DuPont Titanium Technologies, a subsidiary of EI DuPont de Nemours & Co. (DD), announced net price increase of $500 per metric ton for all DuPont Ti-Pure titanium dioxide grades (TiO2) sold in Asia Pacific, effective October 1, 2011.
On July 28, 2011, DuPont reported an increase in profit of $1.22 billion or $1.37 per share in the second quarter of 2011 from $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 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 approximately $0.05 per share full-year operating earnings from Danisco on an underlying basis.
DuPont is a science-based product and services company, ranked sixth in crop protection chemicals and second in seeds. The company continues to execute its strategy of enhancing its offshore reach, expanding its presence in newer chemical technologies and shoring up agricultural operations.
DuPont faces stiff competition from BASF SE and The Dow Chemical Company (DOW).
The company currently retains a Zacks #2 Rank, which translates into short-term Buy rating. In addition, we reiterate our Outperform recommendation on the stock for the long term.
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