Packaging

4Q 2010 Business Segment Performance

Monday 31. January 2011 - See how all business segments contributed to global growth in the fourth quarter.

The following summary includes business results for each of the company’s reportable segments, comparing the fourth-quarter 2010 with fourth-quarter 2009, for sales and pre-tax operating income
(PTOI), excluding significant items. All references to selling price changes are on a U.S. dollar basis, including the impact of currency.

Agriculture & Nutrition
Includes Crop Protection, Pioneer Hi-Bred and Nutrition & Health businesses
Fourth quarter 2010 sales of $1.5 billion were up 13%, reflecting higher volume. Increased sales primarily reflect a strong start to the North American season, an increase in Latin America corn sales, an increase in Brazil soybean volume, and higher sales for crop protection products across all regions, led by continued expansion of Rynaxypyr insecticide. PTOI for the fourth quarter was a seasonal loss of $117 million compared to a loss of $97 million in the fourth quarter 2009, reflecting continued growth investments. .
Electronics & Communications
Fourth quarter 2010 sales of $0.8 billion were up 33%, reflecting 24% higher volume and 9% higher selling prices, primarily pass-through of metals prices. Higher volume was driven by growth in all regions, particularly in Asia Pacific, and strong demand across most market segments, especially photovoltaics. PTOI of $98 million was up $37 million reflecting substantially higher volume.
Performance Chemicals
Includes Titanium Technologies and Chemicals & Fluoroproducts businesses
Fourth quarter 2010 sales of $1.7 billion were up 26%, principally reflecting 13% higher volume and 14% higher selling prices. Sales increased across all regions, especially in North America and Asia Pacific. Higher selling prices primarily reflect favorable pricing for titanium dioxide. PTOI was $315 million, an improvement of $107 million reflecting higher selling prices and volume.
Performance Coatings
Fourth quarter 2010 sales of $1.0 billion were up 3%, reflecting 4% higher volume, while selling prices declined 1% due to unfavorable currency impacts. Results reflect continued strengthening in industrial coatings, particularly the North American and European heavy duty truck markets, and modest growth in global automotive markets, most significantly in North America. PTOI was $71 million, essentially flat versus 2009.
Performance Materials
Includes Packaging & Industrial Polymers and Performance Polymers businesses
Fourth quarter 2010 sales of $1.6 billion were up 11%, with 9% higher volume and a 5% increase in selling prices, partly offset by a 3% portfolio change. The higher volume reflects double-digit growth in Asia Pacific and North America. PTOI was $206 million, an improvement of $32 million, resulting from a $31 million combined benefit from an acquisition and an early termination of a supply agreement. The impact of higher volume was offset by a weaker overall sales mix and increased raw material costs.
Safety & Protection
Includes Building Innovations, Protection Technologies and Sustainable Solutions businesses
Fourth quarter 2010 sales of $0.9 billion were up 13% from higher volume. Growth reflects increased demand for aramid and nonwoven products due to the continued recovery in industrial markets and strong demand across all regions. PTOI was $92 million versus $135 million in 2009. The year-over-year reduction was due to higher raw material costs, higher spending for aramids growth initiatives and a net $11 million charge related to an asset impairment and a separate gain on an asset sale.