How Does DuPont Make Money?
DuPont (NYSE:DD), whose stock is currently trading at around $72, generates its revenue primarily from its Nutrition and Biosciences segment, which is projected to account for 30.3% of total revenues in FY 2019, while the Transportation & Advance Polymers segment is expected to be the 2nd highest contributor to the Top line at 26.1%. In this note we discuss the revenue segments of DuPont, their historical performance, and expected Total Revenue for FY 2019. You can look at our interactive dashboard analysis ~ DuPont’s Revenues: How does DuPont make money? ~ for more details. In addition, here is more chemical companies data.
Note that the total revenue figures in this note are excluding the Corteva and Dow businesses, which were split off in Q2 2019.
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DuPont Business Model:
What Does DuPont offer?
- DuPont generates revenues from various businesses, including Nutrition & Biosciences, which offers soy-based food ingredients and food processing chemicals, while Industrial Biosciences primarily focuses on new product development to assess and build commercial viability of other businesses through biotechnology and engineering solutions including enzymes, biomaterials, biocides, and antimicrobial solutions, and process technology.
- Among other businesses, Safety and Construction includes supply of safety and protection materials globally, while the Electronic & Imaging business offers high-performance materials designed for specific use in the electronic industry.
- DuPont’s products have a vast array of applications and are used by a wide range of industries which include pharmaceuticals, food, construction, transportation, and consumer electronics.
Operating Segments:
- Transportation and Advanced Polymers segment provides material solutions with high-performance engineering resins, adhesives, lubricants, and parts for the transportation, electronics, and medical industries.
- Electronic & Imaging business offers high-performance materials designed for specific use in the electronic industry. Electronic materials are primarily used in the production of electronic displays, fabrication of printed circuit boards, and integrated metallization processes.
- Nutrition & Biosciences products includes soy-based food ingredients and food processing chemicals. The company sells probiotics and cultures, specialty proteins, systems and texturants, and excipients.
- Industrial Biosciences primarily focuses on new product development to assess and build commercial viability of other businesses through biotechnology and engineering solutions including enzymes, biomaterials, biocides, and antimicrobial solutions, and process technology.
- Safety and Construction primarily includes the supply of safety and protection materials globally.
What Are The Alternatives?
Major competitors are companies like: BASF, Bayer, ChemChina, and other similar companies
DuPont’s Total Revenue (excl. Corteva & Dow) has grown by 15.7% between 2016 and 2018, but is expected to fall by 6.5% in 2019:
- DuPont’s total revenues grew from $19.6 billion in 2016 to $22.7 billion in 2018. Trefis estimates a fall in 2019 by 6.5% to $21.2 billion.
- Nutrition & Biosciences segment’s revenues grew from $5.8 billion in 2016 to $6.8 billion in 2018. Trefis estimates a fall in 2019 by 6% to $6.4 billion.
- Transportation & Advance Polymer segment’s revenues grew from $4.5 billion in 2016 to $5.6 billion in 2018. Trefis estimates a fall in 2019 by 2% to $5.5 billion.
- Safety & Construction segment’s revenues grew from $5 billion in 2016 to $5.5 billion in 2018. Trefis estimates a fall in 2019 by 2% to $5.4 billion.
- Electronic & Imaging segment’s revenues grew from $4.3 billion in 2016 to $4.7 billion in 2018. Trefis estimates a fall in 2019 by 18% to $3.9 billion.
What’s behind Trefis? See How It’s Powering New Collaboration and What-Ifs
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