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DuPont quarterly sales drop, income rises

By: RUBBER & PLASTICS NEWS

July 23, 2014

DuPont Co.’s sales and net income experienced slight changes for the second quarter 2014, as operating earnings dropped to $1.17 per share in the second quarter, down from $1.28 per share in 2013.

The firm’s net income increased slightly to about $1.07 billion, up $40 million from 2013. However for the half year, net income is down to about $2.52 billion compared to $4.39 billion in 2013.

DuPont’s sales decreased by 1 percent to about $9.71 billion in the second quarter compared to $9.84 billion in 2013. Sales also declined for the six-month period, down to about $19.8 billion compared to $20.3 billion in 2013.

The company’s Performance Chemicals segment was its second-largest performer sales wise for the three-month period, reporting sales of about $1.7 billion. That, however, was down 8 percent compared to 2013. Operating earnings were down $17 million, or 6 percent, to $251 million.

Chair and CEO Ellen Kullman said DuPont will move ahead with its planned separation of its Performance Chemicals segment, which is still on track for mid-2015. She said DuPont has launched the initial stage of a broad initiative to reset the firm’s operating model.

“This work is already gaining traction and will continue to expand, positioning DuPont to drive greater growth and value with a simplified, streamlined support structure and a smaller cost base—consistent with the purpose, strategy and needs of the DuPont company, post separation,” she said.

DuPont’s Performance Materials business was its third best performer among its seven primary business segments, recording sales of about $1.58 billion, which was down 2 percent compared to 2013. Operating earnings decreased $29 million, or 9 percent, to $303 million.

The firm’s largest segment was Agriculture, recording sales of about $3.62 billion, which DuPont said was no change from 2013. However, the firm reported an 11 percent decrease in earnings to $836 million.

“While lower agriculture earnings impacted our results this quarter, we continue to see strong science driven growth in this segment over the long term,” Kullman said. “We are steadily advancing DuPont’s strategy to build and strengthen world-leading positions in agriculture and nutrition, bio-based industrials and advanced materials.”

Regionally, the U.S. and Canada accounted for about $4.6 billion of its total second quarter sales, which dropped 3 percent compared to 2013. Its sales in the Europe, Middle East and Africa region increased 2 percent to about $2.12 billion, while sales in the Asia Pacific held at about $2.09 billion. Sales in Latin America dropped 4 percent to $895 million.