DuPont swings to $441m Q4 net profit on volumes, lower costs

26 January 2010 12:15  [Source: ICIS news]

LONDON (ICIS news)--US producer DuPont swung to a fourth-quarter net income of $441m (€313m) from the $629m loss reported for the corresponding quarter of 2008, helped by higher sales volumes, lower costs and currency benefits, the company said on Tuesday.

DuPont's third-quarter 2009 net income was $409m.

Excluding significant charges and gains, fourth-quarter 2009 net income was $402m versus $249m, the company said.

Fourth-quarter 2009 sales of $6.4bn were 10% higher than a year ago, with volumes up 10%. The increase was driven by a 34% increase in volume sales in Asia Pacific and Latin America.

DuPont said its sales had grown by more than 20% for titanium dioxide, electronic materials, performance polymers and seed products.

Pre-tax operating income from the business segments in the latest quarter was $798m, compared with a fourth-quarter 2008 pre-tax operating loss of $595m. The most significant turnarounds were in the performance materials and chemicals business segments.

Full-year 2009 net income was $1.76bn, 12.6% down on 2008. Sales were down 14.4% at $26.11bn.

DuPont said it remained committed to the financial targets announced in November, including a 20% compound annual earnings growth goal for 2009-2012 and a 2010 free cash flow target of greater than $1.5bn. Free cash flow in 2009 was $3.4bn.

It raised its earnings per share (EPS) guidance for the year to $2.15-$2.45 a share from $2.10-$2.40 a share.

Full-year 2009 EPS were $1.92 per against $2.20 in 2008.

"In 2010, we will continue the momentum generated from last year's aggressive cost-cutting and cash-generating actions," CEO Ellen Kullman said in an earnings statement.

"We remain confident in our performance outlook for 2010, based on improving economic conditions coupled with well-positioned and streamlined businesses,” she added.

($1 = €0.71)

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By: Nigel Davis
+44 20 8652 3214

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