DuPont 2008 Annual Report Download - page 34

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Item 7. Management’s Discussion and Analysis of Financial Condition and
Results of Operations, continued
restructuring program and customer-driven innovations for products and processes are projected to be offset by soft
global demand.
SAFETY & PROTECTION
Segment Sales
(Dollars in billions)
PTOI
(Dollars in millions)
2008 $5.7 $ 829
2007 $5.6 $1,199
2006 $5.5 $1,080
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», Nomex»and Corian», 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 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.
Safety & Protection continues to strengthen the building envelope and building interiors with offerings that improve
comfort, energy efficiency, air quality and protection from the elements. In 2008, new products introductions from the
Corian»and Tyvek»product families solidified the segment’s market position globally, while enhancing the presence
on commercial construction and remodeling markets.
In the consulting services market, 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.
In 2007, DuPont announced a $500 million investment at its Cooper River site near Charleston, South Carolina and
$50 million at its Spruance site in Richmond, Virginia, 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 second phase
was completed in 2008.
2008 versus 2007 Sales of $5.7 billion were 2 percent higher than last year, due to 9 percent higher USD selling
prices, offset by a 5 percent decline in volume and a 2 percent reduction from a divested business. Decreased
volume primarily reflects lower sales to the U.S. residential and construction markets and the automotive industry,
which accelerated and spread to other key markets during the fourth quarter. The higher USD selling prices primarily
32
Part II