US DuPont Q2 profits down, life sciences offset industrial weakness

24 July 2012 12:01  [Source: ICIS news]

LONDON (ICIS)--DuPont’s second quarter net profits were 3.3% lower year on year at $1.19bn (€976m) as its life science and agriculture businesses offset weakness in some industrial and public sector markets, the major chemicals and science based group said on Tuesday.

Sales were up 7.2% at $11.0bn on 1% lower volumes and 6% higher prices in local currencies.

Business segment operating income was up 13.0% at $2.16bn excluding pharmaceuticals and significant charges and gains. Agriculture and performance materials profits were higher and the acquisition of life-sciences group Danisco in 2011 benefited the nutrition & health and industrial biosciences businesses.

DuPont saw profits drop by 27.1% in its electronics & communications segment and by 11.2% in safety & protection. Demand and sales were soft in photovoltaics, it said, while sales volumes for its safety & protection products were hit by lower public sector demand and what it called “continued softness” in industrial markets.

“Our agriculture, food and bioscience businesses are performing exceptionally well globally, and our advanced materials businesses are achieving solid results despite slower growth in some key markets and continued weakness in Europe,” CEO Ellen Kullman said.

DuPont said it expects full year earnings to be towards the lower end of its previous outlook at $4.20 to $4.40 a share, excluding significant items, due to macroeconomic and currency uncertainties as well as a higher tax rate. Second quarter 2012 earnings were $1.48 a share from $1.37 a share in the 2011 second quarter, excluding significant items in both periods.

($1 = €0.82)

By: Nigel Davis
+44 20 8652 3214

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