DuPont says demand for agricultural products contributed to increase in third quarter earnings
Post on: 2011-11-02 By: admin
DuPont says demand for agricultural products contributed to increase in 3rd-quarter earnings
ByRandall Chase, The Associated Press
This photo taken Aug. 31, 2011, shows the Dupont logo, displayed on a banner at the Dupont exhibit booth during the Farm Progress Show, in Decatur, Ill. Chemical maker DuPont said Tuesday, Oct. 25, 2011, strong demand for its agricultural products helped boost third-quarter earnings 23 percent. (AP Photo/Seth Perlman)
DOVER, Del. - Chemical maker DuPont said Tuesday that earnings increased by 23 per cent in the third quarter, boosted by strong demand for its agricultural products and price increases across the company's business segments and market regions.The company reported net income of $452 million, or 48 cents per share, for the period ended Sept. 30, up from $367 million, or 40 cents per share, for the same period a year ago, when the expiration of pharmaceutical patents lowered net income by 13 cents per share.Excluding one-time items, including costs associated with its acquisition of Danish food additives maker Danisco, DuPont reported earnings of 69 cents per share, beating the average estimate of 56 cents by analysts surveyed by FactSet.We executed very well, capitalizing on certain growth markets, said Ellen Kullman, chairwoman and CEO of Wilmington-based E.I. DuPont de NemoursCo.DuPont shares rose 10 cents at $46.19 in midday trading.Sales increased 32 per cent to $9.2 billion, largely due to higher selling prices and currency benefits. Analysts expected sales of $8.85 billion.Volume dipped slightly in all regions except Latin America, where DuPont saw volume growth of 17 per cent, but double-digit gains in local prices in all regions helped boost the company's bottom line.Revenue in the agricultural unit increased 41 per cent to $1.4 billion, with 26 per cent higher volumes and 15 per cent higher selling prices. DuPont said that reflected a strong, early start to the Latin American growing season. The company saw volume and price gains for its Pioneer corn and soybean seeds.DuPont's pricing power also was evident in the performance chemicals unit, where prices increased 29 per cent, driven by strong demand for fluoropolymers and titanium dioxide, a whitening pigment used in products ranging from paint and plastics to toothpaste.We sold every pound we could make ... The fundamentals of TiO2 are as healthy as ever, said Karen Fletcher, vice-president of investor relations.The acquisition of Danisco boosted performance in DuPont's nutrition and health unit, which saw revenue jump by $540 million to $844 million, and contributed $293 million in sales for the company's new industrial biosciences unit.DuPont is a far different company than it was just a few years ago, said Kullman, noting that the agriculture and nutrition and health units now account for almost one-third of sales, compared to about 25 per cent of sales three years ago.At the same time, demand remains strong for products such as titanium dioxide, with DuPont saying customers are willing to pay more for value. Pretax operating income for performance chemicals increased by $301 million to $593 million because of higher selling prices, the company said.We think that the fundamentals are still there, and that the market will basically dictate that, Kullman said when asked whether DuPont will be able to raise margins again next year.Based on its third-quarter results, DuPont narrowed its full-year earnings outlook to a range of $3.97 to $4.05 per share excluding significant items, the upper range of its previous guidance of $3.90 to $4.05 per share. Analysts expect $3.98 per share, on average.
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Article original from: http://www.canadianbusiness.com/article/53021--dupont-says-demand-for-agricultural-products-contributed-to-increase-in-third-quarter-earnings
