DuPont posts Q3 net profit up 11% from hurricane-hit '08 quarter

20 October 2009 12:04  [Source: ICIS news]

LONDON (ICIS news)--DuPont has reported an 11% increase in third-quarter 2009 net profit from the hurricane-hit third quarter of 2008 on lower sales volumes but significantly lower costs, the US chemical major said on Tuesday.

The company posted a net profit of $409m, up from $367m in the same period last year, which included net hurricane-related charges of $146m.

DuPont continued to face challenging operating conditions, CEO Ellen Kullman said, but was seeing overall sequential improvement in its industrial businesses as market conditions begin to firm.

Sales were down 18% year on year at $6.0bn, with volumes 12% lower compared with the same period of last year.

In the company’s safety and projection businesses, sales were down 32% year on year, while they fell 24% in performance materials and 16% in coatings and colour technologies, the latter two segments hit hard by the globally depressed motor vehicles markets.

DuPont’s third-quarter segment pre-tax operating income was $757m, up from $682m for the third quarter of 2008, which included $227m in hurricane-related charges.

The company said that cost-reduction and productivity measures had lifted third-quarter 2009 pre-tax profits by $300m and brought year-to-date cost reductions to $900m versus a full-year goal of $1bn.

“We delivered on our commitment to shareholders, while navigating through some very difficult business conditions," Kullman said.

DuPont revised its full-year earnings guidance to $1.95-2.05 excluding significant items. Third-quarter earnings were $0.45 a share.

The outlook anticipates improving demand across key markets, DuPont said in a statement. Lower raw material costs and currency exchange rates would benefit earnings in the fourth quarter, it added.

For more on DuPont visit ICIS company intelligence
To discuss issues facing the chemical industry go to ICIS connect

By: Nigel Davis
+44 20 8652 3214

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly