DuPont Second Quarter 2007 Earnings Supplemental Information

Transcription

1 July 24, 2007 DuPont Second Quarter 2007 Earnings Supplemental Information Contents: Segment Details Commentary on business results in the quarter DuPont Highlights Summary of news highlights from the quarter 1

2 July 24, 2007 Second Quarter 2007 Segment Details All commentary is based on year-over-year comparisons, unless otherwise noted. All earnings commentary is based on pretax operating income (PTOI) and excludes significant items. DUPONT AGRICULTURE & NUTRITION North America seed corn revenue increased low double digits in the quarter. Soybean seed sales were significantly lower. Strong international momentum continued. Earnings were essentially equal to last year. Higher earnings on US seed corn were offset by lower soybean sales and $33 million cost investment in additional crop genetics R&D and sales and marketing. Crop protection sales and earnings were up significantly on broad based sales gains. Nutrition and health sales increased modestly on volume gains. Earnings were down reflecting higher input costs. DUPONT COATINGS & COLOR TECHNOLOGIES Ti02 sales grew modestly on aggressive international growth, partially offset by weakness in U.S. architectural paint / U.S. housing. Earnings decreased significantly on the weakness in the domestic markets and higher ingredient costs. Refinish paint sales increased moderately on higher volume, particularly in Europe. Earnings increased moderately based primarily on higher volumes. Industrial paint earnings were substantially down on higher costs and lower sales. OEM paint sales were flat as favorable currency was offset by the weak domestic market. Earnings increased reflecting lower fixed costs. DUPONT ELECTRONIC & COMMUNICATION TECHNOLOGIES Sales for electronic material products grew modestly. The impact of higher metals pricing and gains in microcircuit materials were largely offset by lower demand in high performance materials. Strong sales growth in Europe was offset by weakness in Asia and North America. Earnings reflected softness in certain cell phone and semiconductor supply chains. Sales for fluoroproducts rose modestly. Volume gains and favorable currency were largely offset by lower local refrigerant prices. Earnings declined moderately due to lower refrigerant pricing and growth investments. Sales for imaging products increased slightly from the prior year due to volume gains for packaging graphics that were offset by lower inkjet sales. Earnings increased due to fixed cost management and higher sales. 2

3 DUPONT PERFORMANCE MATERIALS Sales in engineering polymer product lines grew modestly on price gains and favorable currency, partially offset by lower volume. Revenues were strong in Europe, higher in Asia and lower in North America. Earnings were essentially equal to the prior year as revenue gains were mostly offset by higher raw material costs. Sales of packaging and industrial polymer products grew significantly due to price and currency gains. Sales were strong in most regions. Earnings grew substantially due to sales gains, partially offset by higher raw material costs. Sales for elastomer product lines rose on volume, price and currency gains. Earnings grew substantially reflecting sales gains and disciplined fixed cost management, partially offset by higher ingredient costs. DUPONT SAFETY & PROTECTION Aramids (Kevlar /Nomex ) sales increased significantly primarily on volume and mix gains. Earnings increased substantially with strength in life protection, emergency response, and electrical segments more than offsetting increased growth investments. Chemicals sales were essentially flat as price increases in specialty chemicals was offset by lower volume partially due to the sale of a chemical business earlier this year. Earnings increased significantly reflecting a mix shift to higher margin products, favorable currency and gain on asset sale. Tyvek product lines revenues grew slightly as price increases offset the decline in demand due to U.S. housing and lower demand in protective apparel roll goods. Earnings declined moderately as a result of lower volumes and higher fixed cost supporting strategic investments. Surfaces product lines were essentially flat as strong demand in Europe was offset by lower demand in the U.S. housing market. Earnings declined substantially primarily reflecting lower sales volume. Safety consulting sales were significantly lower as a result of contract timing. Earnings were substantially down with sales. 3

