DuPont (DD) recently announced that it is emerging stronger from the global economic crisis after undertaking several measures last year to better position it for sustainable growth. 
 
DuPont maintained its R&D investment at $1.4 billion in 2009 during the economic crisis and introduced more than 1,400 new products, up 60% over 2008. The company delivered $1.1 billion in fixed cost productivity and $1 billion in working capital productivity. Free cash flow was $3.2 billion at the end of the year.
 
DuPont reaffirmed to deliver about 20% compound annual earnings growth for the 2010−2012 period. The company expects to generate about 10% top-line compound annual growth for the period. DuPont also plans to capture $1 billion in fixed cost productivity and $1 billion in working capital productivity gains during the 2010−2012 time frame. Additionally, the company expects earnings per share to be in the range of $2.15−$2.45 in 2010. 
 
The world’s second leading chemical company, DuPont serves markets including agriculture and food, building and construction, communications and transportation. A focus on emerging markets and strong performance in the Agriculture & Nutrition segment will likely generate about 10% growth in the top line during 2009−2012. DuPont expects earnings growth of 20% between 2009 and 2012.
 
However, weak North American automotive and construction markets have hurt its Coatings business. The U.S. housing market slump has impacted products such as Corian and Tyvek in the Coatings and Performance Material segment. Pharmaceutical royalties are also expected to decline after the expiry of patents in 2010. Hence, we have a Neutral rating on the stock.
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