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DuPont Reports First Quarter 2009 Earnings In-Line with Guidance

Published on 2009-04-22. Author : SpecialChem

DuPont's first quarter 2009 earnings were $.54 per share, in-line with guidance. Results reflect earnings from Agriculture & Nutrition and pharmaceuticals, strong companywide pricing and cost discipline, partly offset by the impact of a severe decline in global industrial demand.

  • The Agriculture & Nutrition segment performance was strong, with sales growth of 6 percent and earnings growth of 8 percent despite significant currency headwinds. Performance was driven by higher North American volumes and significant seed pricing gains.
  • DuPont increased its 2009 fixed cost reduction goal to $1 billion and reduced planned capital expenditures an additional $200 million, to $1.4 billion.
  • The company revised its full-year 2009 earnings outlook to a range of $1.70 to $2.10 per share, with the expectation of difficult market conditions continuing with the exception of global agriculture markets.
  • DuPont declared a second quarter dividend of $.41 per share, unchanged from the first quarter. This is the company's 419th consecutive dividend.

"Our strong first quarter performance in Agriculture & Nutrition and pharmaceuticals, combined with gains from our pricing discipline and cost and capital reductions, helped to offset the impact of the largest decline in industrial demand in decades," said DuPont CEO Ellen J. Kullman. "As we committed to do in December, we are addressing the more challenging economic conditions with further steps to aggressively manage costs, enhance productivity and operate even more efficiently."

"Our teams are working with urgency and agility to stay ahead of the worst global recession since the 1930s," Kullman said. "Our preemptive actions will preserve our strong cash generating capability, while positioning our businesses for improved profitability as global markets rebound."

The following is a summary of business results for each of the company's operating segments, comparing sales and PTOI (loss) for first quarter 2009 versus first quarter 2008. All references to selling price changes are on a U.S. dollar basis, including the impact of currency.

Agriculture & Nutrition

  • Sales of $3.1 billion were up 6 percent reflecting production agriculture price increases and North America and Europe seed volume gains, partly offset by currency.
  • PTOI was $852 million, up 8 percent, driven by higher sales, partly offset by significant unfavorable currency impact and increased input costs.

Coatings & Color Technologies

  • Sales of $1.2 billion were down 30 percent primarily reflecting broad-based volume declines across all regions and businesses.
  • The pre-tax loss of $19 million reflects lower sales volumes and unfavorable currency impact partly offset by fixed cost reductions and higher local prices.

Electronic & Communication Technologies

  • Sales of $696 million were down 32 percent reflecting 31 percent lower volumes and 1 percent lower selling prices. Lower volumes reflect significant de-stocking in supply chains for many electronic materials and general industrial markets.
  • The pre-tax loss of $54 million reflects the depressed sales volumes and higher input costs, partly offset by fixed cost reductions.

Performance Materials

  • Sales of $942 million were down 45 percent reflecting declines in major markets in all regions, precipitated by de-stocking and weak final demand, particularly in motor vehicle and general industrial end markets.
  • The pre-tax loss of $146 million reflects lower volume and higher raw material costs, partly offset by reductions in fixed costs.

Safety & Protection

  • Sales of $1.0 billion were down 24 percent reflecting an 18 percent volume decline and 5 percent lower selling prices. Volumes were down in all product lines, most significantly in North American and European motor vehicle, construction and general industrial markets.
  • PTOI of $72 million principally reflects the impact of lower sales volumes.

    Source: DuPont

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