In releasing its second quarter results, DuPont, Wilmington, DE, attributed declining profits and income to higher energy and ingredient costs. However, the company said that better local pricing and increased volumes offset a significant portion of increased raw material costs. "Essentially, we executed our growth strategy across all business segments," said CFO Jeffrey Keefer.
Quarterly profit declined 4% while net income dropped to $975 million compared to $1.02 billion during the same period last year.
DuPont said energy and ingredient costs increased by about $200 million in the quarter. Raw material costs are expected to remain higher in the second half of the year compared with 2005, but at a smaller increment than seen in the first quarter.
Company officials noted that a three-year program to reduce fixed costs by $1 billion remains on track, as does a multi-billion-dollar share repurchase program.