2. To All DuPont Stakeholders
The mission of DuPont is sustainable growth — creating value Our financial performance in 2005 was multifunctional teams to serve 38 such
disappointing, and we did not achieve our customers, and we are expanding on that base.
for our shareholders and society while reducing the environmental earnings improvement goal. This should not
We demonstrated confidence in our future
take away from the hard work of the people
footprint throughout the value chains in which we operate. This when we announced a set of actions in
of DuPont who, confronted by extraordinary
the fourth quarter designed to increase
mission was never more relevant than in 2005, and throughout challenges during the year, demonstrated
shareholder value. Prominent among these
resilience and creativity. We ended the year
was our decision to “buy DuPont” by
this review are examples of how our businesses are building absolutely determined to accelerate value
initiating a $5 billion share repurchase
creation for our shareholders in 2006.
sustainable growth in industries and economies around the world. program that is an investment in the growth
Natural disasters in different parts of the and future of our company. We completed
We have also invited two distinguished experts, Dr. J. Craig Venter world and record-high energy and raw $3 billion of the program in October 2005.
material costs combined to test our ability
and Dr. Florence Wambugu, to share their visions of how sustainable The other actions include:
to adapt and respond. In the third quarter,
growth can create even greater value in the future. Increasing cost productivity over the
■
hurricanes in the Gulf Coast of the United
next three years by standardizing and
States idled 14 of our plants. Our people
simplifying supply chains and support
acted heroically and compassionately to
functions globally to generate cost and
help each other and their neighbors, and got
working capital savings of $1 billion each.
our operations back up and running as
quickly as possible. We also provided fuel,
Improving our returns on capital for all
■
food, and shelter to emergency service
businesses below our 12 percent hurdle
workers and our neighbors.
rate for return on net assets.
The extended shutdown of key facilities had
Accelerating science-based innovation by
■
a significant financial impact across several
30 percent by prioritizing programs for
businesses, and energy prices, which were
faster and larger payoffs by 2010.
already tending upward, skyrocketed in the
Faster commercialization of our $3 billion
■
storms’ aftermath. Again, the response of
pipeline of bio-based materials.
our businesses was outstanding. Over the
course of the year, we were able to offset
We are able to take these decisive actions
more than $1 billion in record-setting high
despite the headwinds we encountered last
energy and raw material costs through
year. Our progress confirmed for us that our
pricing, creative materials sourcing, and
growth strategies are the right ones,
more effective plant utilization.
and they are working. Increasingly, our
differentiated advantage and the creation
Sustainable Growth of shareholder value is linked to our
capabilities as a science company.
In 2005 we completed the transformation
of DuPont from a chemical and materials
A 21st Century Science Company
company into a science company. We have
focused on our mission of sustainable
Our vision is to be the world’s most
growth, which we define as increasing
dynamic science company, creating
™ ™
DuPont Artistri ... Combining a 300-year-old tradition with 21st century technology shareholder and societal value while decreasing
sustainable solutions essential to a better,
our environmental footprint along the value
safer, healthier life for people everywhere.
chain. While chemistry remains vital to our
As a 21st century science company, we are
businesses, the addition of biology has
committed to bringing value to peoples’
opened tremendous new opportunities.
lives through science-based solutions to
On the Cover: This Yuzen-dyed
We have turned our world-leading research
kimono, depicting various elements global needs. At a time when the external
capability to inventing what our customers
of nature, represents a 300-year-old
scrutiny and skepticism of all things related
history and tradition in Kyoto, Japan. tell us they need to grow their businesses.
to “big business” is increasing, we believe
Now DuPont™ Artistri™ digital
we have a unique opportunity to
We are focused in a special way on the
printing for textiles blends an ancient
differentiate DuPont in the public arena
art with 21st century technology to customers we have identified as most critical
create stunning kimono silk judged in and the marketplace because we will be
to our future. Revenues from this group are
competition and in the marketplace to
driven by two things: values-based
increasing at two times the company’s
be comparable to silk printed using
innovation and transparency.
average revenue growth rate. At the end of
traditional methods.
2005 we had in place dedicated,
DuPont 2005 Annual Review 1
3. created the world’s first insulating Declaration, the first-ever industry-led global
breathable membrane, which enables initiative to examine ways to improve
builders to meet insulation standards workplace safety globally.
without having to increase wall thickness.
Transparency
This new Tyvek® reduces the heating bill of the
average home by 13 percent and reduces
One of the greatest challenges facing large
CO2 emissions by 15 tons per building.
companies today is earning public trust.
Earlier this year, we reached a significant The need for transparency is greater than
milestone in progress toward reducing ever before, especially for a science
emissions of PFOA, an essential processing company working at the leading edge of
aid used in the manufacture of exciting but largely unfamiliar technologies.
fluoropolymers. Because PFOA is a Also, as global business becomes more
persistent material in the environment, complex, new and current knowledge from
the U.S. Environmental Protection Agency both inside and external to the company
(EPA) announced a voluntary industry-wide is required.
