DuPont 2009 Annual Report Download - page 29

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Part II
ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS, continued
food products, dairy-alternative products and nutritional products. Nutrition & Health anticipates improved volume
growth in its specialty food ingredients.
2009 versus 2008 Sales were $8.3 billion, a 4 percent increase versus the prior year, reflecting 5 percent higher USD
selling prices, partially offset by a 1 percent decrease in volume. The higher USD selling prices is related to Pioneer
seeds and Crop Protection proprietary insect, weed and disease control products, partially offset by unfavorable
currency impacts in Europe, Canada and Latin America, as well as the impact of significantly lower market-driven
pricing for glyphosate resale. The decrease in volume was primarily due to lower sales of Crop Protection disease and
insect control products, and lower sales of Nutrition & Health products largely offset by higher Pioneer corn and
soybean seed sales market share gains in North America.
PTOI for 2009 was $1.2 billion, up 13 percent versus the same period last year, principally due to the higher sales and
higher value product mix, partially offset by unfavorable currency impacts globally.
2008 versus 2007 Sales of $8 billion were 16 percent higher, reflecting 14 percent higher USD selling prices and
3 percent higher volume, partially offset by a 1 percent reduction from portfolio changes. The volume growth reflects
higher Pioneer sales due to increased demand for corn seeds in Europe and Brazil and record soybean seed sales in
North America and Brazil due to market share gains and increased acreage shift from corn. The volume growth was
also due to higher sales of Crop Protection products, mostly due to strong global demand for disease and insect
control products, as well as corn and cereal weed control products in Europe. The higher USD selling prices reflect
higher value product mix, pricing actions to offset the increases of raw materials costs and favorable currency impacts
across all regions.
PTOI for 2008 was $1.1 billion, up 22 percent versus $894 million in 2007, principally driven by increased sales and
higher value product mix, partially offset by continued funding of strategic growth investments in research and
development and sales and marketing.
Outlook All of the segment’s businesses anticipate continued growth in 2010. Segment earnings are expected to
benefit in particular from increased Pioneer corn and soybean value offerings. Pioneer will continue to build on its North
American product offerings with the addition of 29 new soybean varieties and 80 new Pioneerbrand corn hybrids.
Pioneer anticipates continued market share gains in key corn and soybean markets including the U.S., Canada and
Latin America. In addition, Pioneer expects to drive value-based pricing coupled with continued technology adoption
and penetration. The introduction of new DuPont Crop Protection products and technology is projected to support
volume and targeted market segment share gains in growth and emerging markets. However, price pressure on crop
protection products is expected to intensify after three years of positive momentum, and combined with higher
projected production and raw material costs, are expected to moderate results. Continued productivity and business
improvement actions across the segment will continue to reduce the impact of rising costs.
Segment Sales PTOI
(Dollars in billions) (Dollars in millions)
2009 $1.9 $ 87
2008 $2.2 $251
2007 $2.1 $314
Electronics & Communications is a leading supplier of enabling materials and systems for alternative energy,
electronics, flat panel displays and advanced printing. The segment leverages DuPont’s strong materials and
technology base to target growth opportunities for its products in markets such as semiconductors, photovoltaics,
displays, packaging graphics, and ink-jet printing. In the fast growing photovoltaics market, the company continues to
be a leading supplier of conductors and fluoropolymer films for crystalline silicon cell and module manufacturers. To
28
ELECTRONICS & COMMUNICATIONS