DuPont 2007 Annual Report Download - page 35

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Item 7. Management’s Discussion and Analysis of Financial Condition and
Results of Operations, continued
SAFETY & PROTECTION
Segment Sales
(Dollars in billions)
PTOI
(Dollars in millions)
2007 $5.6 $1,199
2006 $5.5 $1,080
2005 $5.1 $ 994
Safety & Protection satisfies the growing global needs of businesses, governments and consumers for solutions that
make life safer, healthier and more secure. By uniting market-driven science with the strength of highly regarded
brands such as Kevlar», Tyvek»and Nomex», Safety & Protection has built a unique presence in the marketplace
since its inception in 2002.
The segment’s businesses serve customers in diverse markets that include construction, transportation,
communications, industrial chemicals, oil and gas, electric utilities, automotive, manufacturing, defense,
homeland security and safety consulting.
In addition to serving its existing customer base, Safety & Protection is investing in the future by expanding into
emerging markets. Over the past two years the segment has achieved strong double-digit growth in Greater China,
India, Eastern Europe and Latin America. Safety & Protection is focusing its efforts globally on four major value
propositions where it has a distinct competitive advantage: protecting lives, safe and durable buildings, protecting
critical processes and protecting the environment.
DuPont
TM
Kevlar»and Nomex»hold strong positions in the life protection markets due to continued demand for body
armor and personal protective gear for the military, law enforcement personnel, firefighters and other first
responders, as well as for workers in the oil and gas industry and in emerging regions. Global demand for
products that prevent disease and improve productivity in the food, health care and industrial markets continue
to create growth opportunities for the segment’s clean and disinfect offerings. Additionally, the surfaces protection
businesses continue to offer new products that meet demand for sustainable solutions.
In 2007, DuPont announced a $500 million investment at its Cooper River site near Charleston, SC, to significantly
expand production of DuPont
TM
Kevlar»brand fiber for industrial and military uses as well as investments in related
polymer production. The company also announced a multi-product, multi-region expansion plan to increase
worldwide capacity of DuPont
TM
Nomex». The company expects to invest more than $100 million in the three-
part expansion plan for Nomex»; the first phase was completed in 2007.
Safety & Protection continues to strengthen and enhance the building envelope and building interiors with offerings
that improve comfort, energy efficiency, air quality and protection from the elements. In 2007, the business
introduced 40 new products globally, including new Corian»surfaces and the metalized Tyvek»product family.
The business is also taking advantage of substantial growth opportunities in China, India and Eastern Europe while
focusing even more on commercial construction and remodeling markets.
Through its consulting services businesses, Safety & Protection continued to help organizations worldwide reduce
workplace injuries and fatalities while improving operating costs, productivity and quality. DuPont is a leader in the
safety consulting field, selling training products, as well as consulting services. Additionally, Safety & Protection is
dedicated to clean air, clean fuel, and clean water with offerings that help reduce sulfur and other emissions,
formulate cleaner fuels, or dispose of liquid waste. Its goal is to help maintain business continuity and environmental
compliance for companies in the refining and petrochemical industries, as well as for government entities.
2007 versus 2006 Sales of $5.6 billion were 3 percent higher than last year, due to higher USD selling prices
across all businesses within the platform. Sales volumes remained relatively flat as higher sales of Kevlar»and
Nomex»were offset by decreased sales of products for U.S. residential construction markets.
PTOI in 2007 was $1,199 million, an increase of 11 percent over the prior year. The increased earnings were
primarily due to higher sales of Kevlar»and Nomex». 2006 PTOI included a $47 million asset impairment charge
related to an industrial chemical asset held for sale, partially offset by a $33 million benefit from insurance proceeds.
33
Part II