“DuPont’s market-driven science and commitment to innovation and productivity are winning in key markets, despite economic headwinds early in the first quarter,” said DuPont Chair and CEO Ellen Kullman.
“Around the world, we are bringing our science closer to local markets by collaborating with customers and partners in our new DuPont Innovation Centers. We are prioritizing our R&D portfolio to deliver food, energy and protection solutions for the world’s growing population.”
DuPont’s first quarter 2012 earnings, before significant items, were USD 1.61 per share versus USD 1.52 per share in 2011. Reported earnings per share were USD 1.57 versus USD 1.52 in 2011. Sales of USD 11.2 billion were up 12% versus the prior year. This reflects 8% higher local prices, 1% currency headwind, 2% lower volume and 7% net benefit from portfolio changes. Sales in developing markets grew 15%.
Segment pre-tax operating income, excluding significant items, increased USD 252 million, or 12% versus the prior year, principally due to Agriculture, Performance Chemicals and the benefit of prior-year acquisitions in Nutrition & Health and Industrial Biosciences.
Agriculture delivered 16% higher sales and an 18% increase in pre-tax operating income, excluding significant items, versus last year’s first quarter. This reflects strong global business performance and an early start to the North American and European selling seasons.
The company’s productivity initiatives continued on track with improvements of approximately USD 100 million each for fixed costs and working capital.
DuPont reaffirmed its full-year earnings outlook range of USD 4.20 to USD 4.40 per share, which represents 7 to 12% growth versus 2011, excluding significant items.
“DuPont’s market-driven science and commitment to innovation and productivity are winning in key markets, despite economic headwinds early in the first quarter,” said DuPont Chair and CEO Ellen Kullman.
“Around the world, we are bringing our science closer to local markets by collaborating with customers and partners in our new DuPont Innovation Centers. We are prioritizing our R&D portfolio to deliver food, energy and protection solutions for the world’s growing population.”
First quarter 2012 consolidated net sales of USD 11.2 billion were 12% higher than the prior year, including 7% attributable to portfolio changes. Local prices were 8% higher with increases in all regions. The 2% decline in total company volume principally reflects strong Agriculture segment volume gains in all regions offset by lower volume for most segments in Asia.
First quarter 2012 net income attributable to DuPont was USD 1,488 million versus USD 1,431 million in the first quarter 2011. Excluding significant items, net income attributable to DuPont was USD 1,520 million versus USD 1,431 million in the prior year. The improvement principally reflects earnings growth in Agriculture and Performance Chemicals and income from a prior-year acquisition. Higher selling prices more than offset increased spending for sales, marketing and research and development, and higher costs for raw materials, energy and freight.
Segment pre-tax operating income (PTOI), excluding significant items, increased 12% to USD 2,377 million, largely driven by higher earnings in Agriculture, Performance Chemicals and acquisition-related improvements in Nutrition & Health and Industrial Biosciences.
Agriculture – Sales of USD 4.1 billion were up USD 576 million, or 16%, with 8% price and 8% volume gains. Seed sales growth reflects strong global performance with robust North American corn sales, a strong, early start to the European season and commercial success in Brazil’s Safrinha season. Crop Protection product sales growth was underpinned by particular strength in insect control product volumes and price gains across the portfolio. PTOI of USD 1.3 billion improved 18% on higher volume and price, offset in part by input cost increases and unfavourable currency impact.
Electronics & Communications – Sales of USD 677 million were down 17% on 18% lower volume.
Sales reflect continued soft demand in photovoltaics, partially offset by increased demand for smart phones and tablets. PTOI of USD 33 million declined from lower volume and plant utilization.
Industrial Biosciences – Sales of USD 288 million and PTOI of USD 41 million reflect the acquisition of Danisco’s enzyme business. PTOI includes USD 5 million of amortization expense associated with the fair value step-up of acquired intangible assets.
Nutrition & Health – Sales of USD 808 million and PTOI of USD 83 million reflect the acquisition of Danisco’s speciality food ingredients business. PTOI includes USD 21 million of amortization expense associated with the fair value step-up of acquired intangible assets.
Performance Chemicals – Sales of USD 1.9 billion were up 6%, with 16% higher selling prices and 10% lower volume. Higher selling prices more than offset higher raw material costs. Lower volume reflects continued softness in titanium dioxide, particularly in Asia Pacific. Global demand for titanium dioxide increased sequentially. PTOI of USD 512 million increased USD 118 million on higher selling prices.
Performance Coatings – Sales of USD 1.1 billion were up 6% on higher selling prices. Higher selling prices across all regions and market segments offset higher raw material costs. Continued strong demand in OEM motor vehicle and industrial coatings, particularly in the North American heavy duty truck market, was offset by softening in refinish primarily in southern Europe. PTOI of USD 87 million increased on higher selling prices, mix enrichment and continued productivity actions.
Performance Materials – Sales of USD 1.6 billion were down 6%, with 10% lower volume and a 2% reduction from a portfolio change partially offset by 6% higher selling prices. Demand improved in the automotive market, particularly in North America, but was more than offset by continued softness in industrial and electronics markets. Higher selling prices offset higher raw material costs. PTOI of USD 240 million decreased due to lower volume.
Safety & Protection – Sales of USD 941 million were down 2%, with 5% lower volume, partially offset by 3% higher selling prices. Volume was lower on continued softness in industrial markets.
Higher selling prices reflect value-based pricing. PTOI of USD 100 million decreased on lower volume and higher spending for growth initiatives.
DuPont reaffirms its full-year 2012 earnings outlook of USD 4.20 to USD 4.40 per share, an increase of 7 to 12% versus 2011, excluding significant items.