Sep 2 2009
"With its modern titanium dioxide (TiO2) manufacturing base and streamlined global sales and service organization, DuPont Titanium Technologies (DTT) is poised to serve its customers well when the global recession subsides and growth resumes," said Rick Olson, vice president and general manager - DTT, during a DuPont Investors' Business Review Series teleconference.
Titanium dioxide is a fine white powder that can provide opacity, color, ultraviolet resistance and aesthetic benefits to products.
"The mission of DTT is to grow earnings and cash by optimizing its position as the global low-cost producer of titanium dioxide through accelerated growth in emerging markets and by developing and introducing innovative, new products," Rick said.
He said improvements in the first half of 2009 compared with the first half of 2008 provide evidence of the business' efforts to improve operating leverage, including:
- 28% reduction in working capital.
- 15% reduction in plant fixed costs.
- 17% reduction in SARM (sales and marketing, administrative costs, research and management expenses).
- 57% reduction in capital expenditure.
- Growth in emerging markets is expected to account for 70 - 80% of future growth in the TiO2 industry.
"Twenty years ago, 60% of our sales were in North America - primarily the United States," Rick said. "Today, we sell 75% of our product outside the United States, especially in Asia and Latin America."