DuPont Posts Net Profit Fall Despite Sales Increase in Q2FY2012
CHEMMONITOR.COM – E. I. du Pont de Nemours and Company (hereinafter DuPont) reported its financial results for the 2nd quarter of 2012. Company’s net sales for the period amounted to USD 11,006 million; it’s a 7.2% year on year (yoy) increase which was possible due to higher local prices and positive portfolio changes that was partially offset by lower volumes and negative currency impact.
Regarding to the regional sales structure, North America represents 45.5% of DuPont’s sales, followed by Europe, Middle East and Africa (EMEA) which collectively holds 22.7% and Asia Pacific with 21.8% share. Latin America accounts for 10% of company’s sales but it’s worth noticing that this emerging market showed remarkable 14% growth in comparison to the same quarter last year; North America and Asia Pacific expanded by 12% and 5% respectively while EMEA demonstrated 2% yoy decrease.
Agriculture is still the company’s largest segment with sales of USD 3,400 million in Q2FY2012, up by 13% compared to Q2FY211. These total 13% were obtained thanks to a 6% increase in volume and 7% increase in prices.
Performance Materials is the DuPont’s second largest segment with USD 2,000 million sales. It stated 1% decrease against the same period last year because of lower sales volume which was not fully offset by higher prices.
Acquisitions of Danisco’s enzyme and specialty food ingredients businesses made it possible for DuPont’s Industrial Biosciences and Nutrition & Health segments to generate sales of USD 300 million (up by 144% yoy) and USD 885 million (up by 82% yoy) respectively.
Net income of the company dropped by 3.2% yoy to USD 1,179 million largely because of higher income taxes. Higher tax rate related to earnings mix is also one of the main reasons the company expects its full-year earnings per share to be closer to the lower boundary of the existing range of USD 4.20-4.40.
Based in Wilmington, Delaware, E. I. du Pont de Nemours and Company is one of the world largest chemical companies that employs more than 70,000 people worldwide. It operates 8 segments: Agriculture, Electronics & Communications, Industrial Biosciences, Nutrition & Health, Performance Chemicals, Performance Coatings, Performance Materials, Safety & Protection.
E. I. du Pont de Nemours and Company is traded on the New York Stock Exchange under the ticker symbol “DD”.