Chemicals giant EI DuPont De Nemours & Co. (DD) Tuesday reported higher profit and sales for the first quarter, led by strong performance in the Agriculture segment. The company reaffirmed its full year 2013 earnings outlook and announced a 5 percent dividend increase.
Net income attributable to DuPont surged to $3.348 billion from $1.492 billion in the previous year. Earnings per share climbed to $3.58 from $1.58.
Operating earnings per share were $1.56, while it stood at $1.64 last year. On average, 19 analysts polled by Thomson Reuters expected earnings of $1.52 per share for the quarter. Analysts' estimates typically exclude special items.
Net sales increased to $10.408 billion from $10.180 billion, reflecting volume growth. One percent increase in local prices was offset by currency impact. Analysts expected revenues of $10.41 billion.
DuPont noted that volume was primarily driven by increases for Agriculture in North America and Latin America.
Agriculture sales increased 14 percent to $4.669 billion, driven by strong volume growth, particularly in North America and Latin America, and higher pricing from new seed and crop protection products. Operating earnings improved 13 percent from last year.
Electronics & Communications sales dropped 9 percent to $616 million amid lower sales in photovoltaic markets. Share gains were more than offset by lower usage of materials per photovoltaic module.
Sales at the Industrial Biosciences segment totaled $289 million and operating earnings rose 5 percent, on higher demand and lower input costs for Sorona polymer for carpeting and growth in food enzymes, partially offset by lower enzyme demand for ethanol production.
Nutrition & Health sales increased 7 percent to $868 million, but operating earnings dropped as pricing gains, demand for probiotics and specialty protein solution as well as the realization of integration synergies were offset by higher raw material costs, primarily in enablers.
Sales declined 17 percent to $1.585 billion in the Performance Chemicals segment, amid substantial price declines in the titanium dioxide market and weak demand for fluoropolymers, particularly in North America and Asia Pacific.
Performance Materials sales were 3 percent lower at $1.559 billion. But operating earnings increased 5 percent due primarily to lower feedstock costs and higher sales volume in packaging markets.
Safety & Protection reported a 4 percent sales drop at $907 million, reflecting significantly reduced demand for military protection products and continued softness in certain industrial markets.
DuPont said cost productivity gains and restructuring savings are on track to meet or exceed full year targets.
Geographically, sales climbed 8 percent in U.S. & Canada to $4.848 billion and improved 4 percent in Latin America to $1.079 billion. Sales dropped 8 percent in Asia Pacific and slid 1 percent in EMEA.
Further, the company reaffirmed its outlook for full-year 2013 operating earnings range of $3.85 to $4.05 per share, up 2 to 7 percent from $3.77 per share earned in 2012, based on continued strong growth in Agriculture and expected overall improvement in global industrial market demand.
For the first half of 2013, the company expects operating earnings per share to be about 7 to 9 percent lower than the first half of 2012, primarily reflecting, as in the first quarter, lower Performance Chemicals earnings from last year's peak levels.
Wall Street expects earnings of $3.89 per share on revenues of $36.14 billion.
DuPont also said its board of directors approved a 5 percent increase in the company's quarterly cash dividend. The second quarter dividend will increase from 43 to 45 cents per share for common stock.
DD closed at $50.41 on Friday.
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