Business News
3Q Business Segment Results
Wednesday 21. October 2009 - Lower Ag & Nutrition sales in the third quarter were partly offset by agriculture market share gains and strong seed pricing. The following summary of business results for each of the companys operating segments compares third quarter 2009 with third quarter 2008, for sales and pre-tax operating income (PTOI). All references to selling price changes are on a U.S. dollar basis, including the impact of currency.
Agriculture & Nutrition
Sales of $1.2 billion were down 5%, reflecting unfavorable currency impact, partly offset by agriculture market share gains and strong seed pricing.
Seasonal third quarter pre-tax loss was $113 million versus a loss of $21 million in the prior year, which included a $49 million gain on the settlement of soybean contracts. Current quarter earnings reflected continued spending for growth initiatives and higher input costs.
Coatings & Color Technologies
Sales of $1.5 billion were down 16%, primarily reflecting continued weakness in motor vehicle markets.
PTOI of $182 million was 4% lower, reflecting lower sales volumes and unfavorable currency, partly offset by lower variable costs, fixed cost reductions and pricing gains.
Electronic & Communication Technologies
Sales of $919 million were down 13%, reflecting 10% lower volume and 3% lower selling prices. Weak demand in consumer and general industrial markets offset increased demand in photovoltaics and packaging graphics.
PTOI of $125 million was down 9%, reflecting lower volumes and lower costs.
Performance Materials
Sales of $1.3 billion were down 24%, reflecting weak demand in major markets in all regions, particularly in general industrial and motor vehicle markets.
PTOI of $230 million was up versus a prior year loss of $91 million, which included hurricane-related charges of $216 million. The improvement also reflected lower cost partly offset by lower sales volume, unfavorable product mix and currency. Current quarter included $24 million of insurance recoveries related to the hurricane.
Safety & Protection
Sales of $1.0 billion were down 32%, reflecting a 22% volume decline primarily in industrial and construction markets. Pricing decreases reflected the pass-through of lower chemicals raw material costs.
PTOI of $93 million principally reflected lower market demand, partly offset by lower raw material costs, fixed cost reductions and pricing actions. Current quarter included a $26 million asset impairment charge.