The Wall Street Journal-20080123-Dupont Sales Rise on Strength Abroad but Net Still Falls 37-
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Dupont Sales Rise on Strength Abroad but Net Still Falls 37%
DuPont Co.'s profit dropped in the fourth quarter, but the company's sales expanded in a sign of its resilience during a slowdown in the U.S. economy.
The Wilmington, Del., chemical giant said net income fell 37% to $545 million, or 60 cents a share, from $871 million, or 94 cents a share, a year earlier, when results included a $465 million income-tax benefit. Sales rose 11% to on strong growth in developing countries, and as revenue rose 23% in its agriculture and nutrition unit.
"The main takeaway from DuPont's [fourth-quarter] results . . . is the company's global franchise and its ability to offset slower end- market growth in the U.S. through its exposure to the faster growth markets in Asia and Latin America," Hassan Ahmed, an analyst with HSBC Securities Inc., wrote in a research note.
DuPont's shares fell 16 cents to $42.54 in 4 p.m. composite trading on theIn the past few quarters, U.S. chemical companies have been hit by weakness in the U.S. housing and auto industries, two of their biggest revenue generators, and price increases in oil and natural gas, key raw materials for the products they make. As a result, sales from international operations have become increasingly crucial for many companies.
DuPont's policy for the past few years has been to actively add business in regions with rapid economic growth. In the fourth quarter, international sales accounted for 67% of revenue. Overall sales into emerging markets jumped 20%, led by Brazil, China and India, while U.S. sales climbed 5%.
DuPont Chief Executive Charles O. Holliday Jr. voiced confidence in the company's ability to continue growing abroad, despite fears that a U.S. recession could dampen global demand. "I don't see any big alarm signs coming from our people in the field," he said.
