DuPont 2014 Annual Report Download - page 28

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Part II
ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS, continued
27
INDUSTRIAL BIOSCIENCES
(Dollars in millions) 2014 2013 2012
Segment sales $ 1,258 $ 1,224 $ 1,180
PTOI $ 198 $ 170 $ 159
PTOI margin 16% 14% 13%
2014 2013
Change in segment sales from prior period due to:
Price 1% 2%
Volume 2% 2%
Portfolio / Other —% —%
Total change 3% 4%
2014 versus 2013 Full year 2014 segment sales of $1.3 billion increased $0.03 billion, or 3 percent, on increased enzyme
demand, principally for ethanol production, food and animal nutrition, driven by new product offerings. Ethanol industry
fundamentals are adjusting to a lower energy cost environment but demand for the company's novel enzymes and other functional
bio products designed to increase production rates, yield and efficiency remained steady.
2014 PTOI and PTOI margin increased from higher volumes and improved product mix, which were partially offset by a net
change in restructuring charges of $14 million (see Note 3 to the Consolidated Financial Statements for additional information
related to the 2014 restructuring program).
2013 versus 2012 The sales increase represents higher prices and demand for Sorona® polymer for carpeting and increased
demand for enzymes for food, partially offset by lower enzyme demand for U.S. ethanol production.
2013 PTOI and PTOI margin increased slightly reflecting pricing gains and increased demand for Sorona® polymer for carpeting.
Outlook For 2015 sales are expected to be flat, with volume growth offset by a negative currency impact. PTOI is expected to
be up in the high teens on a percentage basis driven by higher volumes and stronger product mix.