DuPont reports increased second-quarter earnings. Net income increased 8.3% year-on-year to $1 billion. Adjusted earnings were $1.24 per share. up 13.7% year-on-year.
Article continues below
Sales were down 0.8% year-on-year, to $7.1 billion. Year-on-year volumes increased 1% in US and Canada, 6% in Asia Pacific, and 7% in Latin America, but fell 3% in Europe. Volumes increased in agriculture, nutrition and health, and performance materials, but fell in electronics and communications and protection solutions.
Agriculture operating earnings increased 12.0% year-on-year, to $865 million, on flat sales of $3.2 billion. Increased corn seed and insecticide volumes were partially offset by lower soybean volumes. Lower product costs, higher volumes, and cost savings were partially offset by a $36 million negative currency impact.
Performance materials operating earnings increased 8.0% year-on-year, to $325 million, on flat sales of $1.3 billion. DuPont cites cost savings, increased demand in automotive markets, and an ethylene outage in the year-ago quarter.
Nutrition and health operating earnings increased 30% year-on-year, to $130 million, on cost savings and volume growth in probiotics and specialty proteins. Sales increased 1%, to $835 million.
Protection solutions operating earnings increased 3.9% year-on-year, to $188 million, on sales down 2%, to $786 million. Lower product costs and cost savings were partially offset by lower volumes and currency impacts.
Electronics and communications operating earnings increased 4.5% year-on-year, to $93 million, on sales down 6%, to $494 million. Cost savings and lower product costs more than offset lower demand in consumer electronics.
Industrial biosciences operating earnings increased 24.0% year-on-year, to $62 million, on sales down 1%, to $355 million. Sales growth in bioactives from new product introductions in home and personal care and increased biomaterials demand was offset by lower CleanTech volumes.
DuPont raised the lower end of its 2016 earnings forecast. The company now expects earnings of $3.15-$3.20 per share, up from a previous guidance of $3.05-$3.20 per share. ■