DuPont Q3 profits up on strong sales outside US

23 October 2007 12:40  [Source: ICIS news]

LONDON (ICIS news)--DuPont on Tuesday reported a 2% year-on-year increase in its third quarter pre-tax operating income (PTOI) to $916m (€645m), driven by stronger sales outside the US market, said the chemicals major.

 

Sales rose 6% to $6.7bn. Excluding portfolio changes, sales were up 7% reflecting 3% volume growth, 2% higher local selling prices and 2% currency benefit.

 

DuPont increased its 2007 forecast for earnings per shares (EPS) excluding significant items from $3.15 to a range of $3.15-$3.20, expecting continued strong sales outside the US in the fourth quarter.

 

“DuPont generated solid operating leverage and 20 % earnings per share growth in the third quarter,” said CEO of the Wilmington, Delaware-based company, Charles Holliday

 

“Our performance reflects the concentrated actions of our employees to execute our growth strategies and productivity initiatives, which overcame the challenges of higher cost ingredients and lower US demand,” he added.

 

The company’s third quarter EPS were $0.56 compared with $0.52 in the same period last year. Excluding significant items, EPS increased 20% to $0.59 from $0.49 in the third quarter of 2006.

 

Agriculture and nutrition PTOI improved by 38%in the third quarter to a loss of $96m, with sales 21% higher at $1.1bn.

 

DuPont said strong sales in Latin America and Europe and restructuring benefits were offset by reinvestments on the company’s seed business.

 

The coatings and colour technologies segment reported a 27% drop in PTOI to $204m with improved earnings in OEM coatings offset by lower sales to US markets. Segment sales increased 2% to $1.6bn.

 

Electronic and communication technologies increased PTOI by 5% to $138m driven by growth in packaging graphics.

 

Sales in the segment were up 5% to $935m mainly due to volume growth in fluoroproducts and packaging graphics and pass-through of higher metal prices, said DuPont.

 

The performance materials segment increased PTOI by 16% to $196m, with sales 6% higher at $1.7bn. Higher sales were primarily due to higher US dollar selling prices but offset by lower volumes.

 

PTOI in the safety and protection segment was up to $313m.

 

“This performance places us firmly on track to achieve our 2007 outlook and sets the stage for continued growth in 2008,” Holliday said.

 

“While uncertainties remain in the global economy, we are confident in our ability to deliver solid earnings growth next year,” he added.

 

DuPont forecasts 5-10% growth in EPS for 2008 from its expected 2007 earnings of $3.15-3.20 per share.

 

“Looking beyond 2008, DuPont is well positioned to capitalise on exciting growth opportunities in markets such as energy efficiency, agriculture productivity, renewable energy, and safety and security,” Holliday said.

 

DuPont shares closed on Monday down 30 cents at $46.57.

 

($1 = €0.71)

By: Mark Watts
+44 20 8652 3214

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