DuPont exploring alternatives for performance chemicals, Kullman says

In DuPont's (DD +0.3%) Q3 earnings call, CEO Ellen Kullman says that despite the hit in performance chemicals operating earnings and an anticipated negative currency impact of more than $0.80/share, she anticipates overall FY 2013 earnings of $3.85/share.

Kullman said DD is exploring several strategic alternatives for the unit, which generates significant cash but is subject to highly volatile markets; she did not provide details or a timeline for deciding the future of the unit, which could be sold or spun off.

Performance chemicals' volume rose 12% but it was not enough to offset steep price declines for titanium dioxide, refrigerants and fluoropolymers, along with higher raw material inventory costs; the unit's operating earnings fell 38% to $254M.

From other sites
Comments (1)
  • funfundvierzig
    , contributor
    Comments (5048) | Send Message
    Ms. Kullman, DuPont Chieftess, appears to be dumping the TIO2 business near the bottom of the cycle for demand and price. Perversely, she would be following in the footsteps of her predecessor and mentor, Chad Holliday, who as DuPont Chief 15 years ago dumped wholly-owned Conoco, Inc. when oil was trading for $11 a barrel.


    Ironically, DuPont Titanium Technologies is about the last business in which the already much shrunken DuPont conglomerate is the true global leader and largest producer.


    Given the fact, Ms. Kullman has repeatedly proclaimed to the media she is running a "science-based food, fuel, and protection" boutique, we strongly suspect a lot more than TIO2 will be dumped in coming quarters and years.


    It remains to be seen as to whether the odd Holliday/Kullman strategy of SHRINKAGE equals GROWTH pans out for DD shareholders; it certainly has not for a decade and a half.


    22 Oct 2013, 01:47 PM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs