January 27, 2010

DuPont posts Q4 profit on strong sales

Improved sales across global markets and lower raw material and energy costs have led to a fourth-quarter turnaround for DuPont.

DuPont reported a net income of US$441 million, compared to a loss of US$629 million for the fourth quarter of 2008.

Global sales increased 10% in the quarter to US$6.4 billion, led by stronger demand for titanium dioxide, electronic materials, seed products and performance polymers. Volumes were up in all regions, led by a 34% jump in Asia-Pacific markets, where sales topped levels seen prior to the global recession.

Net income excluding significant items was US$402 million, compared to a loss of US$249 million in the prior year.

Full year earnings were US$1.76 billion, compared to US$2 billion in 2008.

US sales declined 2% in the fourth quarter. Lower prices were partly offset by a volume increase of 4%. Overseas results also reflected lower local prices, as well as a 4% positive impact from currency exchange rates.

Volumes increased for four of the company's business units but were down 2% in performance coatings and 9% in the safety and protection segment.

DuPont's agriculture and nutrition unit, which has been of its few bright spots during the economic downturn, saw sales increase 12% to US$1.4 billion, reflecting 25% higher seed volume and 5% higher crop protection product volumes.

This positive result has prompted DuPont to increase its full-year 2010 earnings guidance to a range of US$2.15 to US$2.45 per share, up from its previous guidance of US$2.10 to US$2.40 per share.

CEO Ellen Kullman said DuPont cut fixed costs by more than US$1 billion last year and remains committed to compound annual growth targets of 10% for revenue and 20% for earnings through 2012.