13 December 2011 15:19 [Source: ICIS news]
HOUSTON (ICIS)--DuPont remains confident about its long-term growth, despite recent weakness in some of its markets, in particular polymers, CEO Ellen Kullman said on Tuesday.
"DuPont expects nearly $12bn (€9.1bn) of revenue from products introduced in the previous four years, roughly 30% of company sales in 2011,” Kullman told analysts during a webcast investor event.
“That demonstrates the power of our innovation," she added.
DuPont's growth strategy is aimed at opportunities in global food markets to help feed an increasing population, as well as energy markets to help reduce the world's dependence on fossil fuels, and environmental protection products, she said.
Kullman said about 75% of DuPont’s capital and research and development (R&D) expenditures are allocated to growth segments.
“As a consequence of this approach, our portfolio is shifting toward sustainable high-growth opportunities where innovation differentiates our company and creates value for our customers," she said.
The US chemical major on Tuesday also announced 2012 earnings per share guidance in the range of $4.20–4.40, including 17 cents/share of additional pension expense. The guidance reflects 7–12% earnings growth compared with 2011. Excluding the additional pension expense, earnings are projected to increase by 12–17%, the company said.
DuPont expects 2012 sales in the range of $40bn–42bn, it said.
Last week, DuPont lowered its full-year earnings per share guidance for 2011 to $3.87–3.95, from previous guidance of $3.97–4.05, mainly because of destocking across polymers and certain industrial supply chains that accelerated during the 2011 fourth quarter.
However, Kullman said on Tuesday that DuPont expects those trends to be “short-lived..., and restocking in 2012 with slow sequential growth to follow.”
Meanwhile, the outlook for DuPont’s seeds, nutrition and health, and industrial biosciences markets remains strong, she said.
“It really is a tale of two cities,” said Kullman. While conditions in “three or four” of DuPont’s markets turned weaker towards the end of 2011, others continued strongly, she said.
($1 = €0.76)
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