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DuPont Reports Strong First Quarter 2011 Financial Results

Published on 2011-04-27. Author : SpecialChem

First quarter 2011 consolidated net sales of $10.0 billion were 18 percent higher than the prior year, reflecting 9 percent higher volume, 8 percent higher local prices and a 1 percent net increase from portfolio changes.

First quarter 2011 net income attributable to DuPont increased 27 percent to $1,431 million versus $1,129 million in 2010. The increase reflects higher sales volume and selling prices, partly offset by a $171 million decline in Pharmaceuticals pre-tax income due to patent expirations. Fixed costs improved to 35 percent of sales from 37 percent in the first quarter 2010, with productivity actions tracking on plan for the full year.

Segment pre-tax operating income (PTOI) for first quarter 2011 was $2,125 million compared to first quarter 2010 PTOI of $1,803 million. The increase in PTOI principally reflects earnings improvements in all segments, partly offset by lower Pharmaceuticals income.

The following is a summary of business results for each of the company's reportable segments, comparing first quarter 2011 with first quarter 2010, for sales and PTOI. References to selling price are on a U.S. dollar basis, including the impact of currency.

Electronics & Communications - Sales of $0.8 billion were up 29 percent, with 20 percent higher selling prices, primarily pass-through of metals prices and 9 percent higher volume. Higher volume was driven by strong demand for photovoltaics and consumer electronics in Asia Pacific. PTOI of $111 million increased modestly, reflecting higher volume.

Performance Chemicals - Sales of $1.8 billion were up 27 percent, with 21 percent higher selling prices and 6 percent higher volume. Sales increased across all regions, especially in the United States and Asia Pacific. Higher selling prices stemmed from strong global demand for titanium dioxide, refrigerants and fluoroproducts. PTOI was $394 million, increasing $204 million due to higher selling prices and volume.

Performance Coatings - Sales of $1.0 billion were up 10 percent, reflecting 6 percent higher selling prices and 4 percent higher volume. Global automotive markets improved primarily due to a significant increase in North American auto builds. Strong demand continued in industrial coatings, particularly in the North American heavy-duty truck market. PTOI was $65 million, an improvement of $20 million versus prior year on strong sales and operating leverage.

Performance Materials - Sales of $1.7 billion were up 11 percent, with 7 percent higher volume, 6 percent higher selling prices and a 2 percent reduction from a portfolio change. Continued improvement in automotive, electronic, and packaging markets resulted in higher volume. PTOI was $288 million, up $58 million on higher selling prices and volume.

Safety & Protection - Sales of $1.0 billion were up 22 percent, with 14 percent higher volume and a 7 percent increase from a portfolio change. Growth came from increased demand for aramid and nonwoven products in industrial markets across all regions. PTOI was $145 million, up $43 million on higher volume and a portfolio change, partially offset by higher spending for growth initiatives.

Outlook

The company increased its full-year 2011 earnings outlook to a range of $3.65 to $3.85 per share from its previous range of $3.45 to $3.75. This revision reflects strong first quarter earnings and execution of the company's growth plans with the expectation of continued global economic growth. As previously announced, the planned Danisco acquisition could reduce 2011 earnings by $.30-$.45 per share on a reported basis.

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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