Business News
DuPont: Senior Leaders Detail Plans for Accelerated Growth
Monday 17. March 2008 - At a meeting with investors in New York City Friday, DuPont senior leaders detailed how the company will build on its core competitive advantage of market-driven science to execute the next phase of its accelerated growth plan. The plan is designed to nearly double DuPonts earnings growth rate and increase shareholder value over the next three years.
Collectively, the actions DuPont is taking are expected to increase the companys revenue growth rate from 5 percent to about 7-9 percent per year, including 1-2 percent from bolt-on acquisitions. DuPont also expects to generate USD 1.7 billion in productivity gains over the next three years by extending efforts already under way to streamline and simplify its supply chains and business support operations.
Based on current plans, DuPont projects it can achieve earnings per share growth of 10 percent or more, on average, between 2008 and 2010, despite anticipated declines in pharmaceutical royalties after patents expire in 2010. The company said its goal is to achieve 2010 earnings per share within a range of USD 4.05 to USD 4.30. In 2007, the company earned USD 3.28 per share, excluding net significant item charges of USD .06 per share.
“DuPont is a market-driven science company. The very core of our capability and competitive advantage is scientific discovery and new product innovation,” said DuPont Chairman and CEO Chad Holliday. “Our strengthened science capability has been the driving force behind the transformation of DuPont and has reshaped our businesses to be capable of delivering a step-change in profitable revenue growth.”
DuPont leaders said the initial phase of the accelerated growth plan, which was announced in November 2005 and completed last year, nearly doubled the companys rate of profitability and return on capital from 2003 levels. The company said it has realized over USD 1 billion in productivity gains over that same period.
At the investor meeting, DuPont leaders described actions the company will take to drive higher profitable growth in agriculture, safety & protection, emerging markets and productivity.
Presentations are available in the Investor Center at dupont.com. Upcoming issues of Network News will provide more details on information shared at the investor meeting.