Pretending DuPont Is A "Science-Powered" Tech Outfit & Elite Bio-Boutique
Good Morning, Bonjour, Guten Tag,
Many of you will remember how Ellen J. Kullman, DuPont Chieftess appears to bristle when JP Morgan's Jeff Zekauskas refers to "chemical companies" during the Q1 2012 Conference Call. Ms.
Kullman sniffs and retorts,
"Well, actually, I'd like to start first to say we're not a chemical company,.."
But the fact is well over half of DuPont's sales in Q1 come from industrial chemicals and chemical-based specialty and commodity materials. If DuPont Senior Management has such identity confusion, disdaining chemicals, it is not surprising that DuPont's much larger diverse competitors, BASF and Dow Chemical, for instance, and smaller fast-moving outfits like East Chemical and PPG have out-played the struggling Delaware-based chemical conglomerate with lines of conventional Pioneer seeds and Danisco food additives and enzymes.
Moreover, Ms. Kullman obviously feels more comfortable in the kitchen cooking with Pioneer corn and beans and her food additives and enzymes, than she does in a chemical plant or laboratory. Her anti-chemical mindset helped drive the dumping of DuPont car paints and solvents last week on Aug. 31, 2012. Ms. Kullman effectively lopped off over 10% of her yearly DuPont revenue of $40 billion and a major cash flow contribution to her obese overhead.
We can certainly appreciate Ms. Kullman's sensitivity to profiling and comparisons to her rivals. Her competitors over the past decade, to say bluntly, have left the much shrunken DuPont pretty much in the dust. Syngenta is FIRST in global agro-chemicals; Monsanto, in seeds; BASF, in chemicals. While corporate rivals grow robustly, DuPont continues to shrivel.
Merely the perspective of one individual retail investor and long-time student of the declining DuPont.