DuPont Increases Product Prices - Analyst Blog
August 03 2011 - 11:54AM
Zacks
EI
DuPont de Nemours & Co.
(DD) has announced price
increases for all DuPont Ti-Pure titanium dioxide (TiO2) grades
sold in North America (United States and Canada) by 10 cents per
pound, effective August 15, 2011.
DuPont
reported an increase in profit of $1.22 billion or $1.37 per share
in the second quarter of 2011 versus $1.16 billion or $1.17 per
share in the same quarter of 2010. The profit exceeded the Zacks
Consensus Estimate by 4 cents per share.
The
improvement in profit was attributable to higher selling prices,
increased sales volume and currency benefit, partly offset by
higher raw material, energy and freight costs.
Sales in the
quarter grew 19% to $10.3 billion, up from the Zacks Consensus
Estimate of $9.95 billion. The increase in sales reflected a rise
of 2% in sales volume, an increase of 11% in local price, 3%
currency benefit and 3% net increase from portfolio changes. Sales
in the developing markets rose 29%.
DuPont had
cash and cash equivalents of $2.3 billion as of June 30, 2011
compared with $4.3 billion as of December 31, 2010. Long-term
borrowings and capital lease obligations amounted to $12.5 billion
as of June 30, 2011 versus $10.1 billion as of December 31,
2010.
As of June
30, 2011, DuPont had a net cash flow of $644 million from operating
activities versus $424 million as of June 30, 2010. Meanwhile,
capital expenditures increased to $741 million from $500 million in
the year-ago period.
DuPont
upgraded its full-year 2011 earnings outlook to $3.90–$4.05 per
share from its previous forecast of $3.65–$3.85 per share. This
revision was attributable to the company’s strong earnings results,
the expectation for continued global economic growth and about $.05
per share full-year operating earnings from Danisco on an
underlying basis.
The
company's estimate for the impact of the Danisco acquisition on
full-year reported earnings is at present a reduction of $.18 to
$.29 per share, versus the previous estimate of $.30 to $.45 per
share. 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.
DuPont is a
global chemical and life sciences company, employing more than
60,000 people worldwide with a diverse array of product offerings.
With over 21,000 patents and 15,000 patent applications worldwide,
DuPont sells its products in diverse markets, such as
transportation, construction, apparel, agriculture, nutrition and
health, packaging and electronics markets.
DuPont faces
stiff competition from BASF SE
(BASFY) and
The Dow
Chemical Company (DOW).
The company
currently retains a Zacks #1 Rank on its stock, which translates
into a short-term Strong Buy. In addition, we reiterate our
Outperform recommendation on the stock for the long
term.
BASF AG-ADR NEW (BASFY): Free Stock Analysis Report
DU PONT (EI) DE (DD): Free Stock Analysis Report
DOW CHEMICAL (DOW): Free Stock Analysis Report
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