- First quarter 2012 earnings, before significant items, were $1.61 per share versus $1.52 per share in 2011. Reported earnings per share were $1.57 versus $1.52 in 2011.
- Sales of $11.2 billion were up 12 percent versus the prior year. This reflects 8 percent higher local prices, 1 percent currency headwind, 2 percent lower volume and 7 percent net benefit from portfolio changes. Sales in developing markets grew 15 percent.
- Segment pre-tax operating income, excluding significant items, increased $252 million, or 12 percent versus the prior year, principally due to Agriculture, Performance Chemicals and the benefit of prior-year acquisitions in Nutrition & Health and Industrial Biosciences.
- Agriculture delivered 16 percent higher sales and an 18 percent increase in pre-tax operating income, excluding significant items, versus last year's first quarter. This reflects strong global business performance and an early start to the North American and European selling seasons.
- The company's productivity initiatives continued on track with improvements of approximately $100 million each for fixed costs and working capital.
- DuPont reaffirmed its full-year earnings outlook range of $4.20 to $4.40 per share, which represents 7 to 12 percent growth versus 2011, excluding significant items.
"DuPont's market-driven science and commitment to innovation and productivity are winning in key markets, despite economic headwinds early in the first quarter," said DuPont Chair and CEO Ellen Kullman. "Around the world, we are bringing our science closer to local markets by collaborating with customers and partners in our new DuPont Innovation Centers. We are prioritizing our R&D portfolio to deliver food, energy and protection solutions for the world's growing population."
Global Consolidated Sales and Net Income
First quarter 2012 consolidated net sales of $11.2 billion were 12 percent higher than the prior year, including 7 percent attributable to portfolio changes. Local prices were 8 percent higher with increases in all regions. The 2 percent decline in total company volume principally reflects strong Agriculture segment volume gains in all regions offset by lower volume for most segments in Asia. The table below shows regional sales and variances versus the first quarter 2011.
The following is a summary of business results for each of the company's reportable segments, comparing first quarter 2012 with first quarter 2011, for sales and PTOI, excluding significant items. References to selling price are on a U.S. dollar basis, including the impact of currency.
Sales of $4.1 billion were up $576 million, or 16 percent, with 8 percent price and 8 percent volume gains. Seed sales growth reflects strong global performance with robust North American corn sales, a strong, early start to the European season and commercial success in Brazil's Safrinha season. Crop Protection product sales growth was underpinned by particular strength in insect control product volumes and price gains across the portfolio. PTOI of $1.3 billion improved 18 percent on higher volume and price, offset in part by input cost increases and unfavorable currency impact.
Electronics & Communications
Sales of $677 million were down 17 percent on 18 percent lower volume. Sales reflect continued soft demand in photovoltaics, partially offset by increased demand for smart phones and tablets. PTOI of $33 million declined from lower volume and plant utilization.
Sales of $288 million and PTOI of $41 million reflect the acquisition of Danisco's enzyme business. PTOI includes $5 million of amortization expense associated with the fair value step-up of acquired intangible assets.
Nutrition & Health
Sales of $808 million and PTOI of $83 million reflect the acquisition of Danisco's specialty food ingredients business. PTOI includes $21 million of amortization expense associated with the fair value step-up of acquired intangible assets.
Sales of $1.9 billion were up 6 percent, with 16 percent higher selling prices and 10 percent lower volume. Higher selling prices more than offset higher raw material costs. Lower volume reflects continued softness in titanium dioxide, particularly in Asia Pacific. Global demand for titanium dioxide increased sequentially. PTOI of $512 million increased $118 million on higher selling prices.
Sales of $1.1 billion were up 6 percent on higher selling prices. Higher selling prices across all regions and market segments offset higher raw material costs. Continued strong demand in OEM motor vehicle and industrial coatings, particularly in the North American heavy duty truck market, was offset by softening in refinish primarily in southern Europe. PTOI of $87 million increased on higher selling prices, mix enrichment and continued productivity actions.
Sales of $1.6 billion were down 6 percent, with 10 percent lower volume and a 2 percent reduction from a portfolio change partially offset by 6 percent higher selling prices. Demand improved in the automotive market, particularly in North America, but was more than offset by continued softness in industrial and electronics markets. Higher selling prices offset higher raw material costs. PTOI of $240 million decreased due to lower volume.
Safety & Protection
Sales of $941 million were down 2 percent, with 5 percent lower volume, partially offset by 3 percent higher selling prices. Volume was lower on continued softness in industrial markets. Higher selling prices reflect value-based pricing. PTOI of $100 million decreased on lower volume and higher spending for growth initiatives.
DuPont reaffirms its full-year 2012 earnings outlook of $4.20 to $4.40 per share, an increase of 7 to 12 percent versus 2011, excluding significant items.