DuPont 2009 Annual Report Download - page 34

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Part II
ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS, continued
2008 PTOI was $128 million compared to $626 million in 2007. 2008 PTOI includes charges related to hurricane
damages of $216 million. In addition, as part of the company’s restructuring program, the segment recorded a charge
of $94 million to cover employee termination costs and other asset related charges. The decline in PTOI was also
influenced by charges associated with low capacity utilization of production units to reduce inventories due to the
decreased demand. The decrease in PTOI in 2008 was partially offset by the absence of a $165 million impairment
charge in 2007 to write down the company’s investment in a polyester films joint venture.
Outlook 2010 sales are expected to grow due to anticipated increases in global motor vehicle OEMs builds and
continued recovery from the global economic recession for most of the markets served by the segment. PTOI is also
expected to improve due to the impact of higher sales, improved fixed cost performance, benefits from the company’s
2008 and 2009 restructuring programs and market-driven innovations for products and processes.
Segment Sales PTOI
(Dollars in billions) (Dollars in millions)
2009 $2.8 $ 260
2008 $3.7 $ 661
2007 $3.7 $1,032
Safety & Protection’s businesses satisfy 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, the segment delivers products and services to a large number of markets including, construction,
transportation, communications, industrial chemicals, oil and gas, electric utilities, automotive, manufacturing,
defense, homeland security and safety consulting. The following are Safety & Protection’s operating businesses:
Protection Technologies is focused on finding solutions to protect lives, property, critical processes, and the
environment. With products like DuPontTM Kevlarand Nomexthe business continues to hold strong positions in life
protection markets and meet the 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 around
the world.
Building Innovations is committed to the building science behind increasing the performance of building systems,
helping reduce operating costs and creating more sustainable structures. The business is a market leader of solid
surfaces through its Corian, Montelliline of products which offer durable and versatile materials for residential and
commercial purposes. Other products such as Tyvekand Typaroffer leading solutions for the protection and energy
efficiency of the buildings.
Sustainable Solutions continues to help organizations worldwide reduce workplace injuries and fatalities while
improving operating costs, productivity and quality. Sustainable Solutions is a leader in the safety consulting field,
selling training products, as well as consulting services. Additionally, Sustainable Solutions 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 2008, the company completed the
acquisition of Coastal Training Technologies Corp., which is one of the world’s leading publishers of safety, industrial
skills and employee development training programs.
2009 versus 2008 Sales of $2.8 billion were 25 percent lower than last year, due to a 23 percent decline in volume and
3 percent lower USD selling prices, partially offset by a 1 percent increase from portfolio changes. The lower volume
reflects decreased demand for products across all markets and regions due to the impact of the current economic
downturn. The lower USD selling prices were mainly due to unfavorable currency impact in Europe and Asia Pacific.
PTOI was $260 million compared to $661 million in the prior year. The decrease in earnings was primarily due to the
impact of lower volumes and charges associated with low capacity utilization of production units, partially offset by
fixed costs reductions.
33
SAFETY & PROTECTION