What was DuPont's overall financial performance in 2006?

DuPont experienced a strong year in 2006, with net sales increasing by 3% to $27.4 billion and diluted earnings per share (EPS) rising significantly by 63% to $3.38. This growth was attributed to higher selling prices, increased volumes in strategic regions, and effective cost management, which helped offset significant increases in raw material costs.

How did the company manage increased raw material and energy costs?

DuPont faced over $800 million in increased costs for raw materials, primarily due to higher oil, natural gas, and hydrocarbon feedstock prices. The company managed these cost pressures through a combination of increased pricing across its product lines and ongoing productivity improvement initiatives.

What is the company's outlook for 2007?

DuPont anticipates a less favorable economic environment in 2007 compared to 2006, with a projected slowdown in global GDP growth. However, the company expects continued sales volume growth across its key platforms and projects its EPS to be around $3.15, with net sales reaching approximately $29 billion. Raw material costs are expected to remain relatively consistent with 2006 levels.

Were there any significant one-time charges or benefits impacting the 2006 results?

Yes, DuPont recorded net charges of $326 million related to restructuring plans in the Agriculture & Nutrition and Coatings & Color Technologies segments. The company also recorded $76 million in insurance recoveries related to Hurricane Katrina damages and asbestos litigation. Additionally, significant tax benefits from settlements and valuation allowance reversals positively impacted net income.

CTA-PB/CTA-PA 10-K FY2006 Annual Report — Revenue, Net Income, EPS

Summary

E.I. du Pont de Nemours and Company (DuPont) reported strong financial performance for the fiscal year ending December 30, 2006. The company's growth strategies focusing on science, integrated operations, and emerging markets yielded positive results, with sales increasing by 3% to $27.4 billion and diluted earnings per share (EPS) growing by an impressive 63% to $3.38. This growth was driven by higher selling prices, increased volumes in key regions like Asia Pacific and Latin America, and successful cost management efforts, including exceeding fixed cost reduction targets. The company also saw a significant improvement in its Return on Invested Capital (ROIC), increasing by 7 percentage points. DuPont demonstrated resilience by overcoming record-high energy and raw material costs, which exceeded $800 million. The company managed these pressures through pricing adjustments and productivity improvements. Notably, the company recovered from the hurricane disruptions of 2005, with its DeLisle, Mississippi titanium dioxide plant resuming normal operations by the second quarter of 2006. The company's diverse segment performance was led by Safety & Protection with strong earnings, while Agriculture & Nutrition experienced a PTOI decline due to restructuring charges. Looking ahead, DuPont anticipates a global economic slowdown in 2007 but projects continued sales volume growth across its platforms, with modest EPS growth expected.

Key Highlights

1Net sales increased by 3% year-over-year to $27.4 billion in 2006.

2Diluted earnings per share (EPS) surged by 63% to $3.38 in 2006.

3Return on Invested Capital (ROIC) improved by 7 percentage points.

4The company exceeded its goal for fixed cost savings, reducing them by approximately $170 million as a percentage of sales.

5Sales outside of North America, the UK, Germany, France, Italy, and Japan increased to 36% of total sales, up from 33% in 2004, indicating successful international expansion.

6The DeLisle, Mississippi titanium dioxide plant fully recovered operations following Hurricane Katrina disruptions in 2005.

7Restructuring charges of $326 million were recorded in 2006 primarily within the Agriculture & Nutrition and Coatings & Color Technologies segments to streamline operations.

EIDP, Inc. Annual Report, Year Ended Dec 31, 2006

Summary

Key Highlights

Frequently Asked Questions