E. I. du Pont de Nemours (also known simply as DuPont) wants to coat your car, feed your crops, and decrease your dependence on fossil fuels. A top US chemical maker (along with Dow and ExxonMobil Chemicals), the company consists of 13 businesses that are divided into eight 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. To raise cash, in 2013 sold its Performance Coatings business.
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. In 2013 the US accounted for 40% of the company's revenues.
DuPont's eight business segments are Agriculture, Electronics & Communications, Industrial Biosciences, Nutrition and Health, Performance Chemicals, Performance Materials (which it plans to sell), Safety & Protection, and Pharmaceuticals. The company's largest segment, Agriculture, 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.
Performance Chemicals (fluorine products and white pigments) and Performance Materials (a wide range of polymers) round out DuPont's top three segments, which all together generate about two-thirds of the company's sales.
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The company serves companies in a rage of industries, including Agriculture, Automotive, Building and Construction, Chemicals, Electronics, Energy, Food and Beverage, Government and Public Sector, and Health Care and Medical.
In 2013 DuPont's revenues grew by 2% due to a 5% increase in worldwide sales volume with growth in all segments. Agriculture segment sales increased by 13% due to higher global seed prices and volumes, increased global insecticide and fungicide volumes, and the benefit of increased ownership in Pannar Seed (Pty) Ltd. These gains were slightly offset by negative currency transactions. Growth in seeds reflected strong corn sales in North America and Brazil; higher insecticide volumes were driven by demand for Rynaxypyr, particularly in Latin America; while fungicide volume increases were led by demand for picoxytstrobin in North America and Latin America. Industrial Biosciences revenues increased by 4%; Safety & Protection,2%; Nutrition & Health,1%; and Performance Materials segments, 1%.
After experiencing net income drop in 2012 due to lower revenues and increased operating cost, in 2013 the company’s net income increased by 76% due to higher revenues and income from discontinued operations.
In 2013 the DuPont's operating cash inflow decreased to $3.18 billion (from $4.85 billion in 2012 was due a major change in working capital as a result of cash used for accrued interest and income taxes.
DuPont's general strategy for growth is to use its expertise in science and technology to launch products that will address global needs for food, cleaner energy (mainly reducing dependence on fossil fuels), and keeping people and the environment safe.
The company is undergoing a shift from being a chemical maker known for paints, plastics, and industrial chemicals to a company that is trying to grow in certain high-growth, high-margin markets, such as agriculture and nutrition, advanced materials, and biotechnology.
DuPont has a five-year plan with annual growth targets of 7% for sales and 12% for earnings through 2015. The company also plans to get 40% of its sales by 2015 from developing markets, which include China, India, and countries in Latin America, Eastern and Central Europe, the Middle East, Africa, and Southeast Asia.
In 2014 DuPont Protection Technologies today announced the new DuPont Kevlar brand platform, Dare Bigger, and a sponsorship of ESPN X Games through 2015.
In 2013, the company entered into a definitive agreement to sell Glass Laminating Solutions/Vinyls, a part of Packaging & Industrial Polymers, to Kuraray for $543 million, plus the value of the inventories.
To raise cash to pay down debt and focus on its core businesses, in 2013 DuPont sold one of its larger units, Performance Coatings, to The Carlyle Group for $4.9 billion.
In a further portfolio reorganization, that year DuPont also announced plans to spin off its Performance Chemicals unit in 2015.