First quarter 2011 consolidated net sales of $10 billion were 18 percent higher than the prior year, reflecting nine percent higher volume, eight percent higher local prices and a one percent net increase from portfolio changes.
First quarter 2011 net income attributable to DuPont increased 27 percent to $1.431 billion versus $1.129 billion in 2010. The increase reflects higher sales volume and selling prices, partly offset by a $171 million decline in Pharmaceuticals pre-tax income due to patent expirations. Fixed costs improved to 35 percent of sales from 37 percent in the first quarter 2010.
Segment pre-tax operating income (PTOI) for first quarter 2011 was $2.125 million compared to first quarter 2010 PTOI of $1.803 million. The increase in PTOI principally reflects earnings improvements in all segments, partly offset by lower Pharmaceuticals income.
DuPont’s Performance Chemicals sales of $1.8 billion were up 27 percent, with 21 percent higher selling prices and six percent higher volume. Sales increased across all regions, especially in the U.S. and Asia Pacific. Higher selling prices stemmed from strong global demand for titanium dioxide, refrigerants and fluoroproducts. PTOI was $394 million, increasing $204 million due to higher selling prices and volume.
DuPont’s Performance Coatings sales of $1 billion were up 10 percent, reflecting six percent higher selling prices and four percent higher volume. Global automotive markets improved primarily due to a significant increase in North American auto builds. Strong demand continued in industrial coatings, particularly in the North American heavy-duty truck market. PTOI was $65 million, an improvement of $20 million versus prior year on strong sales and operating leverage.