E.I. du Pont de Nemours and Co. Reports Operating Results (10-Q)
E I Du Pont De Nemours And Co has a market cap of $45.79 billion; its shares were traded at around $47.705 with a P/E ratio of 12.2 and P/S ratio of 1.2. The dividend yield of E I Du Pont De Nemours And Co stocks is 3.5%. E I Du Pont De Nemours And Co had an annual average earning growth of 5.1% over the past 10 years. GuruFocus rated E I Du Pont De Nemours And Co the business predictability rank of 2-star.
Highlight of Business Operations:Sales of $11.0 billion for the second quarter 2012 were up 7 percent including 6 percent higher local prices and a 5 percent net sales increase from portfolio changes. Volume was 1 percent lower compared to the same period last year, but increased sequentially from the first quarter to the seasonally stronger second quarter. Sales in developing markets1 grew 11 percent, led by growth in Agriculture and the benefit of prior-year acquisitions in Nutrition & Health and Industrial Biosciences. Year-to-date sales of $22.2 billion were up $1.9 billion or 10 percent.
Net sales for the six months ended June 30, 2012 were $22.2 billion versus $20.3 billion in the prior year, an increase of 10 percent, reflecting a 6 percent net increase from portfolio changes, principally the Danisco acquisition, and an 8 percent increase in local prices, partly offset by 2 percent lower volume and a 2 percent sales reduction from currency impact. The decline in total company volume reflects higher Agriculture global volume more than offset by lower volume for the other segments combined, primarily related to lower demand in the EMEA and Asia Pacific regions. Sales in developing markets totaling $6.8 billion improved 13 percent from 2011 including the benefit from portfolio changes. The percentage of total company sales in these markets increased to 31 percent from 30 percent in the prior year.
COGS for the six months ended June 30, 2012 was $15.3 billion, an increase of 9 percent versus $14.0 billion in the prior year. COGS as a percent of net sales was unchanged at 69 percent as a 4 percent increase in raw material, energy and freight costs, and the charges described above, were offset by higher local selling prices and productivity improvements.
SG&A totaled $1.2 billion for the second quarter 2012 versus $1.1 billion in the prior year. Year-to-date SG&A totaled $2.4 billion versus $2.2 billion in 2011. The increase for the three and six months ended June 30, 2012 was due to additional selling expense of acquired companies and increased global commissions and selling and marketing investments primarily in the Agriculture segment. SG&A was approximately 11 percent of net sales for the three and six months ended June 30, 2012 and 2011.
R&D totaled $528 million and $462 million for the second quarter 2012 and 2011, respectively. For the six months ended June 30, 2012, R&D was $1.0 billion versus $861 million last year. The increase for the three and six months ended June 30, 2012 in R&D was primarily due to the addition of R&D from acquired companies and continued growth investments in the Agriculture segment, primarily related to spending for development of new products. R&D was approximately 5 percent of net sales for the second quarter 2012 and 2011, respectively. R&D was approximately 5 percent and 4 percent of net sales for the six months ended June 30, 2012 and 2011, respectively.
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