DuPont Reports Improved Q2, Nutrition & Health Boosted by Danisco

29 Jul 2011

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Within Nutrition & Health, sales of $486 million were up $189 million, or 64%, with a 58% increase from the acquisition of Danisco’s food ingredients business, 4% higher selling prices and 2% volume growth.

Jul 29 2011 --- DuPont has reported that second-quarter 2011 earnings were $1.37 per share, up 17 percent versus $1.17 per share in the prior year, excluding significant items from both periods. Reported second-quarter 2011 earnings were $1.29 per share, including significant item charges of $.08 per share related to the acquisition. Reported second-quarter 2010 earnings were $1.26 per share.

Sales increased 19 percent to $10.3 billion with 11 percent higher local prices, 2 percent higher sales volume, 3 percent currency benefit and a 3 percent net increase from portfolio changes. Sales in developing markets grew 29 percent and represent 30 percent of total sales.

Strong performances in Agriculture, Performance Chemicals and Safety & Protection, and the acquisition of Danisco contributed to a 20 percent increase in segment pre-tax operating income, excluding significant items.

Within Nutrition & Health, sales of $486 million were up $189 million, or 64%, with a 58% increase from the acquisition of Danisco’s food ingredients business, 4% higher selling prices and 2% volume growth. PTOI of $38 million increased $22 million, primarily due to the acquisition. PTOI included approximately $7 million of amortization expense associated with the fair value step-up of intangible assets acquired as part of the acquisition.

The company is on track versus its full-year 2011 productivity targets for fixed costs and working capital. Year-to-date fixed cost productivity totals more than $180 million.

The company increased its full-year 2011 earnings outlook, excluding significant items, to a range of $3.90 to $4.05 per share. The increase reflects strong second-quarter results, the expectation for continued global economic growth and about $.05 per share full-year impact from Danisco on an underlying basis. Prior guidance was a range of $3.65 to $3.85 per share, excluding the impact of Danisco.

"Our strong second-quarter sales growth across all segments and regions resulted from consistent global execution and customer-focused innovation," said DuPont (NYSE: DD) Chair and CEO Ellen Kullman. "We are increasing our earnings outlook for 2011 based on strong performance year-to-date and confidence in our business plans for the second half of the year. Longer term, we expect additional compelling growth opportunities across our businesses stemming from science-powered innovations and collaboration, including the integration of Danisco's world-class enzymes, fermentation and specialty food ingredients capabilities with DuPont's strong industrial biosciences and nutrition & health offerings."