24 February 2010 17:42 [Source: ICIS news]
HOUSTON (ICIS news)--DuPont anticipates at least 12% sales growth in its performance polymers segment in 2010 through new applications and an emphasis on emerging markets, the US producer said on Wednesday.
In a teleconference with investors, the company pointed to growth through new applications such as its Hytrel thermoplastic elastomers, which have been adopted for key railway infrastructure projects in ?xml:namespace>
In addition, the company said the trend toward light-weighting in the global automobile industry would work to its benefit, as more auto producers opt to replace metal with high-performance plastics in under-the-hood components, DuPont said.
DuPont also noted that it had a broad portfolio of renewably-sourced engineering resins, which could be to its benefit as more countries stress environmental benefits.
Overall, the company expects the segment to be fuelled by growth in emerging markets, economic recovery, new products and continued cost-cutting initiatives, DuPont said.
Additionally, the company said the segment should deliver about 10% compounded annual sales growth rate while also increasing its pre-tax operating income margin, without specifying a percentage targeted for that increase.
The performance polymers business comes off strong momentum, with more than 20% year on year sales growth in the 2009 fourth quarter, according to the company's most recent earnings release. DuPont also raised its overall earnings per share (EPS) guidance for 2010 at that time.
DuPont did not immediately respond to a request for comment on the business' 2009 sales.
Shares of DuPont rose 39 cents, or 1.2%, to $34.09/share in mid-day Wednesday trading on the New York Stock Exchange.
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.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|