Summary
E. I. du Pont de Nemours and Company (DuPont) reported a strong financial performance for the quarter and six months ended June 30, 2010, showing significant year-over-year improvements. Net sales increased by 26% for the quarter and 25% year-to-date, driven by volume growth across all segments, particularly in emerging markets, and supported by a 5% and 4% increase in local selling prices respectively. Net income attributable to DuPont surged to $1.16 billion for the quarter ($0.42 billion in Q2 2009) and $2.29 billion year-to-date ($0.91 billion in H1 2009), reflecting robust operational execution and the absence of significant prior-year restructuring charges. The company has raised its full-year 2010 earnings outlook to $3.00-$3.15 per share, signaling confidence in continued growth driven by strong sales, improving mid-cycle businesses, and ongoing productivity initiatives. DuPont's strategic focus on emerging markets and new product development for agriculture, photovoltaics, and alternative energy appears to be paying off, positioning the company well for future growth despite ongoing global economic uncertainties.
Financial Highlights
49 data points| Revenue | $8.62B |
| R&D Expenses | $404.00M |
| SG&A Expenses | $1.02B |
| Operating Expenses | $7.51B |
| Operating Income | $1.66B |
| Interest Expense | $103.00M |
| Net Income | $1.17B |
| EPS (Basic) | $1.27 |
| EPS (Diluted) | $1.26 |
| Shares Outstanding (Basic) | 907.10M |
| Shares Outstanding (Diluted) | 914.55M |
Key Highlights
- 1Significant increase in net sales for both the quarter (+26%) and six months (+25%) ended June 30, 2010, driven by volume and price increases.
- 2Net income attributable to DuPont saw substantial growth, rising to $1.16 billion in Q2 2010 from $0.42 billion in Q2 2009, and $2.29 billion year-to-date from $0.91 billion in H1 2009.
- 3Full-year 2010 earnings outlook raised to $3.00-$3.15 per share, indicating strong management confidence.
- 4Emerging markets are a key growth driver, with sales increasing 32% and representing 28% of total company sales.
- 5Segments like Electronics & Communications, Performance Chemicals, Performance Materials, and Safety & Protection showed strong performance, with significant sales and income improvements, often benefiting from the absence of prior-year restructuring charges.
- 6The company's liquidity remains strong with $4.0 billion in cash and cash equivalents and marketable securities, and access to approximately $2.5 billion in unused credit lines.
- 7Free cash flow was negative for the first six months ($924 million outflow), but the company expects full-year free cash flow to exceed $1.7 billion.