Wilmington, DE, July 29--Dupont's profit rose 24% in the second quarter on a 10% increase in revenue.
The Wilmington, DE, maker of chemicals manufacturer reported net income of $675 million, or 67 cents a share, compared with $543 million, or 54 cents a share, a year earlier. The latest quarter's increase in income principally reflects the absence of charges for restructuring and other costs, which hurt the year-earlier period, the company said.
The latest quarter includes after-tax gains of $52 million, or five cents a share, while the year-earlier quarter included several charges and gains that reduced earnings by a net $168 million, or 17 cents a share.
Excluding those items, the company said it earned 62 a share, compared with 71 cents a share a year earlier. In the latest quarter, "significantly higher raw-material costs and noncash pension expense were partly offset by benefits from lower taxes, currency and reductions in other fixed costs," the company said.
Revenue rose 10% to $7.4 billion from $6.7 billion. DuPont said the latest quarter's revenue includes a 1% benefit from higher local selling prices, a 5% gain from foreign exchange and 4% growth from the net impact of acquired and divested businesses.
Analysts surveyed by Thomson First Call had expected DuPont to report earnings of 57 cents a share excluding items, on revenue of $7.29 billion.
The agriculture and nutrition division and its safety and protection segment "delivered strong double-digit revenue and earnings growth" for both the second quarter and the first half, the company said. "This strong performance, together with a lower effective tax rate across all segments, helped mitigate the effects of significantly higher raw-material costs" in DuPont's textiles and interiors unit and its performance materials operations.
"Our businesses are performing well in a difficult economy. We continue to drive top line growth while controlling costs, improving productivity and investing for the future," said DuPont Chairman and Chief Executive Officer Charles O. Holliday, Jr. "Our operating discipline is helping to offset significant increases in the cost of energy and raw materials."
Earlier this year, DuPont said it was negotiating the possible sale of its textiles and interiors unit. As part of a global restructuring, DuPont said it planned to set up the unit as a new wholly owned subsidiary and separate it from the company by the end of 2003.
Textiles & Interiors (DTI) had sales of $1.8 billion. Excluding the impact of the change in management reporting for intersegment
transfers, sales were down 2%. This reflects 6% lower volume partly offset by 4% higher U.S. dollar selling prices.
ATOI was $17 million versus a loss of $50 million last year. Setting aside special items, ATOI was $7 million versus $93 million last year. This reflects significantly higher raw material and non-cash pension costs, partly offset by reductions in cash fixed costs.
