DuPont Q3 net income falls 10.2% amid lower pharma earnings

26 October 2010 12:29  [Source: ICIS news]

LONDON (ICIS)--The stronger growth that DuPont experienced in chemicals, coatings, materials and electronics in the third quarter could not offset the impact of patent expirations on pharmaceuticals, the diversified US-based producer said on Tuesday.

DuPont said its attributable net income for the third quarter fell 10.2% year on year to $367m (€264.2) as a result of lower pharmaceutical earnings.

Pre-tax profits from the business segments excluding pharmaceuticals were up 33% from the 2009 third quarter, the company said.

Stronger sales volumes lifted the third-quarter revenues by 17% year on year to $7.0bn, with higher growth in the electronics and communications and performance chemicals businesses.

DuPont raised its full-year earnings guidance as a result of the better-than-expected performance in the first three quarters of the year.

“DuPont's market focus and science-based innovations helped drive outstanding sales growth, with all business segments and regions contributing,” said DuPont chair and CEO Ellen Kullman.

“Our deep customer engagement and disciplined execution are gaining traction toward achieving our long-term growth targets."

Pre-tax operating income across most of the company’s business segments were substantially higher in the quarter.

Profits from electronics and communications were up 63.6% year on year at $126m and performance chemicals profits were up 41% at $292m. The performance chemicals increase was driven by stronger demand in all regions and across most market segments, particularly in titanium dioxide, fluoropolymers and industrial chemicals, DuPont said.

A deeper quarterly loss of $181m was reported for the agriculture and nutrition segment, but DuPont said this reflected investments and the impact of divested businesses.

The company's pharmaceuticals profits more than halved to $111m from $266m.

DuPont said it expected full-year earnings per share (EPS) of $3.10, excluding significant items, compared with a previous guidance range of $2.90-$3.05 per share.

“The increased outlook reflects strong third-quarter result and expectations for sustained demand in key global markets, continued pricing momentum and benefits from ongoing productivity,” DuPont said.

It also assumes full year pre-tax income of about $480m from pharmaceuticals .

($1 = €0.72)

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By: Nigel Davis
+44 20 8652 3214

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