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DuPont Business Segment Performance - Third Quarter 2006

Published on 2006-10-25. Author : SpecialChem

As announced, Segment pretax operating income (PTOI) for third quarter 2006 was USD 900 million versus USD 545 million in the prior year. Excluding a current quarter benefit of USD 50 million for initial insurance recoveries, and prior-year charges of USD 146 million for hurricane damages, PTOI was USD 850 million versus USD 691 million, up 23 percent.

Agriculture & Nutrition

Third quarter seasonal losses increased versus prior year by USD 24 million reflecting USD 30 million lower sales and higher cost of goods sold, partly offset by a gain on an asset sale. Third quarter sales of USD 1.0 billion were down 3 percent. Higher sales for sulfonylurea products in cereals markets and share gains in corn and soybeans in Brazil were offset by southern hemisphere order timing and lower sales of soy protein products in the United States.

Coatings & Color Technologies

PTOI was USD 276 million including a USD 43 million initial insurance recovery, versus prior year PTOI of USD 26 million which included a USD 113 million hurricane charge. Excluding these items, earnings improvement reflects increases in titanium dioxide sales and margin improvement in all coatings product lines. Third quarter sales were USD 1.6 billion, up 8 percent reflecting 5 percent higher volume and 3 percent higher USD selling prices. Higher titanium dioxide and refinishes volume more than offset lower OEM coatings volume.

Electronic & Communication Technologies

PTOI was USD 135 million versus USD 145 million in the prior year reflecting lower results for fluorochemicals and analog proofing product lines. Third quarter sales were USD 1.0 billion, up 4 percent on 2 percent higher volume and 2 percent higher USD selling prices. Growth was primarily driven by increased demand in Asia for electronic materials.

Performance Materials

PTOI was USD 172 million versus USD 68 million in 2005 as higher prices and volume, and lower fixed costs in the engineering polymers, elastomers and packaging product lines more than offset higher raw material costs. Third quarter sales of USD 1.7 billion increased 13 percent, reflecting 6 percent higher volume and 7 percent higher USD selling prices. Sales increased in all regions.

Safety & Protection

PTOI was USD 292 million, including USD 7 million from an initial insurance recovery, versus USD 256 million in the prior year, which included a USD 31 million gain on an asset sale and a USD 22 million hurricane charge. Excluding these items, earnings increased 15 percent due to higher sales and disciplined fixed cost control. Third quarter sales of USD 1.4 billion were up 11 percent, reflecting 8 percent higher USD prices and 3 percent higher volume.

Source: DuPont

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