4 July 24, 2007 Putting Our Science to Work: Second Quarter 2007 Business Highlights Biobutanol Performance Similar to Unleaded Gasoline, According to New Fuel Testing New fuel testing on biobutanol, the advanced biofuel being developed jointly with BP, indicates that biobutanol will perform similarly to unleaded gasoline on key parameters. In addition, biobutanol is demonstrating controlled volatility, sufficient octane, low levels of impurities, no phase separation in the presence of water and no negative impact on elastomer swelling. Herculex RW Advances Toward EU Approval With Positive Scientific Safety Opinion -- The Herculex RW Rootworm corn trait was given a positive safety opinion by the European Food Safety Authority (EFSA), moving the trait another step closer to approval for food, feed and import into the European Union (EU). The safety opinion from EFSA, the EU s independent scientific authority charged by regulators with review of health and safety issues, represents a significant advancement for the rootworm-resistance trait. DuPont Launches Optilon AR Film Coatings for LCD Displays -- DuPont launched a unique line of anti-reflective (AR) film coatings to significantly improve the image contrast and color quality of Liquid Crystal Displays (LCDs). DuPont Optilon AR coating solutions are liquid formulations that enable the manufacture of single-layer, antireflective films for the front of LCD displays that greatly decrease surface reflections. DuPont Introduces Thermal Mass Innovation for Sustainable Construction -- DuPont has introduced DuPont Energain, an innovative concept in thermal mass that provides a long-term sustainable solution to reduce energy consumption and greenhouse gas emissions in public, commercial and residential buildings. DuPont Innovation Builds Flat Panel Displays from the Inside-Out -- Spanning a broad range of technologies and products, DuPont exhibited its latest offerings to the displays industry at the Society for Information Displays conference. DuPont showcased groundbreaking solutions with significantly improved performance and commercially available products for liquid crystal displays (LCDs), organic light emitting diodes (OLEDs), plasma display panels (PDPs) and field emission displays (FEDs). DuPont Receives Experimental Use Permits for New Rynaxypyr Insecticides -- DuPont announced that the U.S. Environmental Protection Agency (EPA) approved experimental use permits (EUP) for both DuPont Altacor and DuPont Coragen insecticides for use on 10 fruit and vegetable crops in 16 states, including California, Florida and Texas. Both products are based on Rynaxypyr, a new crop protection chemistry from DuPont with high efficacy in controlling target pests at low use rates. 4

5 DuPont Continues to Advance Sustainable Packaging -- DuPont Packaging announced expansion of its Biomax Strong family of polymer additives to include an FDA-compliant grade for food contact applications. Biomax Strong additives improve the performance of bio-based polylactic acid (PLA) packaging which is considered a sustainable alternative to petrochemical-derived products. DuPont Cerenol Introduced as Newest Renewably Sourced Polymer Family The company launched its newest polymer family, DuPont Cerenol. A family of polyols, Cerenol contains percent renewable content while providing enhanced performance to a diverse portfolio of end-use products ranging from running shoes and ski boots to cosmetics, automotive components and spandex fiber applications. New DuPont Solution-Based OLED Materials Set Delivers High-Performance at Lower Cost - - DuPont announced the development of a new set of organic light emitting diode (OLED) materials designed for lower cost, solution-based fabrication methods. The new material set, which includes all of the essential materials used in the construction of an OLED display, relies on DuPont HIL (hole injection layer) material and includes DuPont light emitting and charge transport materials. Two of DuPont s Newest Technologies Win Innovation Achievement Awards -- DuPont Hybrid Membrane Technology (HMT) and DuPont Sorona polymer both received prestigious IDEA Achievement Awards, presented at IDEA07, the International Engineered Fabrics Conference and Expo. DuPont Innovations Help Meet New U.S. Flammability Standard DuPont Kevlar is playing a key role in helping mattress manufacturers meet the U.S. Consumer Product Safety Commission s (CPSC) new flammability standard for mattresses. The standard went into effect July 1, helping to create a safer sleep environment for consumers and their families. DuPont SentryGlas Plus Makes Grand Canyon Skywalk Possible -- The Grand Canyon West Skywalk observation platform with all-glass decking has officially opened to the public. Ultra-clear DuPont SentryGlas Plus structural interlayers provide strength and stiffness plus optical clarity that enable visitors to have an unprecedented viewing experience while standing safely on the observation platform in Arizona. Newest DuPont Water-Based Coating Reduces Solvents and Greenhouse Gases -- DuPont Cromax Pro was designed to help collision repair shops meet stricter emissions regulations that take effect in 2009 in California. Similar regulations are expected in Canada. New DuPont Imron ZV HG polyurethane enamel is a water-based version of a coating that became known for its wet look. DuPont JV Solae and Senomyx Partner on Soy Proteins with Enhanced Flavor -- Senomyx, Inc. and The Solae Company announced they have entered into a collaborative agreement for the discovery, development and commercialization of novel flavor ingredients intended to enhance the taste characteristics of soy proteins. DuPont Fire Extinguishants Demonstrates Clean Agent Solutions for Fire Protection -- DuPont Fire Extinguishants exhibited its portfolio of clean agent fire extinguishants at the National Fire Protection Association (NFPA) World Safety Conference & Expo, the premiere event for fire and life safety professionals. 5

