DuPont profit tops estimates as solar helps electronics unit

MOSCOW (MRC) -- DuPont Co., the biggest U.S. chemical maker by market value, posted third-quarter profit that beat analysts’ estimates on higher sales volumes at units that make materials for solar panels and bullet-resistant vests, said Bloomberg.

Profit excluding some legal and pension costs was 45 cents a share, Wilmington, Delaware-based DuPont said today in a statement, topping the 41-cent average of 19 estimates compiled by Bloomberg. Net sales climbed 4.7% to USD7.74 billion, trailing the USD7.77 billion average estimate.

Sales of films and metal pastes used in solar panels drove a 67% gain in operating profit at the electronics unit. Earnings rose 16% at the safety and protection division, where U.S. military demand helped sales of Kevlar anti-ballistic fibers, DuPont said in a slide presentation.

Third-quarter net income rose to USD285 million, or 30 cents a share, from USD5 million, or break even, a year earlier. Items DuPont excluded from its adjusted per-share earnings include some employee-retirement expenses, costs to reimburse customers whose trees were damaged by Imprelis herbicide, and expenses to settle a titanium-dioxide antitrust claim.

DuPont Chairman and Chief Executive Officer Ellen Kullman is under pressure to improve the company’s performance from Trian Fund Management LP. The New York-based hedge fund, co-founded by activist Nelson Peltz, raised its stake to more than 21 million shares, or about 2.3%, and met top DuPont executives to discuss ways to boost shareholder value, people familiar with the matter said in August.

Installations by the solar industry may increase 10% this year, DuPont said in its presentation. Sales at the world’s biggest solar-energy companies probably rose 17% in the third quarter, according to the median of analysts’ estimates compiled by Bloomberg.

The agriculture unit posted the biggest sales gain, rising 15% on Latin American pesticide demand and seed prices, the company said. That helped narrow the loss in the seasonally weak third quarter when farmers in the U.S. and Europe haven’t begun to buy supplies for the next planting.

The agriculture, safety and electronics units are the kinds of higher-margin businesses that Kullman is focusing on while continuing to move away from commodity chemicals. She said in July that DuPont is considering a spinoff or sale of its performance chemicals unit, which generated USD7.2 billion of revenue last year, because of slow-growing, volatile earnings. The unit makes cyanide, Freon refrigerants, Teflon coating for nonstick pans, and titanium dioxide, known by its chemical formula TiO2 and used in paints and plastics.

The performance chemicals segment posted a 38% decline in third-quarter operating profit as prices fell. The business is starting to recover, with sales volumes rising 25 percent, the third consecutive quarterly improvement, DuPont said.

As MRC wrote previously, in late 2012 DuPont reported of investments that the company were making in all its divisions kept on delivering results which were offset by the weakness in titanium dioxide (TiO2) markets. "Excluding the performance chemicals unit, which includes TiO2, the company expects earnings growth of at least high-teens in 2013 versus 2012. Performance chemicals margins are expected to fall six to seven percentage points in 2013," DuPont said.

DuPont, founded in 1802 to make gunpowder, produces thousands of products from genetically modified seeds to plastics for auto parts.
MRC

MOSCOW (MRC) -- Novatek will supply fuel in its liquefied form to China National Petroleum Corp. for 15 years, according to a preliminary accord, said Hydracarbonprocessing.

Novatek will sell at least 3 MMmtpy of liquefied natural gas to CNPC on delivered ex-ship terms, with the price indexed to the Japanese Crude Cocktail, the Tarko-Sale, Novatek said in a statement. The agreement was signed during Prime Minister Dmitry Medvedev’s visit to Beijing. The period of supplies can be extended, according to the statement.

Novatek, which is leading the USD20 billion LNG project in the Russian Arctic region, is challenging Gazprom’s monopoly on supplies of super-chilled fuel abroad to benefit from the Asian nation’s rising energy demand. Russia plans to allow Novatek, as well as oil producer Rosneft, to export LNG from next year.

CNPC agreed in June to buy a 20 % stake in the Yamal LNG project, joining Novatek and partner Total. The deal is expected to be completed by December 1.

Yamal LNG at full capacity will produce 16.5 MMtpy of LNG starting from the end of 2016, according to Novatek.
MRC

MOSCOW (MRC) -- Eastman Chemical Company, in conjunction with Johnson Matthey Davy Technologies Limited (JM Davy), has developed advanced proprietary technology for the production of ethylene glycol from synthesis gas-based feed stocks, as per Plastemart.

