US housing/auto downturn hits DuPont in Q2

24 July 2007 12:40  [Source: ICIS news]

LONDON (ICIS news)--The US housing and auto industry downturn has hit DuPont's coatings and safety product businesses hard but company-wide operating profits in the second quarter were 6% higher at $1.6bn, driven by volume growth abroad, the company said on Tuesday.

Second-quarter sales were up 6% at $7.9bn from the same period last year, with volumes outside the US up 4% but down in the domestic market.

Earnings per share for the quarter were up 3% at $1.04 compared with a year ago if a $0.03 gain in the 2006 second quarter is excluded.

Net income as reported was 0.3% lower at $972m (€700m).

DuPont said the underlying year-on-year improvement reflected higher local prices, favourable currency impacts and volume growth outside the US as well as higher income from pharmaceuticals.

Pharmaceuticals pre-tax operating income in the quarter was 21% higher at $241m. Operating profit for performance materials, which include the performance in packaging industrial polymers and elastomers, was up 19% at $227m.

“We are seeing the benefit of our global presence - capitalising on strong routes to market in developing countries and building on our market-leading positions for businesses that serve multiple industries,” said CEO Chad Holliday.

He added that the company’s market drive and cost productivity gains would help deliver a reaffirmed full year earnings guidance of about $3.15 a share, excluding a $0.06 per share charge made in the first quarter of this year.

Growth would be driven by business outside the US, higher local selling prices and productivity gains, the company said.

It expected continued softness in US housing, higher feedstock costs and a higher base tax rate compared with last year.

($1 = €0.72)

By: Nigel Davis
+44 20 8652 3214

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