Performance Chemicals spinoff 'best option,' says DuPont CEO

By Frank Esposito
Senior Staff Reporter

Published: November 1, 2013 2:01 pm ET
Updated: November 1, 2013 5:22 pm ET

Image By: DuPont Co. DuPont CEO Ellen Kullman

Related to this story

Topics Materials, Mergers & Acquisitions, Materials Suppliers
Companies & Associations DuPont Co.

DuPont Co. plans to spin off its Performance Chemicals unit — including Teflon-brand fluoropolymer and Ti-Pure brand titanium dioxide — into a separate public company that will be owned by DuPont shareholders.

The Oct. 24 announcement comes three months after Wilmington, Del.-based DuPont said it was seeking a buyer for the unit, which generated sales of about $7 billion in 2012. Spinning off the unit "is clearly the best option," Chairman and CEO Ellen Kullman said in a news release. "This separation will result in two strong, highly competitive companies."

The separation is expected to be completed in about 18 months, officials said, which would put the date around mid-2015.

The Performance Chemicals unit has struggled in 2013, in spite of being the second-largest DuPont business, based on sales. Its third-quarter operating earnings total of $254 million was almost 40 percent less than it was in the same quarter in 2012. In the first nine months of 2013, the unit's sales fell almost 9 percent vs. the year-ago period to $5.1 billion, as operating earnings tumbled 51 percent to $769 million.

Teflon is a well-known industry name used in non-stick coatings and high-end industrial applications. TiO2 is a common whitener used in plastics and many other products.

TiO2 generated 46 percent of the unit's sales in 2012, with fluoropolymers chipping in another 17 percent. Based on those percentages and 2012 sales, DuPont's TiO2 business would have annual sales of about $3.3 billion, while fluropolymers would generate about $1.2 billion in annual sales.

DuPont also is a major producer of nylon and other specialty plastic resins, as well as specialty plastic films. Those businesses are included in the firm's Performance Materials unit, which is separate from Performance Chemicals.

On Wall Street, DuPont's per-share stock price has fared well so far in 2013. It began the year around $45 but was near $61.40 in early trading Nov. 1 for a gain of almost 40 percent.


Comments

Performance Chemicals spinoff 'best option,' says DuPont CEO

By Frank Esposito
Senior Staff Reporter

Published: November 1, 2013 2:01 pm ET
Updated: November 1, 2013 5:22 pm ET

Post Your Comments


Back to story


More stories

Image

Indian auto parts maker set to buy assets in Germany, Mexico

December 18, 2014 10:35 am ET

Indian auto parts maker Samvardhana Motherson Gropup is buying the assets of insolvent German plastics car parts producer Scherer & Trier (S&T).    More

Image

Sweden's Indutrade buys Belgian packaging firm Verbeek

December 18, 2014 9:42 am ET

Sweden's Indutrade AB has purchased all the shares in Belgium's Verbeeck Packaging Group.    More

Image

Röchling buys two UK firms

December 18, 2014 9:24 am ET

Germany's Röchling Engineering Plastics SE & Co. KG has expanded its presence in the high-performance plastics market by acquiring two British firms...    More

McCann expanding in Ohio

December 17, 2014 11:59 am ET

Compounding firm McCann Plastics will spend $1.2 million on an expansion project that will create 15 new jobs at its plant in Green, Ohio.    More

French firm acquires Zimmer-brand polymer technology

December 15, 2014 4:18 pm ET

The deal includes technologies for the processing of polyesters and nylons, and approximately 40 researchers and engineers.    More

Market Reports

Flexible Packaging Trends in North America

Our latest RESEARCH report examines trends in FLEXIBLE PACKAGING impacting the North American market including a review of economic conditions, key drivers of growth, materials pricing, M&A activity, sustainability challenges and the outlook for 2015.

Learn more

Plastics Recycling Trends in North America

This report is a review and analysis of the North American Plastics Recycling Industry, including key trends and statistics based on 2013 performance. We examine market environment factors, regulatory issues, industry challenges, key drivers and emerging trends in post-consumer and post-industrial recycling.

Learn more

Plastics in Mexico - State of the Industry Report

This report analyzes the $20 billion plastics industry in Mexico including sales of machinery & equipment, resins and finished products.

Our analysts provide insight on business trends, foreign investment, top end markets and plastics processing activity. The report also provides important data on exports, production, employment and value of plastics products manufactured.

Learn more

Upcoming Plastics News Events

January 14, 2015 - January 14, 2015Plastics in Automotive

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 16, 2015 - September 18, 2015Plastics Caps & Closures - September 2015

October 27, 2015 - October 29, 2015Plastics Financial Summit - New York - 2015

More Events