Wilmington, Delaware
May 29, 2009
CEO Ellen Kullman updates
investors on growth opportunities in increasing food
productivity,decreasing dependence on fossil fuels, protecting
lives, growing in emerging markets
DuPont is
well-positioned for growth opportunities with innovations that
are addressing major global market trends, said DuPont CEO Ellen
J. Kullman at an investors’ conference here today. Kullman said
the company’s research and development efforts are focused on
global needs for increasing food productivity, decreasing
dependence on fossil fuels, protecting lives and growing in
emerging markets.
“DuPont is a market-driven science company,” Kullman said at the
Sanford Bernstein Strategic Decisions Conference. “That simple
statement describes us whether we’re at the peak of an economic
cycle or experiencing a global recession -- innovation is a
critical lever at all times for DuPont. Our innovation
objectives are focused on key global market trends. These trends
provide a compass to guide our research and development on new
products, creating opportunities for innovation by DuPont.”
Kullman said 77 percent of DuPont’s $1.4 billion R&D budget is
directed at three global “megatrends” of increasing food
productivity, decreasing dependence on fossil fuels and
protecting lives. With greater emphasis on the execution of its
product development efforts, DuPont delivered more than $10
billion in sales from new products that are less than five years
old in 2008. In first quarter 2009, DuPont commercialized more
than 500 new products to the market – nearly double compared to
first quarter 2008.
“Innovation has the potential to better feed the world, address
global energy challenges and provide safer and more secure lives
for people everywhere. DuPont is pursuing innovations that meet
customer and market needs, while providing value for our
shareholders and society,” Kullman added, noting that global
population growth is the common denominator driving demand.
According to the United Nations, the world’s human population
has grown from about 2.5 billion in the mid-20th century to more
than 6.5 billion today, with projections rising to an estimated
9 billion people by mid-21st century.
Increasing Food Productivity. To
accommodate the rising demand for food and dietary protein by
the world’s population between now and 2025, global food
production will need to double on virtually the same amount of
land currently in production, Kullman said.
DuPont, one of the largest producers of soybean and corn seed in
the world, is using biotechnology to develop insect-resistant
varieties and hybrids to improve productivity, quality and yield
and to accelerate breeding and rate of genetic gain. “We expect
at least $2 billion in incremental sales to be generated over
the next five years, with more to come after that,” Kullman
said.
Decreasing Dependence on Fossil Fuels. As economies
modernize in emerging markets, Kullman said DuPont is
anticipating increased demand for renewable energy sources by
developing products and technologies for photovoltaics – with
sales expected over $1 billion by 2012 -- and advanced biofuels,
like biobutanol and cellulosic ethanol. DuPont is also focused
on developing more energy-efficient products, including a new
generation of DuPont™ Tyvek® materials with improved performance
in weatherization and energy efficiency.
Protecting Lives. “The company’s safety expertise and
highly differentiated product offerings position it well to
service the basic need for people to feel safe and secure at
work and at home,” Kullman said. “We’re working on
next-generation DuPont™ Kevlar® and Nomex® products for
military, life protection and industrial applications, and we’re
coupling the product innovations with a very strong brand
franchise. In addition, we are expanding the addressable market
to tires, transformers, oil and gas industry needs, and other
areas.”
Growing in Emerging Markets. Kullman said DuPont’s sales
in emerging markets grew 13 percent to $8.8 billion in 2008.
“Innovation plays a key role in our ability to penetrate and
grow in emerging markets. As we learn more about the local
market, we use our technical service capability to develop
products that are tailored to the unique demands of the specific
market,” Kullman said.
To review Kullman’s entire presentation at the Sanford Bernstein
Strategic Decisions Conference, go to the DuPont Investors
Center at www.dupont.com.
DuPont is a science-based products and services company.
Founded in 1802, DuPont puts science to work by creating
sustainable solutions essential to a better, safer, healthier
life for people everywhere. Operating in more than 70 countries,
DuPont offers a wide range of innovative products and services
for markets including agriculture and food; building and
construction; communications; and transportation. |
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