6 DuPont Signs Biopesticides Development Agreement -- DuPont and Marrone Organic Innovations, Inc. (MOI) have signed an agreement to provide MOI with exclusive access to natural product discoveries from DuPont for development as biopesticide products. DuPont Semiconductor Fabrication & Packaging Materials Introduces New Products -- DuPont Electronic Technologies introduced a new combination of co-designed products, DuPont WBR2000 microlithographic polymer films and a new DuPont EKC dryfilm remover. The products provide a step change in fine pitch bump formation and clean resist removal to meet the most challenging wafer level and flip chip bumping requirements. Going Where the Growth Is: DuPont Invests $58 Million in Two Biofuels Facilities in the United Kingdom As part of the strategy to continue accelerated development of next-generation biofuels, DuPont announced it will invest $58 million to construct a biobutanol demonstration facility with BP and will partner with BP and British Sugar to construct a 420 million liter ethanol facility. DuPont Breaks Ground for New Titanium Tetrachloride Unit in Tennessee -- Construction has begun on a new 100 million pound per year titanium tetrachloride production facility at the DuPont titanium dioxide plant in New Johnsonville, Tenn. The unit is expected to begin operations in the summer of New Research Center Strengthens DuPont Leadership Position in Brazil -- DuPont has opened its newest seed research center in Brazil. Located in Porto Nacional, the center will help DuPont accelerate global research efforts to bring better genetics and traits to market faster. DuPont business, Pioneer Hi-Bred, has grown its corn seed business in the high-value Brazil market by 20 points in eight years by delivering products that help farmers increase their productivity. First Renewably Sourced Ingredient Now Has a Dozen Applications Demand for renewable ingredients and the outstanding performance properties of Bio-PDO, DuPont s first renewably sourced ingredient, has created demand for expanded uses of Bio-PDO. The product is best known as the key ingredient in DuPont Sorona polymer and is now an ingredient in the DuPont Cerenol polymer. It is available in a dozen product applications as a versatile, biodegradable and high-performance ingredient for cosmetics, liquid detergents and industrial applications such as antifreeze, as well as many other applications that currently use glycols. DuPont and GM Announce New Paint System for Mexican Auto Plant -- General Motors will modify the paint shop at its Toluca, Mexico Assembly Plant later this year with an innovative DuPont technology to reduce the footprint of the process, as well as emissions. The paint shop will go into full production with a three-coat one bake ( 3-Wet ) painting process. This innovative DuPont Automotive OEM Coatings system reduces facility operating costs and provides environmental benefits. 6

7 DuPont and FOSS Announce Joint Agreement to Enhance Ethanol Production --DuPont and FOSS North America announced an agreement that will help farmers and ethanol producers better understand the ethanol yield potential of grain corn being delivered to ethanol plants. Protective Garments Launched in Indonesia -- Thermal protective garments made of DuPont Nomex recently were introduced to customers in Indonesia. The introduction marks the first time DuPont has made its own ready-to-wear garment targeting Indonesia. DuPont Wins Award for Innovation Developed with Volkswagen -- DuPont Automotive Systems won a prestigious Automotive News PACE Award for the development and commercialization of EcoConcept, an OEM painting system that reduces greenhouse gas emissions, saves energy and improves productivity. The system, which eliminates an entire coat in the painting process, is in operation at Volkswagen AG's plant at Puebla, Mexico, and a plant in Spain and is being installed at several other locations. The Power of One DuPont: Environmental Defense and DuPont Launch Comprehensive Nanotechnology Tool DuPont partnered with Environmental Defense, a leading national non-profit organization, to launch a comprehensive framework to assist with the responsible development and use of nanotechnology and to help inform global dialogue on its potential risks. The Nano Risk Framework will be used by DuPont and others to evaluate and address potential environmental, health and safety risks of new nanoscale materials. DuPont ExpressSun Trait Launched in U.S. -- Pioneer Hi-Bred and DuPont Crop Protection introduced a new cost-effective, broad-spectrum weed control option for sunflower growers: Pioneer brand sunflower hybrids with the DuPont ExpressSun trait. This unique sunflower system from DuPont Crop Protection and Pioneer is designed to maximize weed control in sunflower crops, improving ease of production and potential yield. The trait was launched in Europe in Driving Energy Solutions in the Middle East DuPont showcased its latest innovations at the Middle East Oil & Gas Show and Conference in Bahrain. Key offerings included Nomex DuPont Tyvek, StreamMax and other productss that enhance the performance of thermoplastic pipes using Kevlar and Pipelon. Renewably Sourced Materials Portal Launched To help DuPont customers find renewably sourced ingredients and products, a new web portal was launched that hosts information on ten renewably sourced product families for automotive, carpeting, industrial fluids, packaging, personal care and textiles markets. Products that contain at least 20 percent renewably sourced ingredients by weight and meet or exceed similar petroleum-derived products in critical performance dimensions qualify to be marketed on the web site: 7