Bloomberg News

Dupont Expects Margins to Increase in Former Danisco Units

December 12, 2011

(Updates with unit results starting in second paragraph.)

Dec. 12 (Bloomberg) -- DuPont Co., the chemical maker that acquired Danisco A/S this year, said it expects profit margins in the businesses it purchased to increase as it achieves $130 million of cost savings early and new products are introduced.

Pretax operating margins in the Nutrition and Health unit may rise to between 12 percent and 14 percent in the “long term,” from 7 percent in 2011, Craig Binetti, the president of the business, said today at an investor presentation at DuPont headquarters in Wilmington, Delaware.

Margins will be boosted through achieving synergies by 2012, a year earlier than forecast, the company said. Sales in Nutrition and Health may increase by between 7 percent and 9 percent a year from $2.5 billion this year.

Profit margins in Industrial Biosciences are forecast to expand to between 15 percent and 17 percent, from 10 percent in 2011, as the company begins licensing technology for making butanol and ethanol from plants, said Jim Collins, the president of the unit. Sales may rise between 10 percent and 12 percent a year, from about $700 million currently.

DuPont will review its other businesses when the investor presentation continues tomorrow.

--Editors: Aaron Sheldrick, Drew Gibson

To contact the reporter on this story: Jack Kaskey in Houston at jkaskey@bloomberg.net

To contact the editor responsible for this story: Aaron Sheldrick at asheldrick@bloomberg.net


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