(Reporting by Swetha Gopinath in Bangalore; Editing by Don Sebastian)
