) is a diversified global chemical company, which supplies
agricultural products (such as seeds and pesticides),
high-performance materials, automotive coatings, electronic
materials and key industrial chemicals to industries and consumers
globally. DuPont competes with other major chemical &
agricultural companies such as Dow Chemicals (
), 3M (
), Monsanto (
), Syngenta and BASF.
Our current price estimate for DuPont stands at
. The firm derived a bulk of its value from the performance and
safety materials division constituting 40% of the our price
estimate, which we discuss below.
40% of DuPont's in Performance and Safety Materials
Performance and Safety Materials
divisions supplies high-performance chemicals/materials that cater
to a wide range of industries.
Key products include:
: Delivers a broad range of polymer-based high performance
materials, including elastomers and engineering polymers.
Packaging and Industrial Polymers
: Includes resins, films, sealants & adhesives.
: Includes body armor, protective gear for the military and
: Includes DuPont's Titanium Technologies, fluorochemicals and
other specialty chemicals such as refrigerants, lubricants and
Key Drivers: Growing Division Market Share and a Large
The performance and safety materials division falls under the
global specialty chemicals market (excluding
. Due to the vast array of products and their applications, the
global demand (in real US dollar terms) for specialty chemicals was
worth over $445 billion in 2010, and we expect it to reach roughly
$570 billion by the end of the Trefis forecast period.
Revenues from this division account for almost 50% of the
company's total revenues (about $15 billion in 2010) and led to a
3.5% market share in 2010. With global macro-economic conditions
recovering from 2008-09, we expect additional capacity expansions
by DuPont in high-growth markets such as China. Additional factors
such as brand recognition of DuPont's key products (e.g. Teflon,
Zytel, Kevlar) should propel market share growth in future years,
which is estimated to reach close to 4% by the end of the Trefis
See our full analysis of DuPont's price