DuPont (DD) Details Plans for Growth in '09-'12; Guides FY10 Inline

November 3, 2009 9:12 AM EST

During the company's Investor Day, DuPont (NYSE: DD) CEO Ellen Kullman and the company's leadership team detailed how DuPont expects to build on its core competitive advantage of market-driven scientific innovation and its strong position in targeted global growth markets to deliver 20% compound annual earnings growth for the 2009-2012 period.

"Our focus is on delivering superior growth for our shareholders through customer-driven and science-based solutions, carefully prioritized investments, industry-leading productivity, and strict accountability," Kullman said. "By acting on our commitments to shareholders over the past 12 months, DuPont is meeting the economic recovery as a stronger, faster and more agile global competitor. We are well-positioned to outperform the rate at which markets recover and improve."

By executing on its priorities, DuPont expects to generate about 10% top-line compound annual growth for the 2009-2012 period. The company also plans to capture $1 billion in fixed cost productivity and $1 billion in working capital productivity gains during the 2010-2012 timeframe.

Sees FY09 EPS of $1.95-$2.05, or $1.80-$1.90 on a reported basis, which compares to the Street estimate of $2.01. For FY10, sees EPS rising to $2.10-$2.40, versus the consensus estimate of $2.24.

The company plans to capitalize on global growth opportunities by sharply focusing its innovation pipelines on four megatrends to: meet the increasing demand for food productivity; protect people and the environment; decrease dependence on fossil fuels; and capitalize on the growth of emerging markets where about one-third of DuPont's sales are currently generated.

In addition, DuPont is strengthening its alignment with customers and markets; driving disciplined scientific innovation directly from market needs; increasing transparency and accountability for results with a simplified organization; and continuing its intense focus on productivity.

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