DuPont delivers strong results in second quarter

15-Aug-2011 - USA

DuPont’s second-quarter 2011 earnings were $1.37 per share, up 17 percent versus $1.17 per share in the prior year, excluding significant items from both periods. Reported second-quarter 2011 earnings were $1.29 per share, including significant item charges of $.08 per share related to the acquisition. Reported second-quarter 2010 earnings were $1.26 per share. Sales increased 19 percent to $10.3 billion with 11 percent higher local prices, 2 percent higher sales volume, 3 percent currency benefit and a 3 percent net increase from portfolio changes. Sales in developing markets grew 29 percent and represent 30 percent of total sales.

Strong performances in Agriculture, Performance Chemicals and Safety & Protection, and the acquisition of Danisco contributed to a 20 percent increase in segment pre-tax operating income, excluding significant items. The company is on track versus its full-year 2011 productivity targets for fixed costs and working capital. Year-to-date fixed cost productivity totals more than $180 million.

“Our strong second-quarter sales growth across all segments and regions resulted from consistent global execution and customer-focused innovation,” said DuPont Chair and CEO Ellen Kullman. “We are increasing our earnings outlook for 2011 based on strong performance year–to-date and confidence in our business plans for the second half of the year. Longer term, we expect additional compelling growth opportunities across our businesses stemming from science-powered innovations and collaboration, including the integration of Danisco’s world-class enzymes, fermentation and specialty food ingredients capabilities with DuPont’s strong industrial biosciences and nutrition & health offerings.”

The company increased its full-year 2011 earnings outlook, excluding significant items, to a range of $3.90 to $4.05 per share. The increase reflects strong second-quarter results, the expectation for continued global economic growth and about $.05 per share full-year operating earnings from Danisco on an underlying basis. Prior guidance was a range of $3.65 to $3.85 per share, excluding the impact of Danisco. The company’s estimate for the impact of the Danisco acquisition on full-year reported earnings is now a reduction of $.18 to $.29 per share, versus the previous estimate of a $.30 to $.45 per share reduction. The current view is based on anticipated full-year Danisco operating earnings of about $.05 per share and significant item charges related to the acquisition estimated to be $.23 to $.34 per share. In addition to these Danisco charges, the company expects a $.03 per share significant item charge in the third quarter associated with a licensing agreement.

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