Ethylene glycol, commonly referred to as mono ethylene glycol (MEG), is a key industrial chemical for PET production and is also a building block in the production of polyesters for fiber and packaging applications.

This new technology enables the production of MEG from a variety of raw materials, including coal, natural gas, or biomass and is based on new, proprietary catalysts and process design developed by Eastman and JM Davy.

Unlike other recent syngas based processes, this new technology does not go through oxalate intermediates. Extensive pilot plant demonstration of the new process is nearing completion and dialogue is underway for the first demonstration.

"This world-class technology is well positioned to enable global growth for ethylene glycol, a key industrial product," said Dr. Gregory W. Nelson, Eastman's senior vice president and chief technology officer. "The combined expertise of Eastman and JM Davy in synthesis gas chemistry enabled our best process and catalyst scientists to create a superior technology and bring it to market for licensing."

As MRC reported earlier, Eastman Chemical is expanding capacity of its Eastman 168 non-phthalate plasticizers at its manufacturing facility in Texas City, Texas, USA. The expansion at the site will increase the overall capacity of Eastman 168 by approximately 15% and is expected to be operational by mid-2014. Non-phthalate plasticizers are broadly used in products such as toys, childcare items, food contact materials and medical devices, and are also used to provide flexibility to PVC in a wide variety of applications.

Eastman (headquartered in Kingsport, Tennessee, USA) is a global specialty chemical company that produces a broad range of products found in items people use every day. With a portfolio of specialty businesses, Eastman works with customers to deliver innovative products and solutions while maintaining a commitment to safety and sustainability. Its market-driven approaches take advantage of world-class technology platforms and leading positions in attractive end-markets such as transportation, building and construction, and consumables.
MRC

MOSCOW (MRC) -- Imports of polycarbonate (PC) to Ukraine increased by 11% in January-September 2013 compared to the same period last year and totalled about 3,000 tonnes, according to MRC DataScope report.

Ukraine's PC imports from the Netherlands, Germany, Belgium, South Korea and China have been steadily increasing over the reported period. The biggest increase in PC imports over the three quarters occurred for the supplies from China, which grew half as much compared to the last year's level and reached 116 tonnes.

Sabic and Bayer, with their shares of 33% and 30% from the total, were the leaders in PC imports to the domestic market of Ukraine over January-September 2013.

Injection moulding PC grades were the most popular grades among Ukrainian producers of automotive components and electrical appliances.
Since the beginning of this year the share of injection moulding PC-chips imports in the total external PC supplies to Ukraine was 79%.


MRC

MOSCOW (MRC) -- August imports of polyethylene (PE) and polypropylene (PP) fell by 13% from July. PP accounted for the main decrease in shipments, reported MRC analysts.

The August PE and PP imports to Belarus dropped to 14,900 tonnes from 17,100 tonnes in July. PP accounted for the largest decline in supplies on higher prices in Europe and limited export quotas from Russian producers.

High density polyethylene (HDPE) is the only polyolefin, imports of which to Belarus rose in August. The overall imports grew up to 5,400 tonnes from 5,300 tonnes in July. The key HDPE suppliers are still Russian producers with a share of about 56%.

The overall HDPE imports to Belarus increased by a quarter to 42,200 tonnes in the first eight months of 2013. Imports of low density polyethylene (LDPE) and linear low density polyethylene (LLDPE) dropped by 21% in August from July and totalled about 3,000 tonnes. Saudi Arabian PE accounted for about half of the total imports.

The overall imports of LDPE and LLDPE fell to 29,400 tonnes in January-August 2013 from 38,700 tonnes a year earlier.

Imports of homopolymer of propylene (homopolymer PP) and copolymers of propylene decreased by 12% and 31%, respectively, from July and amounted to 4,700 tonnes and 1,800 tonnes, respectively. The main reasons for the reduction are limited export quotas from Russian producers (for homopolymer PP) and higher prices in Europe (for copolymers of propylene).

The overall import of homopolymer PP and copolymers of propylene to Belarus in the first eight months of the year totalled 39,100 tonnes and 14,300 tonnes, respectively, while in the same period of 2012 it was 40,700 tonnes and 14,400 tonnes, respectively.
MRC