DuPont posts 4Q profit on strong Asia demand

DOVER, Del. -- Improved sales across its global markets and lower raw material and energy costs led to a fourth-quarter turnaround for DuPont and prompted the chemical company to boost its 2010 outlook.

The Wilmington-based company on Tuesday reported net income of $441 million, or 48 cents per share, compared to a loss of $629 million, or 70 cents per share, for the fourth-quarter of 2008.

Global sales increased 10 percent in the quarter to $6.4 billion, led by stronger demand for titanium dioxide, electronic materials, seed products and performance polymers. Volumes were up in all regions, led by a 34 percent jump in Asia-Pacific markets, where sales topped levels seen before the global recession.

Net income excluding significant items was $402 million, or 44 cents a share, versus a loss of $249 million or 28 cents per share in the prior year. The results topped analysts expectations for profit of 41 cents per share on revenue of $6.16 billion.

Shares rose about 1.4 percent in premarket trading to $33.30.

Full year earnings were $1.76 billion, or $1.92 per share, compared to $2 billion, or $2.20 per share, in 2008.

The company increased its full-year 2010 earnings guidance to a range of $2.15 to $2.45 per share, up from its previous guidance of $2.10 to $2.40 per share.

CEO Ellen Kullman said DuPont cut fixed costs by more than $1 billion last year and remains committed to compound annual growth targets of 10 percent for revenue and 20 percent for earnings through 2012.

"In 2010, we will continue the momentum generated from last year's aggressive cost-cutting and cash-generating actions," Kullman said.

U.S. sales declined 2 percent in the fourth-quarter. Lower prices were partly offset by a volume increase of 4 percent. Overseas results also reflected lower local prices, as well as a 4 percent positive impact from currency exchange rates.

Volumes increased for four of the company's business units but were down 2 percent in performance coatings and 9 percent in the safety and protection segment.

DuPont said performance coating results reflected continued industrial market weakness in developed regions, partly offset by higher demand from automakers. The safety and protection unit saw sales in automotive and consumer markets rebound while demand in industrial and law enforcement markets continued to lag.

The electronics and communications unit posted a 22 percent sales gain on 13 percent higher volume. Sales increased 20 percent for performance materials, led by 24 percent higher volume.

DuPont's agriculture and nutrition unit, which has been of its few bright spots during the economic downturn, saw sales increase 12 percent to $1.4 billion, reflecting 25 percent higher seed volume and 5 percent higher crop protection product volumes.