DuPont's Medical Packaging Transition Project

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Aug 11, 2013
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DuPont (DD, Financial) is a global science and innovation company, operating in more than 90 countries with 2011 sales net sales of $38 billion. DuPont Chairman and CEO Ellen Kullman told leaders at the February 2013 Advanced Research Projects Agency-Energy (ARPA-E) Energy Innovation Summit outlined how DuPont has developed and brought to scale cost-effective sustainable solar energy with its expertise in material science. DuPont declared a third quarter common stock dividend of 45 per share payable on Sep. 12, 2013, to stockholders Aug. 15, 2013.


Year over year, E.I. du Pont de Nemours and Company has seen their bottom line shrink from $3.5B USD to $2.8B USD despite an increase in revenues from $33.7B USD to $34.8B USD. An increase in the percentage of sales devoted to SGA costs from 9.97% to 10.25% was a key component in the falling bottom line in the face of rising revenues.


DuPont Medical Packaging also has plans to modernize manufacturing technology of its Tyvek styles. The transition will involve Tyvek 1073B and Tyvek 1059B to its flash-spinning technology. Over the last decade, pharmaceutical companies have been aggregating years of research and development data into medical databases, while payers and providers have digitized their patient records.


In 2011, more than $10 billion of DuPont’s revenues came from products that were introduced within the past 4 years. Through science that meets global needs, we expect long term underlying earnings per share growth of about 12 % compounded annually. For 2011, sales and underlying earnings growth of 20% each as well as excellent cash flow were generated. In the same period, $1.5 billion in dividends were paid.


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Key Stock Data


Dividend Yield: 3.49%

P/E Ratio: 16.54 Trailing 12 months

Market Cap: $44.85 Billion

Shares Outstanding: 919.07 Million

Public Float: 917.75 Million


“Our goal is to eliminate the need for regulatory submissions associated with the transition and to mitigate or eliminate such costs,” explained Mike Scholla, global regulatory director, DuPont Medical and Pharmaceutical Protection. “FDA has responded to our plan in writing saying that it would not normally require submission of amended 510(k)s or PMAs."




Du Point will invest in its major R&D centers around the world, including locations in the U.S., Switzerland, India and China. DuPont’s growth strategy includes three key focus areas. The first is building a world-leading position across agriculture and nutrition, industrial biotechnology and advanced materials. The second is driving innovation, productivity and growth in developing markets around three key megatrends: providing for the food, energy and protection needs of a growing population. The third is differentiated portfolio management - disciplined allocation of our resources to focus on high-growth businesses.


Investors can expect attractive long-term growth from innovation driven by megatrends. DuPont will continue to maintain our culture of accountability and financial discipline. DuPont is investing $30 million in the overall transition. For investors, DuPont offers a lot of opportunities and potential.