DuPont has clear plans to achieve aggressive growth through 2012, DuPont CFO says
DuPont Senior Vice President and Chief Financial Officer Nicholas C. Fanandakis said that DuPont has clear plans to achieve aggressive growth through 2012. Speaking during a recent conference, he noted the company’s priorities are providing solutions to significant issues facing the world including increasing food production; decreasing dependence on fossil fuels; protecting people and the environment; delivering increased penetration in emerging markets; and driving cost and productivity improvements.
“We have a razor-like focus on the key elements for long-term growth,” said Fanandakis.
“DuPont has a unique capability through our market-driven science to meet demand driven by megatrends and therefore capitalize on these opportunities,” he added.
In 2009, DuPont invested about USD 1.4 billion in R&D, more than 75 per cent of which was directed toward these trends. Also in 2009, more than 70 per cent of the company’s capital expenditures address megatrend needs in areas such as expanding seed production to improve agriculture productivity, expanding capacity for DuPont™ Kevlar® aramid fiber for personal protection, and expanding capacity for photovoltaics materials for solar cells, all in line with significantly increased demand.
“In emerging markets, in particular, DuPont has attractive opportunities to take our science and apply it to specific needs for local customers,” said Fanandakis.
In 2009, 30 percent of DuPont sales were in emerging markets. By 2012, the company expects sales from these markets to total about USD 12 billion, or 35 percent of total sales.
Fanandakis reaffirmed the company’s commitment to deliver about 20 percent compound annual earnings growth for the 2009-2012 periods. By executing on priorities, DuPont expects to generate about 10 per cent top-line compound annual growth for the 2009-2012 periods. As previously disclosed, the company also plans to capture USD 1 billion in fixed cost productivity and USD 1 billion in working capital productivity gains during the 2010-2012 timeframe. Additionally, Fanandakis reaffirmed the company’s 2010 earnings per share guidance at a range of USD 2.50-2.70 per share.
DuPont is a science-based products and services company. Founded in 1802, DuPont puts science to work by creating sustainable solutions essential to a better, safer, healthier life for people everywhere. Operating in approximately 80 countries, DuPont offers a wide range of innovative products and services for markets including agriculture and food; building and construction; communications; and transportation.