Business News

DuPont: Third Quarter 2008 Business Segment Performance

Wednesday 22. October 2008 - The following are business segment highlights comparing sales and pre-tax operating income (PTOI) for third quarter 2008 versus third quarter 2007.

Agriculture & Nutrition
Sales grew 22 percent to USD 1.3 billion due to herbicide pricing, strong demand for fungicides and insecticides in Brazil, increased seed share and acres in Brazil, and strong demand for oilseeds in Europe. Pricing gains and favorable currency across the segment more than offset crop protection portfolio changes.
Seasonal third quarter pre-tax operating losses improved from USD 96 million in the prior year to the current USD 21 million. The USD 75 million PTOI increase is principally due to higher sales and a USD 49 million gain on the settlement of soybean contracts, partly offset by spending for growth initiatives. Third quarter 2007 included a USD 25 million benefit from a contract termination payment.
Coatings & Color Technologies
Sales of USD 1.8 billion were up 7 percent. Higher USD selling price and volume growth in Asia and Latin America more than offset lower volumes in North America and Europe.
PTOI of USD 190 million was down 7 percent. Cost productivity, pricing improvements, and favorable currency only partially offset the impact of weak automotive and housing markets and higher raw material, energy and freight costs.
Electronic & Communication Technologies
Sales grew 13 percent to USD 1.1 billion, with strength in fluoropolymers and microcircuit materials for photovoltaic applications partially offset by weakness in automotive and consumer electronics. Strong sales in Asia were moderated by softening demand in Europe.
PTOI of USD 137 million was essentially flat versus last year as increased revenue was offset by higher ingredient costs and growth investments for photovoltaics.
Performance Materials
Sales grew 3 percent to USD 1.7 billion, with price gains offsetting lower demand. Volume decline reflects market softness and impact of the hurricanes.
A USD 91 million pre-tax operating loss included a USD 216 million hurricane charge. Excluding this charge, PTOI declined 36 percent to USD 125 million due to weak markets, weather-related business interruptions and rising raw material costs that were not fully offset by higher prices.
Safety & Protection
Sales of USD 1.5 billion were up 9 percent versus the prior year quarter. Pricing gains particularly in chemical products, favorable currency and broad-based growth in emerging market volumes were tempered by weakness in the housing market.
PTOI of USD 251 million was down 20 percent. Earnings growth in chemicals and services was more than offset by lower earnings due to weak housing markets and growth investments in Kevlar and Nomex expansions.