DuPont 2005 Annual Report Download - page 38

Part II
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations–Continued
Outlook Safety & Protection will continue to drive growth in its product lines globally with the strength of its brands. U.S. and
global demand for aramids is expected to remain strong. Continued U.S. and local level homeland security funding is expected
during 2006 and will support growth in personal protective systems. The construction, personal protection, medical packaging
and medical fabrics market segments are expected to grow during the year. Margins are likely to be pressured by energy and
transportation related costs and competition. Overall, Safety & Protection expects continued revenue growth and moderate
earnings growth in 2006 based on continued market penetration, the introduction of new products and technologies, and
continued investment in its growth initiatives. This segment manufactures products that could be affected by uncertainties
associated with PFOA. See the discussion on Page 49 under the subheading PFOA.
Segment
Sales PTOI
(Dollars in billions) (Dollars in millions)
2005 N/A N/A
2004 $3.3 $ (515)
2003 6.9 (1,892)
On April 30, 2004, the company sold INVISTA to Koch for $3,844 million, except for the transfer of certain equity affiliates.
Additional details regarding Textiles & Interiors are contained in Note 5 to the Consolidated Financial Statements. In 2005,
financial transactions related to the remaining assets of Textiles & Interiors are reported in Other.
2004 versus 2003 Sales of $3.3 billion were 53 percent lower than the prior year, principally due to the sale of INVISTA on
April 30, 2004. PTOI was a loss of $515 million in 2004, including $667 million in separation charges. 2003 PTOI was a loss of
$1,892 million primarily associated with the planned separation of INVISTA.
The company combines the results of its developmental and nonaligned businesses under Other. Developmental businesses
include bio-based materials and other growth initiatives. Bio-based materials develops and commercializes novel materials with
superior functionality that offer significant growth potential. DuPont partnered with Tate & Lyle PLC to produce Bio-PDO, the
key building block for DuPont Sorona polymer, using a proprietary fermentation and purification process based on corn
sugar. This bio-based method uses less energy, reduces emissions and employs renewable resources in contrast to traditional
petrochemical processes. The first commercial-scale plant to manufacture Bio-PDO is planned to begin production in 2006.
Research and development focuses on developing high-performance bio-based materials to target long-term growth opportuni-
ties. Nonaligned businesses includes 2005 activities related to the remaining assets of Textiles & Interiors, and costs associ-
ated with Benlate fungicide and other discontinued businesses. In the aggregate, sales in Other for 2005, 2004 and 2003
represent less than one percent of total segment sales.
2005 pretax losses were $78 million compared to a loss of $242 million in 2004. The improvement in 2005 reflects a net gain of
$62 million relating to the disposition of four equity affiliates. The 2004 loss includes $94 million for employee separation
activities, a $29 million charge to write off abandoned technology, and a $20 million benefit from insurance proceeds related to
Benlate litigation.
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TEXTILES & INTERIORS
OTHER