DuPont reports strong first quarter 2011
First quarter 2011 consolidated net sales
of $10 billion were 18 percent higher than
the prior year, reflecting nine percent
higher volume, eight percent higher local
prices and a one percent net increase from
portfolio changes.
First quarter 2011 net income attributable to DuPont increased 27 percent to
$1.431 billion versus $1.129 billion in
2010. The increase reflects higher sales volume and selling prices, partly offset by a
$171 million decline in Pharmaceuticals
pre-tax income due to patent expirations.
Fixed costs improved to 35 percent of sales
from 37 percent in the first quarter 2010.
Segment pre-tax operating income
(PTOI) for first quarter 2011 was $2.125
million compared to first quarter 2010
PTOI of $1.803 million. The increase in
PTOI principally reflects earnings improvements in all segments, partly offset
by lower Pharmaceuticals income.
DuPont’s Performance Chemicals sales
of $1.8 billion were up 27 percent, with 21
percent higher selling prices and six percent
higher volume. Sales increased across all regions, especially in the U.S. and Asia Pacific.
Higher selling prices stemmed from strong
global demand for titanium dioxide, refrigerants and fluoroproducts. PTOI was $394
million, increasing $204 million due to
higher selling prices and volume.
DuPont’s Performance Coatings sales
of $1 billion were up 10 percent, reflecting
six percent higher selling prices and four
percent higher volume. Global automotive
markets improved primarily due to a significant increase in North American auto
builds. Strong demand continued in industrial coatings, particularly in the North
American heavy-duty truck market. PTOI
was $65 million, an improvement of $20
million versus prior year on strong sales
and operating leverage.
Sherwin-Williams reports first
quarter 2011
The Sherwin-Williams Company announced its financial results for the first
quarter ended March 31, 2011. Compared to the same period in 2010, consolidated net sales increased $290.1 million,
or 18. 5 percent, to $1.86 billion in the
quarter due primarily to acquisitions and
selling price increases. Acquisitions and favorable currency translation rate changes
increased consolidated net sales nine percent and 1.2 percent, respectively.
Net sales in the Paint Stores Group increased 9.2 percent to $929.3 million in
the quarter due primarily to selling price
increases, improving domestic architectural paint sales to DIY and residential repaint customers and improving protective
and marine product sales. During the
quarter, net sales from stores open for
more than twelve calendar months increased 8. 9 percent over last year’s first
quarter. Paint Stores Group segment profit
increased to $68.9 million in the quarter
from $47.8 million last year due primarily
to selling price increases partially offset by
raw material cost increases. Segment
profit as a percent to net sales increased to
7. 4 percent from 5. 6 percent last year.
Net sales of the Consumer Group increased one percent to $294.9 million in
the quarter due primarily to selling price
increases and the timing of seasonal shipments to some customers partially offset
by the elimination of a portion of a paint
program with a large retail customer. Segment profit increased to $41.1 million in
the quarter from $37.5 million last year.
Segment profit as a percent of net external sales increased to 13. 9 percent from
12. 8 percent last year due primarily to
good cost control and selling price increases partially offset by increasing raw
material costs.
The Global Finishes Group’s net sales
stated in U.S. dollars increased 49. 6 percent to $630.2 million in the quarter due
primarily to acquisitions, higher paint
sales volume, selling price increases and
favorable currency translation rate
changes. In the quarter, acquisitions and
favorable currency translation rate
changes increased net sales of the Global
Finishes Group in U.S. dollars by 33. 3
percent and 3. 6 percent, respectively.
Global Finishes Group segment profit in
the quarter increased to $36.8 million
from $23 million in last year’s first quarter due primarily to increased paint sales
volume and good expense control. Foreign currency translation rate changes and
acquisitions increased segment profit in
the quarter by $1.6 million. As a percent
to net external sales, segment profit was
5. 8 percent in the quarter versus 5. 5 percent last year.
“Although domestic demand remains
soft, we are encouraged by the improvement in domestic DIY and protective and
marine sales in the Paint Stores Group
and continued growth in architectural,
protective and marine, OEM and automotive finishes sales in the Global
Group,” said Christopher Connor, chairman and chief executive. “Our Consumer
Group improved their operating results
through disciplined cost management and
selling price increases. Our operating segment management teams continue to control costs and implement price increases
in an effort to keep pace with rising raw
material costs.
“We continued to invest in our Paint
Stores Group business by opening seven
net new locations,” said Connor. “For the
year, we expect to open 50 to 60 net new
stores. Our Global Finishes Group acquired three companies over the past
twelve months, including Acroma and Say-erlack in Europe and Pinturas Condor in
Ecuador. Although these acquisitions had a
small impact on our first quarter consolidated net income they expand our global
reach and provide important assets to support our worldwide business. During the
quarter, we used our cash to continue to
buy shares of stock and we increased the
dividend rate to $.365 from $. 36 last year.
Our balance sheet remains flexible and is
positioned for future acquisitions and investments in our business.
