DuPont 2008 Annual Report Download - page 21

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Item 7. Management’s Discussion and Analysis of Financial Condition and
Results of Operations, continued
Analysis of Operations
(Dollars in millions) 2008 2007 2006
NET SALES $30,529 $29,378 $27,421
2008 versus 2007 Consolidated net sales for 2008 were $30.5 billion, up 4 percent. This reflects 10 percent sales
growth through September 30, partly offset by a 17 percent year-over-year sales decline in the fourth quarter,
precipitated by a significant decline in demand. Full year sales reflect a 7 percent increase in local selling prices and
3 percent favorable currency exchange, partly offset by 5 percent lower volume and a 1 percent reduction from
portfolio changes. Worldwide sales volumes reflect a modest increase outside the U.S. driven by growth in emerging
markets, more than offset by significantly lower volumes in the company’s major polymer, chemical, material, and
electronic product lines sold in the U.S. and Western Europe.
The table below shows a regional breakdown of 2008 consolidated net sales based on location of customers and
percentage variances from prior year:
(Dollars in billions)
2008
Net Sales
Percent
Change vs.
2007
Local
Price
Currency
Effect Volume Portfolio
Percent Change Due to:
Worldwide $30.5 4 7 3 (5) (1)
United States 11.0 (2) 8 - (10) -
Europe 9.5 8 5 7 (4) -
Asia Pacific 5.5 6 6 2 - (2)
Canada & Latin America 4.5 9 9 4 (3) (1)
2007 versus 2006 Consolidated net sales for 2007 were $29.4 billion, up 7 percent. This growth was principally the
result of an 11 percent increase in sales outside of the U.S., reflecting in part the benefit of a weaker U.S. dollar
(USD), which added 3 percent to worldwide sales. Worldwide volumes and local selling prices each increased
2 percent. Sales in the U.S. increased 1 percent reflecting 3 percent higher selling prices, partially offset by 2 percent
lower volume. The decrease in U.S. sales volume was primarily due to lower demand for the company’s products
related to construction and motor vehicle production markets. Sales in Canada and Latin America increased
15 percent, primarily due to a 10 percent volume increase reflecting a substantial increase in sales of seed and crop
protection products in South America.
The table below shows a regional breakdown of 2007 consolidated net sales based on location of customers and
percentage variances from prior year:
(Dollars in billions)
2007
Net Sales
Percent
Change vs.
2006 Local Price
Currency
Effect Volume
Percent Change Due to:
Worldwide $29.4 72 3 2
United States 11.3 1 3 - (2)
Europe 8.8 12 2 8 2
Asia Pacific 5.2 82 2 4
Canada & Latin America 4.1 15 2 3 10
19
Part II