DuPont 2011 Annual Report Download - page 28

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Table of Contents
Part II
ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS, continued
PERFORMANCE MATERIALS
(Dollars in millions) 2011 2010 2009
Segment sales $ 6,815 $ 6,287 $ 4,768
PTOI $ 971 $ 994 $ 287
PTOI margin 14% 16% 6%
2011 2010
Change in segment sales from prior period due to:
Selling price 13 % 7 %
Volume (4)% 27 %
Portfolio / Other (1)% (2)%
Total change 8 % 32 %
2011 versus 2010 Higher selling prices reflects pricing actions which offset higher feedstock costs. Lower sales volume reflects broad-based channel
destocking with softening in consumer and industrial markets in the second half 2011, and production-related supply issues in ethylene-based polymers.
2011 PTOI was essentially flat. 2011 PTOI included a $49 million benefit from the gain on the sale of a business. 2010 PTOI included a combined $58
million gain on an asset purchase due to the acquisition and early termination of a supply agree ment, a gain on the sale of a business and an insurance
recovery. Lower PTOI margin primarily reflects feedstock costs increasing at a higher rate than selling prices.
2010 versus 2009 Higher sales volume was led by broad-based demand across all markets, particularly in automotive and electronics markets, with strong
volume recovery in all regions, led by Asia Pacific. Higher selling prices were a combination of stronger product sales mix and higher selling prices in
response to higher feedstock costs.
2010 PTOI and PTOI margin increases were primarily driven by higher sales volume, particularly in automotive, electronic and packaging markets, as well as
higher selling prices and improved productivity.
Outlook 2012 sales are expected to grow due to anticipated increases in global motor vehicle OEM builds. The segment is expected to benefit in the second
half 2012 from broader recovery in industrial markets, while demand in the packaging market is expected to continue to be stable. PTOI is also expected to
improve due to the impact of higher sales, improved fixed cost productivity and science-based innovations for products and processes.
SAFETY & PROTECTION
(Dollars in millions) 2011 2010 2009
Segment sales $ 3,934 $ 3,364 $ 2,811
PTOI $ 500 $ 454 $ 260
PTOI margin 13% 13% 9%
2011 2010
Change in segment sales from prior period due to:
Selling price 6% —%
Volume 4% 20%
Portfolio / Other 7% —%
Total change 17% 20%
2011 versus 2010 Sales growth occurred in all regions. Sales growth primarily reflects the impact of the MECS acquisition and higher selling prices,
including a favorable currency impact. Higher volume primarily reflects increased demand for aramid and nonwoven products primarily in the industrial
markets in the first half 2011, with slower growth rates in the second half 2011.
25