WILMINGTON, Del., Jan. 26 /PRNewswire-FirstCall/ --
Highlights:
“Across the organization, DuPont delivered on its commitments in 2009,” said DuPont Chair and CEO Ellen Kullman. “We intend to emerge stronger in 2010 by building on the work we accomplished last year, with a focus on sales growth through market-driven innovation and operating leverage. We remain committed to compound annual growth targets of 10 percent for top-line and 20 percent for earnings through 2012.”
Global Consolidated Sales and Net Income
Fourth-quarter 2009 consolidated net sales of $6.4 billion were 10 percent higher than prior year, reflecting 10 percent higher volume, 3 percent lower local prices, a 4 percent positive impact from currency exchange rates and a 1 percent reduction from portfolio changes. The table below shows regional sales and variances versus fourth-quarter 2008.
Net income attributable to DuPont for the fourth-quarter 2009 was $441 million versus a $629 million loss in the prior year. Net income excluding significant items was $402 million versus a $249 million loss in the prior year. The improvement reflects significantly higher sales volume, lower variable cost and currency benefit.
Earnings Per Share
The table below shows year-over-year earnings per share (EPS) variances for the fourth-quarter.
Business Segment Performance
The table below shows fourth-quarter 2009 segment sales and related variances versus prior year.
* Segment Sales include transfers.
Reported pre-tax operating income (PTOI) for fourth-quarter 2009 was $798 million compared to a fourth-quarter 2008 pre-tax operating loss of $595 million. Segment PTOI (loss) excluding significant items is shown below.
* See Schedules B and C for a listing of significant items and their impact by segment.
** Includes a $63 million charge in other income relating to the timing of rebates and other sales deductions.
The following is a summary of business results for each of the company’s reportable segments, comparing the fourth-quarter 2009 with fourth-quarter 2008, for sales and PTOI, excluding significant items. All references to selling price changes are on a U.S. dollar basis, including the impact of currency.
Agriculture & Nutrition
Segment sales of $1.4 billion were up $143 million or 12 percent. Volume increased 9 percent, with increases in all regions. Selling prices were up 3 percent. Segment volumes reflect 25 percent higher seed volume, with a strong start to the North America and European seasons, and successful summer plantings in Argentina, Brazil, and South Africa. Seed sales were $465 million. Crop protection product volumes increased 5 percent, reflecting increased insecticide demand in Latin America. Food and nutrition products sales were up slightly, reflecting increased sales in North America. Segment PTOI seasonal loss of $97 million, improved $67 million, principally due to higher seed volumes.
Electronics & Communications
Segment sales of $582 million were up 22 percent versus fourth-quarter 2008 and 2 percent above pre-recession fourth-quarter 2007. Sales reflect 13 percent higher volumes and 9 percent higher prices (includes metals pass-through pricing) versus fourth-quarter 2008. Seasonal demand, growth in photovoltaics and a small amount of inventory rebuilding throughout the industry contributed to a strong quarter. PTOI of $61 million was up $32 million primarily due to significantly improved volume and mix.
Performance Chemicals
Segment sales of $1.3 billion increased $113 million, or 9 percent. The sales increase was led by 17 percent higher volumes, partly offset by lower prices. Volume increases primarily driven by recovery in the titanium dioxide market in all regions. Pricing decreases mostly reflected the pass-through of lower chemicals raw material costs. PTOI was $208 million, an improvement of $194 million. The increase primarily reflected lower raw material costs and higher volume.
Performance Coatings
Segment sales of $975 million increased $70 million, or 8 percent, principally reflecting higher selling prices. Volumes were 2 percent lower, reflecting continued industrial market weakness in developed regions, partly offset by higher demand in automotive OEM markets. PTOI was $70 million, up $151 million, reflecting lower raw material costs and aggressive fixed cost reductions.
Performance Materials
Segment sales of $1.4 billion increased $242 million, or 20 percent, principally reflecting 24 percent higher volumes led by improvement in automotive, industrial, consumer and electrical markets, with strong volume recovery in all regions, particularly Asia Pacific. Segment PTOI for the quarter was $174 million, an improvement of $303 million, reflecting strong volume and variable margin expansion as lower selling prices were more than offset by the benefits of sharply lower raw material costs.
Safety & Protection
Segment sales of $759 million decreased $75 million, or 9 percent, essentially all volume driven. Sales into automotive and consumer markets rebounded, while industrial and law enforcement markets continued to lag. PTOI was $135 million, an improvement of $48 million. The increase primarily reflected lower raw material costs and fixed cost reductions, partly offset by lower volume.
Additional segment information is available on the DuPont Investor Center website at www.dupont.com.
Outlook
DuPont remains committed to its 20 percent compound annual earnings growth goal for the 2009-2012 time period and 2010 free cash flow target of greater than $1.5 billion as announced November 2009. DuPont today increased its full-year 2010 earnings guidance to a range of $2.15 to $2.45 per share versus the previous guidance of $2.10 to $2.40 per share. Due to strong pension fund performance, the company now expects pension expense to be about $.10 per share, lower than originally anticipated. In addition, the company is estimating a first-quarter $.05 per share exchange loss resulting from devaluation of the Venezuelan currency.
“In 2010, we will continue the momentum generated from last year’s aggressive cost-cutting and cash-generating actions,” Kullman said. “We remain confident in our performance outlook for 2010, based on improving economic conditions coupled with well-positioned and streamlined businesses. Each one of our business units has clear targets, our leaders understand their accountability and our teams are poised to deliver in 2010.”
Use of Non-GAAP Measures
Management believes that certain non-GAAP measurements, such as free cash flow, are meaningful to investors because they provide insight with respect to ongoing operating results of the company. Such measurements are not recognized in accordance with generally accepted accounting principles (GAAP) and should not be viewed as an alternative to GAAP measures of performance. Reconciliations of non-GAAP measures to GAAP are provided in schedules C and D.
DuPont is a science-based products and services company. Founded in 1802, DuPont puts science to work by creating sustainable solutions essential to a better, safer, healthier life for people everywhere. Operating in more than 70 countries, DuPont offers a wide range of innovative products and services for markets including agriculture and food; building and construction; communications; and transportation.
Forward-Looking Statements: This news release contains forward-looking statements based on management’s current expectations, estimates and projections. All statements that address expectations or projections about the future, including statements about the company’s strategy for growth, product development, market position, expected expenditures and financial results are forward-looking statements. Some of the forward-looking statements may be identified by words like “expects,” “anticipates,” “plans,” “intends,” “projects,” “indicates,” and similar expressions. These statements are not guarantees of future performance and involve a number of risks, uncertainties and assumptions. Many factors, including those discussed more fully elsewhere in this release and in documents filed with the Securities and Exchange Commission by DuPont, particularly its latest annual report on Form 10-K and quarterly report on Form 10-Q, as well as others, could cause results to differ materially from those stated. These factors include, but are not limited to changes in the laws, regulations, policies and economic conditions, including inflation, interest and foreign currency exchange rates, of countries in which the company does business; competitive pressures; successful integration of structural changes, including restructuring plans, acquisitions, divestitures and alliances; cost of raw materials, research and development of new products, including regulatory approval and market acceptance; seasonality of sales of agricultural products; and severe weather events that cause business interruptions, including plant and power outages, or disruptions in supplier and customer operations. The company undertakes no duty to update any forward-looking statements as a result of future developments or new information.
CONTACT: Media, Anthony Farina, DuPont, +1-302-773-4418,
anthony.r.farina@usa.dupont.com; Investors, +1-302-774-4994
Web site: http://www.dupont.com/
