E. I. du Pont de Nemours (aka DuPont) puts chemicals to work. A top US chemical maker (along with
), the company consists of 10 businesses that are divided into six segments, each of which serves a diverse set of markets. Using its expertise in science-based development, it offers products, materials, and services that are applied in everything from agriculture, apparel, and construction, to electronics, nutrition, and safety. DuPont operates worldwide with most of its sales coming from outside of the US. In late 2015 Dupont agreed to merge with Dow to create a group valued at $130 billion.
Change in Company Type
In July 2016, DuPont and
shareholders agreed to complete the merger of equals transaction. Following the consummation of the merger, the combined company will pursue the separation of the combined company's Agriculture, Material Science, and Specialty Products businesses into three independent, publicly traded companies.
The company consists of 10 businesses and six reportable segments: Agriculture, Electronics & Communications, Industrial Biosciences, Nutrition & Health, Performance Materials and Safety & Protection. DuPont also has businesses not included in the reportable segments, such as pre-commercial programs, nonaligned businesses, and pharmaceuticals in Other.
The company's largest segment, Agriculture (39% of 2015 sales), consists of the
Pioneer Hi-Bred International
and DuPont Crop Protection businesses, offering a slew of products and services aimed at improving crop yields and productivity. Products include Pioneer brand seeds, as well as other insecticide, fungicide, and herbicide brands.
DuPont Performance Materials (Performance Materials, 21%) includes DuPont Performance Polymers (Performance Polymers) and DuPont Packaging & Industrial Polymers (Packaging & Industrial Polymers) and provides its customers with innovative polymer science solutions and expert application development assistance.
Safety & Protection businesses (14%), include DuPont Protection Technologies (Protection Technologies), DuPont Building Innovations (Building Innovations), and DuPont Sustainable Solutions (Sustainable Solutions).
Nutrition & Health (13%) offers a wide range of sustainable, bio-based ingredients and advanced molecular diagnostic solutions for specialty food ingredients, food nutrition, health and safety products.
Electronics & Communications (8%) is a supplier of differentiated materials and systems for photovoltaics, consumer electronics, displays and advanced printing.
Industrial Biosciences (5%) develops and manufactures a broad portfolio of bio-based products. The segment's enzymes add value and functionality to processes and products across a broad range of markets such as animal nutrition, detergents, food manufacturing, ethanol production and industrial applications.
In July 2015 the company discontinued its Performance Chemicals segment.
DuPont has operations in more than 90 countries worldwide. The majority are located in Europe, while other operations can be found in North America, Latin America, the Middle East, Africa, and Asia/Pacific. The US and Canada accounts for more than 40% of the company's revenue.
Sales and Marketing
The company serves companies in a range of industries, including Agriculture, Automotive, Building and Construction, Chemicals, Electronics, Energy, Food and Beverage, Government and Public Sector, Health Care and Medical, Marine, Mining, Packaging and Printing, Plastics, and Safety and Protection.
Pioneer Hi-Bred markets and sells seed products under the Pioneer brand and additional brand names. In the corn and soybean markets of the US Corn Belt, Pioneer brand products are sold through a specialized force of independent sales representatives. Outside of North America, Pioneer's products are marketed through a network of subsidiaries, joint ventures, and independent producer-distributors.
DuPont Crop Protection products are marketed and sold to growers and other end users through a network of wholesale distributors and crop input retailers. Sales for the business' insect control portfolio is led by DuPontTM Rynaxypyr insecticide, a product that is used across a broad range of core agricultural crops.
Nutrition & Health products are marketed and sold under a variety of brand names.
In fiscal 2015, DuPont's net sales decreased by 12% (to $25.1 billion) compared to fiscal 2014 due to lower sales from the agriculture segment.
Agriculture segment sales dropped as the result of the negative impact of currency and lower seed and crop protection volumes, primarily in Brazil and North America, partly offset by higher local corn seed prices.
Net income decreased by 46% (to $1.95 billion) due to lower sales.
In fiscal 2015 net cash provided by the operating activities declined by 38% compared to fiscal 2014, to $2.2 billion.
DuPont's general strategy for growth is to use its expertise in science and technology to launch products that address global needs for food, and cleaner energy (mainly reducing dependence on fossil fuels).
The company is looking to build and leverage leading positions in three highly attractive strategic focus areas -- Agriculture & Nutrition, BIO-Based Industrials, and Advance Materials -- where the company has robust opportunities and strong, well established competitive advantages.
DuPont's near term focus is to deliver earnings growth while positioning the businesses to compete successfully over the long term; continue to improve capital allocation and working capital performance; and complete the proposed merger of equals with Dow.
As part of its portfolio reorganization, in 2015 DuPont spun off its Performance Chemicals unit as the
In 2014 DuPont Protection Technologies announced the new DuPont Kevlar brand platform, Dare Bigger, and a sponsorship of ESPN X Games through 2015.
Mergers and Acquisitions
In order to gain approval for the Dow Chemical deal from European regulators, DuPont traded businesses with FMC. DuPont sold part of its crop protection business to FMC and FMC sold its health and nutrition business to DuPont. DuPont is to gain about $1.6 billion on the deal because of the difference in the valuations of the assets. FMC's Health & Nutrition business generated more than $700 million in revenue in 2016 from food ingredients and pharmaceuticals. DuPont expects that the additional products will complement its nutrition and health business.