DuPont (NYSE: DD), a science and technology company, reported second quarter 2008 sales increased 12% to $8.8 billion from $7.9 billion in the second quarter 2007. Net income for the second quarter 2008 was up 11% to $1.1 billion from $972 million in the second quarter 2007. Sales from agriculture and nutrition increased 23% due to strong global demand for food products. DuPont had revenues for the full year 2007 of $29.4 billion, up 7.3% from $27.4 billion for the full year 2006. Income before income taxes and minority interest for the full year 2007 was $3.7 billion, up 12% from $3.3 billion in 2006.
DuPont produces products and services for agriculture, nutrition, electronics, communications, safety and protection, home and construction, and transportation and apparel. DuPont offers products for crops worldwide such as corn, soybeans, fruits and vegetables, wheat, cotton, rice and numerous others.
DuPont recently received registration approvals from the U.S. Environmental Protection Agency and the Canada Pest Management Regulatory Agency for two new insecticides: DuPont Altacor and DuPont Coragen. The new innovative insecticides deliver fast-acting and long-lasting protection, helping growers produce high-quality, high-yielding fruit and vegetable crops.
DuPont (NYSE: DD) closed on August 5, 2008 at $43.93, down 16% from its fifty-two week high of $52.49. The Company's stock sells for 12 times trailing earnings with a 3.64% dividend yield. DuPont appears to be selling at a discount to its true value based on its current and future projected growth rates.
Global food demand is increasing at alarming rates as emerging markets economies worldwide continue to grow at robust paces. Agricultural companies, such as DuPont, provide solutions to the global "food crisis" and their revenues and earnings should grow in tandem with these emerging market economies and demand for more food. More of DuPont's revenues and earnings are being derived from its agricultural and food business segments as they position themselves for this strong future growth generator. DuPont is sowing the seeds for a bountiful harvest: investing in its stock may produce the same results for your portfolio.
References:
http://phx.corporate-ir.net/phoenix.zhtml?c=73320&p=irol-earnings
Company Second Quarter 2008 Earnings News Release
http://phx.corporate-ir.net/phoenix.zhtml?c=73320&p=irol-irhome
Company 2007 Annual 10K Report
http://www2.dupont.com/Production_Agriculture/en_US/news_events/cp_releases/2008-5-5.html
DuPont Altacor, Coragen Receive Key Registrations
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