DuPont Reports Strong Fourth Quarter

By Scott C. Lucas|24 January 2007

For the fourth quarter, net income for company rose to US $871 million. Net sales for the quarter increased 8% to US $6.28 billion from $5.83 billion in the previous-year quarter. While domestic sales shrank, sales volume outside the US sales grew 4%, reflecting higher sales of engineering and packaging polymers, elastomers, and crop protection and seed products.

Ag Surges

On a segmental basis, Agriculture and Nutrition segment sales surged 17% to US $1.10 billion from US $939 million in the year-ago quarter on increased sales of seed and crop protection chemicals. This growth helped drive the company’s fiscal year 2006 net income to US $3.15 billion from $2.06 billion in the previous year.

The company said in December that it would reduce approximately 1,500 positions globally as well as close or streamline manufacturing units at about 10 sites as part of its efforts to consolidate manufacturing assets, leverage technology centers, and refocus product marketing strategies in its nutrition and crop protection business. The company said that it plans to increase investment in plant genetics, biotechnology, and other high-value growth opportunities, while further improving competitiveness in low-growth areas of its nutrition and crop protection businesses by reducing operating costs by about US $100 million a year. Under the plan, the company said that it would reinvest all of the US $100 million savings into its seeds business.

Also last month, DuPont revealed that its subsidiary Pioneer Hi-Bred International, Inc. formed a joint venture with China-based seed production company, Dunhuang Seed Co. Ltd., to provide top-performing corn hybrids to Chinese farmers in the spring market. DuPont also stated that the venture intends to produce seed in 2007 for sale in 2008.