DuPont Delivers Record Full-Year Earnings With 20% Growth in 2011;

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Overig advies 24/01/2012 13:45
Full Year:
 2011 earnings, before significant items, were up 20 percent to a record $3.93 per share versus $3.28 per share in 2010. Reported earnings per share were $3.68 versus $3.28 in 2010.
 Sales of $38.0 billion were up 20 percent, with a 27 percent increase in developing markets.
 Excluding significant items and Pharmaceuticals, segment pre-tax operating income increased 31 percent with leading contributions from Performance Chemicals and Agriculture.
 The company generated $3.3 billion free cash flow in 2011 versus $3.1 billion in 2010, driven by increased segment operating income and productivity initiatives.
 Fixed cost productivity of $400 million and working capital productivity of $500 million significantly exceeded the $300 million targets set for each.
 For 2012, DuPont reaffirmed its earnings outlook range of $4.20 to $4.40 per share, which represents 7 to 12 percent growth versus 2011, excluding significant items.
Fourth Quarter:
 Fourth quarter 2011 earnings were $.35 per share, excluding significant items, reflecting a $.23 per share year-over-year headwind from a higher tax rate. Prior year earnings were $.50 per share, excluding significant items. Reported fourth quarter 2011 earnings were $.40 per share, unchanged from the prior year.
 Sales grew 14 percent to $8.4 billion, principally from 14 percent higher local prices. A 10 percent net increase from portfolio changes was offset by a 10 percent volume decline.
 Agriculture delivered an 8 percent sales gain in the fourth quarter and 23 percent sales growth for the second half. This reflects strong performance during the Latin American selling season.
 Excluding significant items and Pharmaceuticals, segment pre-tax operating income increased over $100 million, or 18 percent versus the prior year, principally due to Performance Chemicals and acquisitions in Industrial Biosciences and Nutrition & Health.
“We delivered exceptional full-year results in 2011 despite significant market headwinds late in the year,” said DuPont Chair and CEO Ellen Kullman. “Our market-driven science continues to meet customer needs in food, energy and protection. Acquisitions in Nutrition & Health and Industrial Biosciences, coupled with robust and disciplined productivity efforts across our businesses, contributed to our successful performance. We remain well-positioned to serve customers and innovate as key markets rebound and global population growth drives new opportunities.”

Global Consolidated Sales and Net Income
Fourth quarter 2011 consolidated net sales of $8.4 billion were 14 percent higher than theprior year. Volume declines in all regions were driven by destocking in photovoltaics, polymer andindustrial supply chains, as well as weaker demand for products supplying consumer electronics andconstruction. Agriculture volume increased and primarily reflects growth and penetration in the LatinAmerican summer season. The table below shows regional sales and variances versus the fourth quarter2010.

The following is a summary of business results for each of the company’s reportable segments, comparing fourth quarter 2011 with fourth quarter 2010, for sales and PTOI (loss) excluding significant items.
References to selling price are on a U.S. dollar basis, including the impact of currency.
Agriculture - Sales of $1.3 billion were up 8 percent, with 5 percent higher selling prices and 3 percent higher volume. PTOI seasonal loss of $(116) million improved $19 million due to higher sales.

Full-year sales of $9.2 billion grew 17 percent with 10 percent volume gains, 6 percent higher prices and 1 percent impact from portfolio changes. Full-year PTOI grew 30 percent with 19 percent PTOI margins. In seeds, sales reflected success in each region with volume and price gains. In crop protection, sales growth was delivered in each product line and region.

Electronics & Communications - Sales of $630 million were down 18 percent reflecting 33 percent lower volume partially offset by 15 percent higher selling prices related to pass-through of metal prices. Lower volume reflects destocking in photovoltaics and softness in consumer electronics. PTOI of $42 million decreased on lower volume, partially offset by OLED technology licensing income of $20 million.

Industrial Biosciences - Sales of $289 million and PTOI of $34 million reflect the acquisition of Danisco's enzyme business. PTOI includes $6 million of amortization expense associated with the fair value step-up of acquired intangible assets.

Nutrition & Health - Sales of $806 million were up $468 million from the acquisition of Danisco's specialty food ingredients business. PTOI of $52 million reflects the acquisition and favorable product mix in Solae.
PTOI includes $20 million of amortization expense associated with the fair value step-up of acquired intangible assets.

Performance Chemicals - Sales of $1.9 billion were up 12 percent, with 29 percent higher selling prices and 17 percent lower volume. Higher selling prices reflect pricing actions to offset higher raw material costs. Lower volume was attributable to a pause in demand for titanium dioxide, particularly in Asia Pacific.
PTOI of $433 million increased $118 million on higher selling prices.

Performance Coatings - Sales of $1.1 billion were up 8 percent, with 10 percent higher selling prices and 2 percent lower volume. Higher selling prices reflect pricing actions across all market segments to offset higher raw material costs. Lower volume resulted from destocking and flat/lower builds in all regions except North America. Demand continued to be strong in the North American OEM motor vehicle and heavy duty truck markets. PTOI of $58 million decreased on weaker mix and a $7 million settlement.

Performance Materials - Sales of $1.6 billion were up 1 percent, with 14 percent higher selling prices and 13 percent lower volume. Higher selling prices offset higher raw material costs. Lower volume reflects broad-based channel destocking along with softening in consumer and industrial markets. PTOI of $151 million decreased due to lower volume and the absence of a prior year $31 million combined benefit from an acquisition and an early termination of a supply agreement.

Safety & Protection - Sales of $943 million were up 10 percent, with a 7 percent increase from the MECS acquisition and 5 percent higher selling prices, partially offset by 2 percent lower volume. Higher selling prices more than offset raw material cost increases. Volume was lower on destocking in the industrial markets. PTOI of $94 million was essentially flat. Prior year included a net $11 million charge related to an asset impairment and a separate gain on an asset sale.
Additional information is available on the DuPont Investor Center website at www.dupont.com



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