Business News

Du Pont: Fourth Quarter 2007 Business Segment Performance

Wednesday 23. January 2008 - The following are business segment highlights, excluding significant items, comparing fourth quarter 2007 results to fourth quarter 2006.

Agriculture & Nutrition
Fourth quarter sales increased USD 237 million to USD 1.3 billion with strong sales growth in all regions. Brazil delivered record revenue and earnings growth this selling season, which was driven by robust demand for Pioneer brand seed with superior yield, advantaged market channel capabilities and market share gains.
A seasonal PTOI loss of USD 89 million reflected an improvement of USD 59 million versus the prior-year quarter. Earnings gains were driven by strong sales, improved margins, and cost productivity improvements, moderated by planned growth investments. 2007 PTOI includes a gain of USD 15 million relating to the divestiture of certain crop chemical assets.
Coatings & Color Technologies
Sales increased to USD 1.7 billion. Broad-based sales increases outside the United States, which were driven primarily by higher USD selling prices, offset continued weakness in North American auto and housing markets.
PTOI increased 5 percent to USD 216 million, compared to USD 205 million in the prior-year quarter. Earnings grew substantially in coatings which reflected fixed cost reductions and higher sales. This increase was partially offset by the absence of a gain on the sale of assets in the prior year and modest earnings declines in titanium dioxide.
Electronic & Communication Technologies
Sales grew to USD 1.0 billion, reflecting higher volumes, particularly in Latin America and Asia, and higher USD selling prices. Price improvements in North America increased revenue in the region compared to the prior-year quarter.
PTOI increased to USD 156 million, including a USD 28 million gain from an asset sale. Excluding the gain, PTOI increased 14 percent, reflecting higher volumes in imaging and fluoroproducts and fixed cost productivity
Performance Materials
Sales grew to USD 1.7 billion primarily due to higher USD selling prices. Volume growth in Latin America, Asia and Europe was more than offset by lower demand in North America.
PTOI grew to USD 186 million, reflecting strong sales across all product lines, currency benefits and fixed cost productivity. 2007 PTOI includes a USD 16 million charge for a manufacturing asset write-down.
Safety & Protection
Sales grew to USD 1.4 billion, reflecting higher USD selling prices and volume growth in the surfaces, Kevlar and Nomex product lines.
PTOI grew to USD 277 million, reflecting the segment’s diverse products and markets, which offset weakness in the U.S. housing market.