DuPont delivers strong results in second quarter

 DuPont’s second-quarter 2011 earnings were $1.37 per share, up 17 percent versus $1.17 per share in the prior year, excluding significant items from both periods. Reported second-quarter 2011 earnings were $1.29 per share, including significant item charges of $.08 per share related to the acquisition. Reported second-quarter 2010 earnings were $1.26 per share. Sales increased 19 percent to $10.3 billion with 11 percent higher local prices, 2 percent higher sales volume, 3 percent currency benefit and a 3 percent net increase from portfolio changes. Sales in developing markets grew 29 percent and represent 30 percent of total sales.

Strong performances in Agriculture, Performance Chemicals and Safety & Protection, and the acquisition of Danisco contributed to a 20 percent increase in segment pre-tax operating income, excluding significant items.  The company is on track versus its full-year 2011 productivity targets for fixed costs and working capital.  Year-to-date fixed cost productivity totals more than $180 million.

“Our strong second-quarter sales growth across all segments and regions resulted from consistent global execution and customer-focused innovation,” said DuPont Chair and CEO Ellen Kullman.  “We are increasing our earnings outlook for 2011 based on strong performance year–to-date and confidence in our business plans for the second half of the year.  Longer term, we expect additional compelling growth opportunities across our businesses stemming from science-powered innovations and collaboration, including the integration of Danisco’s world-class enzymes, fermentation and specialty food ingredients capabilities with DuPont’s strong industrial biosciences and nutrition & health offerings.”

The company increased its full-year 2011 earnings outlook, excluding significant items, to a range of $3.90 to $4.05 per share.  The increase reflects strong second-quarter results, the expectation for continued global economic growth and about $.05 per share full-year operating earnings from Danisco on an underlying basis. Prior guidance was a range of $3.65 to $3.85 per share, excluding the impact of Danisco.  The company’s estimate for the impact of the Danisco acquisition on full-year reported earnings is now a reduction of $.18 to $.29 per share, versus the previous estimate of a $.30 to $.45 per share reduction. The current view is based on anticipated full-year Danisco operating earnings of about $.05 per share and significant item charges related to the acquisition estimated to be $.23 to $.34 per share. In addition to these Danisco charges, the company expects a $.03 per share significant item charge in the third quarter associated with a licensing agreement.

 

Following a Strong First Quarter, Wacker Expects Further Growth

Following a strong first quarter, Wacker Chemie AG expects further sales and earnings gains for full-year 2011. Rudolf Staudigl, CEO of the Munich-based chemical company, underscored this point at Wacker’s 2011 Annual Shareholders’ Meeting. “Wacker is poised for further growth,” he said. Staudigl reaffirmed the full-year forecast and said that sales should cross the €5-billion mark, and earnings before interest, taxes, depreciation and amortization (EBITDA) should exceed 2010’s €1.19 billion level.

Of 2010’s Group net income of €497.0 million (2009: €-74.5 million), Wacker is paying out a total of €159.0 million (2009: €59.6 million) to its shareholders. The dividend per dividend-entitled share is €3.20 (2009: €1.20). The Executive and Supervisory Boards’ other proposals were also adopted by large majorities.

Following a very good fiscal 2010, Wacker further increased both sales and earnings in Q1 2011. Sales at the Munich-based chemicals Group climbed 21 percent to €1.29 billion from January through March 2011 (Q1 2010: €1.07 billion) – primarily due to higher sales volumes. A positive market environment and strong customer demand fueled Wacker’s continued business growth. The sales gain was additionally supported by higher prices in some key product segments. EBITDA achieved even stronger growth, climbing to €351.0 million in Q1 2011 (Q1 2010: €253.7 million), up 38 percent.

“After a short lull, Wacker has resumed its growth trajectory,” said CEO Rudolf Staudigl, addressing the company’s shareholders in Munich on Wednesday. “The broad economic recovery, spanning every industry, contributed substantially to our strong performance last year. Other factors were just as important, though. When demand slumped in 2009, we neither questioned our strategic course, nor did we abandon our sound core financial policies,” the CEO underscored. According to Staudigl, the Group will continue its efforts this year to enhance cost structures, processes and competitiveness. He added that Wacker was optimistic about the future in light of steady strong customer demand.