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DuPont Q2 up, Raises Earnings Forecast

Published on 2011-08-01. Author : SpecialChem

DuPont Delivers Strong Results in Second Quarter with earnings $1.37 per share, up 17 percent versus $1.17 per share in the prior year. The following is a summary of business results for each of the company's reportable segments, comparing second quarter 2011 with second quarter 2010, for sales and pre-tax operating income (PTOI). All references to selling price are on a U.S. dollar basis, including the impact of currency.

Electronics & Communications

Sales of $891 million were up 36%, with 27% higher selling prices, primarily pass-through of metals prices, and 9% higher volume. Volume growth was fueled by strong demand for photovoltaics and consumer electronics in Asia Pacific. PTOI of $103 million decreased $5 million reflecting increased spending for photovoltaics growth initiatives and extreme volatility of metals pricing which reduced PTOI by about $20 million.

Industrial Biosciences

Sales of $123 million and PTOI of $10 million primarily reflect the acquisition of Danisco's enzyme business. PTOI included approximately $2 million of amortization expense associated with the fair value step-up of intangible assets acquired as part of the acquisition.

Performance Chemicals

Includes Titanium Technologies and Chemicals & Fluoroproducts businesses

Sales of $2.0 billion were up 27% with 28% higher selling prices and 1% lower volume. Sales increased substantially across all major regions. Higher selling prices stemmed from strong global demand for titanium dioxide, refrigerants, fluoroproducts and industrial chemicals, and more than offset raw material increases. Lower volume reflects weather-related supply disruptions in industrial chemicals. PTOI was $503 million, increasing $229 million on strong sales performance.

Performance Coatings

Sales of $1.1 billion were up 15%, with 14% higher selling prices and 1% higher volume. Higher selling prices reflect pricing actions across all market segments to offset higher raw material costs along with a favorable currency impact. Strong demand continued in industrial coatings, particularly in North American heavy-duty truck markets. PTOI of $73 million decreased slightly as higher sales were offset by higher raw material, energy and freight costs.

Performance Materials

Includes Packaging & Industrial Polymers and Performance Polymers businesses

Sales of $1.7 billion were up 11%, with 14% higher selling prices, partially offset by 2% lower volume and a 1% reduction from a portfolio change. Ongoing demand in electronic, packaging and automotive markets led to favorable pricing in all regions. Lower volume reflects supply constraints due to production outages, as well as supply chain disruptions as a result of the Japan earthquake. PTOI of $254 million decreased slightly due to the absence of a $27 million benefit from a gain on the sale of a business and an insurance recovery in the prior year and lower volume, partially offset by higher selling prices.

Safety & Protection

Includes Building Innovations, Protection Technologies and Sustainable Solutions businesses

Sales of $1.0 billion were up 21%, with an 8% increase from a portfolio change as a result of the MECS acquisition, 7% higher volume and 6% higher selling prices. Higher volume reflects continued growth from increased demand for aramid and nonwoven products in industrial and public sector markets across all major regions. Higher selling prices primarily reflect pricing actions taken to offset increases in raw material costs. PTOI of $143 million increased significantly, primarily driven by the portfolio change and a favorable currency impact, partially offset by higher spending for the Kevlar® expansion at Cooper River.

About DuPont

DuPont is a science-based products and services company. Founded in 1802, DuPont puts science to work by creating sustainable solutions essential to a better, safer, healthier life for people everywhere. Operating in more than 90 countries, DuPont offers a wide range of innovative products and services for markets including agriculture and food; building and construction; communications; and transportation.

Source: DuPont


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