DuPont Reports Strong Rise in Q3 Earnings
Sales in Nutrition & Health of $844 million were up $540 million, principally due to the acquisition of Danisco's specialty food ingredients business.
Oct 27 2011 --- DuPont has delivered strong EPS growth on 32% higher sales for the third quarter 2011. Sales increased 32 percent to $9.2 billion with 15 percent higher local prices, 4 percent currency benefit, 1 percent higher volume, and a 12 percent net increase from portfolio changes. Sales in developing markets grew 38 percent. Growth in demand for the company’s agricultural products and further expansion into food ingredient and enzyme markets offset destocking in photovoltaics and specialty polymers.
Segment pre-tax operating income excluding significant items increased 50 percent to $1.1 billion, largely driven by improvements in the Performance Chemicals and Agriculture segments and the acquisition of Danisco. DuPont is on track to meet its full-year 2011 productivity targets for fixed costs and working capital. Year-to-date fixed cost productivity totals more than $250 million.
Given the strong performance in the third quarter, the company has raised its expectations for full-year 2011 earnings to a range of $3.97 to $4.05 per share excluding significant items. This moves the range to the upper half of the company’s previous guidance of $3.90 to $4.05 per share.
“The resilience and diversity of DuPont’s business portfolio was evident in our strong third quarter results. Despite turbulent global economic and market conditions, we delivered solid growth through innovative products and process technologies, disciplined execution and continued productivity gains,” said DuPont Chair and CEO Ellen Kullman. “Our portfolio is further strengthened by the rapid integration of Danisco, continued capacity expansions and selective growth investments across many of our businesses."
Sales in Nutrition & Health of $844 million were up $540 million, principally due to the acquisition of Danisco's specialty food ingredients business. PTOI of $55 million increased $45 million (reflecting the acquisition) and includes $22 million of amortization expense associated with the fair value step-up of the acquired intangible assets.
