Second quarter 2008 earnings per share grew 13 percent to USD 1.18, up from USD 1.04 in the second quarter of 2007. Earnings benefited USD .07 per share from a litigation settlement and a lower base tax rate.
"DuPont captured strong growth in agriculture and emerging markets and grew earnings despite accelerating raw material and energy costs in the second quarter. We are executing well in a challenging environment," said DuPont Chairman and CEO Chad Holliday. "DuPont's strategic transformation in recent years is enabling us to successfully adapt to the new reality of significantly higher commodity costs and we remain focused on achieving our 2010 accelerated growth plan."
Second Quarter Highlights, Net Income and Sales
Second quarter 2008 earnings per share grew 13 percent to USD 1.18, up from USD 1.04 in the second quarter of 2007. Earnings benefited USD .07 per share from a litigation
settlement and a lower base tax rate.
Sales increased 12 percent to USD 8.8 billion, reflecting 7 percent higher local selling prices, 5 percent currency benefit, 1 percent higher volumes and a 1 percent reduction from portfolio changes. Sales outside the United States grew 18 percent, while sales in the United States grew 5 percent despite weakness in housing and automotive markets.
Local selling prices increased 7 percent, partially offsetting a 15 percent increase in energy, raw materials and freight costs in the second quarter.
Agriculture & Nutrition sales grew 23 percent, reflecting strong global demand for the company's corn, soybean and crop protection products.
Fixed costs as a percentage of sales improved 200 basis points from the prior-year quarter, reflecting the company's continued cost productivity improvement programs.DuPont increased the lower end of its full year 2008 earnings outlook, narrowing the range to USD 3.45 to USD 3.55 per share.
Global Consolidated Net Income and Sales
Consolidated net sales grew 12 percent to USD 8.8 billion. Sales outside the United States grew 18 percent and accounted for 60 percent of worldwide sales. Sales in emerging markets grew 23 percent.
Net income for the second quarter of 2008 was USD 1,078 million, or USD 1.18 per share. Second quarter 2007 net income was USD 972 million, or USD 1.04 per share.
Second Half, Full Year 2008 Outlook
The company increased the lower end of its full year 2008 earnings outlook, narrowing the range to USD 3.45 to USD 3.55 per share. The previous earnings outlook was a range of USD 3.40 to USD 3.55. First half 2008 earnings per share increased significantly versus prior year, principally reflecting strong growth in agriculture earnings, which are concentrated in the first half of the year. The company expects second half 2008 earnings per share to be modestly lower than last year due to the impact of higher energy and ingredient costs, lower demand in certain developed markets, lower income from asset sales, and a higher base tax rate. The company expects second half 2008 earnings per share to be about equally split between the third and fourth quarters.
"DuPont is executing extremely well in a tougher environment," Chad said. "We remain focused on achieving the growth objectives of our 2010 Acceleration Plan."