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DuPont's 4Q ’05 Earnings: Business Segment Performance

Published on 2006-01-25. Author : SpecialChem

DuPont on 24th Jan, 2006, reported that the fourth quarter 2005 earnings were USD 0.16 per share. This compares to fourth quarter 2004 earnings per share of USD 0.28. Fourth quarter earnings before significant items were USD 0.13 per share, compared to USD 0.37 per share in the fourth quarter 2004.

DuPont Business Segment Performance

Segment pretax operating income (PTOI) for fourth quarter 2005 was USD 393 million compared to USD 596 million in the fourth quarter 2004.

Agriculture & Nutrition

  • PTOI decreased USD 147 million with a current quarter seasonal loss of USD 272 million versus a USD 125 million loss in the prior year. The decline reflects 5 percent lower worldwide volumes and higher costs.
  • Fourth quarter sales of USD 0.9 billion were down 6 percent, principally reflecting lower insecticide demand in Asia and lower herbicide sales in the United States.
  • Cost of goods sold increased significantly as a result of higher raw material costs. Fixed costs were also higher due in part to a production disruption at the segment's crop protection chemicals plant in Brazil.
  • Nine new products were introduced during the quarter, including new herbicide registrations for cereals and specialties. One hundred sixty-five new products were introduced during 2005.

Coatings & Color Technologies

  • PTOI was USD 162 million versus USD 236 million earned in the prior year. PTOI declined 31 percent, primarily due to production and sales disruptions in the titanium dioxide business caused by Hurricane Katrina, and higher raw material costs across all businesses.
  • Fourth quarter sales were USD 1.5 billion, down 4 percent. U.S. dollar prices increased 3 percent, while volumes were 7 percent lower, primarily due to the Gulf Coast hurricanes.
  • Higher selling prices largely reflect local price improvements for titanium dioxide, refinish and OEM products, partly offset by a negative currency impact.
  • Sixty-five new products were launched during the quarter, including new waterborne basecoats for conversion from solvent to waterborne paint systems and an expanded line of inks. Three hundred sixty-two new products were introduced during 2005.

Electronic & Communication Technologies

  • PTOI was USD 87 million versus USD 93 million in the prior year, down 6 percent. The decline is primarily due to higher raw material and other costs.
  • Fourth quarter sales were USD 0.8 billion, up 5 percent. Sales growth reflects 1 percent higher USD prices and 4 percent higher volume.
  • Revenue growth reflects higher sales volumes for electronic materials and higher prices and volumes for fluoroproducts.
  • Seventy-six new products were introduced during the quarter, including new fluoropolymer films for photovoltaic and fuel cell applications. Two hundred eighteen new products were introduced during 2005.

Performance Materials

  • PTOI was USD 54 million versus USD 26 million in 2004 which included a USD 118 million litigation charge. Excluding this charge, PTOI declined 62 percent, primarily due to lower earnings from packaging and industrial polymers reflecting business interruptions resulting from the hurricanes and higher raw material costs.
  • Fourth quarter sales of USD 1.6 billion, increased marginally versus fourth quarter 2004, on a comparable business basis. Higher prices essentially offset lower volume.
  • Fifty-seven new products were launched during the quarter, including new packaging resins and new compounds for improved processing. One hundred eighty-four new products were introduced during 2005.

Safety & Protection

  • PTOI was USD 210 million versus USD 227 million in the prior year. The earnings decline was largely due to hurricane disruptions to production and sales, higher raw material costs, and increased spending for growth initiatives.
  • Fourth quarter sales of USD 1.3 billion were up 3 percent as 4 percent higher USD prices were partly offset by lower volume. The volume decline is largely attributable to the impact of hurricanes on Gulf Coast operations. Volumes grew in all businesses except industrial chemicals.
  • Twenty-four new products were introduced during the quarter, including new transformer applications for DuPont™ Nomex® and new products for medical packaging. Two hundred four new products were introduced during 2005.

Source: DuPont


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