S T Dupont Ord Share Price (0E6R)

Positive Points: The results materialised at the upper end of analyst estimates. For the fourth quarter, volumes rose by 3%, although were offset by a 2% negative currency impact and a 1% reduction from business portfolio changes. The company previously commenced a restructuring plan to increase productivity, enhance competitiveness and accelerate growth. The plan will deliver pre-tax cost savings of about $450 million ($300 million in 2013) by eliminating corporate costs supporting Performance Coatings and taking additional cost-cutting actions to improve competitiveness. The restructuring plan includes eliminating about 1,500 positions globally. Agriculture sales of $1.5 billion were up 18% on 11% higher volumes. Nutrition & Health sales of $853 million were up 3% on higher volume, reflecting improved demand for specialty food ingredients. The group enjoys significant diversity in both product type and geographical location. The company continues to be viewed as something of a global economic barometer. The quarterly dividend payment announced is the 434th consecutive quarterly dividend since the company's first dividend in the fourth quarter of 1904.

Negative Points: The Chief Executive noted that "weakness in markets served by Performance Chemicals and Electronics & Communications provided significant challenges in 2012." Weaker demand in both the US and Europe for products such as paint pigments and solar panels impacted. Overall group volumes during the full year 2012 declined by 2%. Accompanying management outlook comments noted that "first half 2013 operating earnings are expected to decline modestly on a year-over-year basis." Volatile energy, currency and commodity prices continue to provide uncertainty moving forward. The dividend payment has remained unchanged since 2008.

Financial Highlights: Earnings Per Share (EPS) from continuing operations, excluding significant items, came in at 11 US cents versus prior year earnings of 26 US cents. Sales of $7.3 billion equalled the prior year. For the full year, EPS from continuing operations, excluding significant items, of $3.33 was reported, down from $3.55 in 2011. Sales rose by 3%.

Fourth quarter results: The results materialised at the upper end of analyst forecasts - the share price gained in opening trade. Improved demand for both automotive plastics and packaging materials helped its Performance Materials division counterbalance difficulties elsewhere. Increased demand underwrote a 3% improvement in volumes for the Performance Materials business, with management highlighting "stable packaging markets and strong demand in the North American automotive market." Less favourably, at its Performance Chemicals business, sales fell by 15% on 8% lower volumes and 7% lower prices, impacted by reduced paint pigment sales, whilst the group's Electronics & Communications also dragged on overall performance. In all, management noted that "DuPont stands stronger today than it did a year ago." Sales for the full year rose by 3% to $34.8 billion, with a 6% increase in developing markets.