Industry News

Second Quarter 2007 Business Segment Performance of DuPont

Published on 2007-07-25. Author : SpecialChem

As reported business segment pre-tax operating income (PTOI) for the second quarter of 2007 grew 6 percent to USD 1.6 billion from USD 1.5 billion in the second quarter of 2006.

Agriculture & Nutrition

Sales of USD 2.1 billion grew 7 percent driven by strong U.S. seed corn and cereal herbicides sales. These gains were partially offset by lower sales of soybeans and cotton herbicides due to reduced acres in North America. PTOI was USD 428 million versus USD 430 million in the second quarter 2006. Strong results in global crop protection products and North American seed corn were offset by lower soybean volumes and USD 33 million of growth investments. These investments were made to accelerate biotechnology trait development, to more rapidly integrate existing traits into leading germplasm and to strengthen seed sales coverage.

Coatings & Color Technologies

Second quarter 2007 sales of USD 1.7 billion grew 5 percent reflecting 4 percent higher USD selling prices and 1 percent higher volume. Increased sales of refinish coatings and titanium dioxide outpaced the negative impact of the weak U.S. auto and housing markets. PTOI was USD 226 million, essentially equal to the prior year. Fixed cost reductions in OEM coatings and strong international sales were offset by weakness in U.S. auto and housing markets and increased ingredient and transportation costs.

Electronic & Communication Technologies

Sales grew 4 percent to USD 979 million as volume growth in fluoroproducts and packaging graphics, favorable currency impact, and gains in photovoltaic markets were largely offset by lower refrigerant pricing and weakness in certain cell phone and semiconductor supply chains. PTOI was USD 176 million in the quarter and included the benefit of a USD 25 million pre-tax inventory valuation adjustment. The weakness reflects lower refrigerants pricing and softness in certain electronic materials markets, primarily for cell phones.

Performance Materials

Sales grew 8 percent to USD 1.7 billion reflecting higher local selling prices and a favorable currency impact. Volume growth in Europe and Latin America offset lower demand in North America. PTOI increased 19 percent to USD 227 million primarily due to strong gains in the segment’s packaging, industrial polymer and elastomer product lines.

Safety & Protection

Sales of USD 1.5 billion were up 4 percent reflecting a 4 percent increase in USD selling prices. Higher sales of aramids and construction materials outside the United States were offset by lower sales in U.S. housing markets. PTOI increased 3 percent to USD 318 million, principally reflecting strong earnings growth in aramid products, largely offset by lower earnings from U.S. housing markets, spending for hybrid membrane technology and capacity expansions in Kevlar® and Nomex®.

Source: DuPont

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