DuPont 2012 Annual Report Download - page 26

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
 continued
2011 versus 2010 Sales were up primarily due to the Danisco acquisition. For Solae, higher selling prices and volume reflect strong demand for specialty
soy products.
2011 PTOI and PTOI margin decreased as higher sales were more than offset by a $112 million charge for transaction related costs and the fair value step-up
of inventories that were acquired and a $14 million restructuring charge. PTOI also included $49 million of amortization expense associated with the fair value
step-up of the acquired intangible assets.
Outlook For 2013, sales are expected to increase driven by strong demand for enablers, probiotics and cultures. Growth is expected in all regions,
particularly in Asia Pacific and Latin America, in the areas of nutrition solutions, improved health and food protection. Volume growth, mix enrichment, cost
synergies derived from integration and productivity gains, partially offset by raw material increases, are expected to contribute to earnings and PTOI margin
improvement.

(Dollars in millions)   
 $7,188 $7,794 $6,322
 $1,586 $1,923 $ 1,081
 22%25%17%
 

Price 4 % 26 %
Volume (12)% (3)%
Portfolio / Other — % — %
Total change (8)% 23 %
2012 versus 2011 Lower sales volume primarily reflects softness in titanium dioxide in all regions and weak demand in fluoropolymers. Higher local price
primarily reflects favorable pricing for titanium dioxide in the first half 2012, which more than offset unfavorable currency impact.
2012 PTOI and PTOI margin decreased as higher local prices were more than offset by lower volume, lower plant utilization and a $33 million asset
impairment charge noted above.
2011 versus 2010 Sales increased across all regions and market segments. The increase in sales reflects favorable pricing for titanium dioxide and
fluoropolymers, as well as pass-through pricing of higher raw material costs for fluorochemicals and industrial chemicals.
2011 PTOI and PTOI margin improved driven by the higher selling prices and fixed cost productivity.
Outlook Sales are expected to decrease in 2013 reflecting weaker pricing for titanium dioxide and fluoropolymers, partially offset by strong demand for
industrial chemicals. Segment earnings are also expected to decrease as productivity actions are more than offset by lower titanium dioxide prices. PTOI
margins are expected to decline about 7 to 9 percentage points.
25