PFOA stewardship program. DuPont played
One form of transparency is accomplished
a leadership role in collaborating with EPA
through the external oversight provided
to develop the program. It builds on actions
by our Health Advisory Board and our
we are taking globally to reduce environmental
Biotechnology Advisory Panel. Each of these
exposure to PFOA. EPA said that our
groups is made up of outstanding external
voluntary actions demonstrate strong
leaders in their respective fields who review
leadership and set an example for the rest of
our plans and programs and provide
the industry to follow. DuPont has already
guidance based on their observations and
reduced PFOA emissions by 95 percent in
experience. Their insights have been most
Chad Holliday the United States and 90 percent worldwide.
helpful. We grapple with the societal and
Chairman and CEO The industry effort will accelerate the
commercial ramifications of emerging
reduction of PFOA emissions to the
technologies and their adoption. Since its
environment, while ensuring continued
creation in 2000, our Biotechnology Advisory
availability of essential products in
We continue work in the emerging field of
Values-Based Innovation Panel has included a total of 15 recognized
industries such as telecommunications,
nanoscale science and engineering, in which
leaders from 10 countries, representing
Innovation is the heart of our enterprise. aerospace, semiconductors, fire fighting and in
DuPont is an acknowledged leader. The
a wide range of disciplines and cultures.
We introduced 1,133 new products and new consumer markets. To date, no human health
emergence of new tools and techniques for
The Health Advisory Board, established
product applications in 2005. With sustainable effects are known to be caused by PFOA.
the measurement, characterization and
in 2003, includes eight external medical
growth central to our corporate mission, control of nanoscale features gives rise to
We are applying dynamic science to protect professionals.
innovation at DuPont is consistent with a many new opportunities. For example,
people at home and at work. Safety
clear set of core values. Our values template DuPont™ Voltron® nanocomposite wire We continue to work with leading
leadership means working together with
consists of the values that have historically enamels, which extend insulation test life, nongovernmental organizations
other members of industry, as well as with
guided DuPont — safety and health, are being used in motor windings and will to understand and integrate safety and
governments and non-government
environmental stewardship, ethical behavior, be used in hybrid vehicles. Good product environmental criteria into our research,
organizations. To that end, during the
and respect for people. stewardship requires a commitment to development and commercialization
111-country World Safety Congress in
identifying and managing any potential risks processes in order to ensure that our
Some examples of values-based innovation 2005, DuPont initiated the World Safety
to ensure the safety of this technology as it products, processes and services are
at DuPont:
finds wider application around the world.
Our newest technology platform, DuPont
We continue to take strong actions in the
Bio-Based Materials, will apply biology and First Bio-Based Materials Plant
voluntary reduction of greenhouse gas With joint venture partner Tate & Lyle
chemistry in an integrated way to create
PLC, we are completing the construction
emissions, having reduced these emissions
unique and compelling solutions in the
of a new plant in Tennessee that will be
by 72 percent over the past decade. We
materials, energy, surfaces and medical used to manufacture Bio-PDO™. This is
believe that the science is sufficiently
markets. Bio-Based Materials is the right a key ingredient for our first bio-based
compelling to take prudent actions to
science at a time when energy costs are at polymer, Sorona®. Making Bio-PDO™
address global warming and its potential for from corn uses 40 percent less energy
record highs, and DuPont has the science
than that needed to produce a
climate change. We also offer products that
lead to bring these new innovations to
petroleum-based equivalent. Our new
help others achieve their own reductions.
market in a sustainable way. We place a plant will save the equivalent of 10
One of our teams in Europe developed an
current value of $3 billion on our bio-based million gallons of gasoline per year, or
innovative type of DuPont™ Tyvek® and
materials pipeline. enough to fuel 22,000 cars annually.
DuPont 2005 Annual Review 3
2
4. DuPont Corporate Highlights
providing more sustainable solutions. In this Review, we also have invited two (dollars in millions, except per share)
For example, we are partnering with distinguished outside experts to reflect on
Operating Results 2005 2004
Environmental Defense to develop a system science and sustainable growth from
to manage potential risks associated with their unique perspectives. Dr. J. Craig Venter
Net Sales $26,639 $27,340
nanotechnology. We have also worked led the team that sequenced the human
with the World Resources Institute and genome and is today pursuing the exciting Net Income $2,053 $1,780
the Pew Center on climate change issues. field of synthetic genomics. Dr. Florence
Depreciation and Amortization $1,358 $1,347
Wambugu is CEO of Africa Harvest and is
Recognition for Our Accomplishments working at the leading edge of programs to Capital Expenditures $1,406 $1,298
achieve sustainable economic growth through
As we pursue sustainable growth through Research and Development Expenses $1,336 $1,333
science in developing countries of Africa.
science-based innovation, our
We are proud of the leadership roles our Financial Position, Year End
accomplishments have brought the kind of
people and businesses demonstrated in
recognition that makes DuPont a benchmark
Total Assets $33,250 $35,632
2005. We believe that our contributions as a
company in key areas. An independent
21st century science company will continue
panel of experts assembled by Net Debt* $6,329 $2,949
to benefit our customers and consumers on
BusinessWeek magazine named DuPont the
Stockholders’ Equity $8,907 $11,377
a world stage, offer outstanding growth
top green company of the past decade for
opportunities, and create value for our
our greenhouse gas emissions reductions
Data Per Common Share
shareholders.
and our leadership. We were awarded the
Black Pearl Award by the International Net Income — Diluted $2.07 $1.77
Association for Food Protection for our
Dividends $1.46 $1.40
efforts in advancing food safety and quality.
Scientific American named DuPont among Market Price Range $54.90 – 37.60 $49.39 – 39.88
Chad Holliday
the Scientific American 50, a list of the
Chairman & CEO
leaders shaping the future of technology, for General
March 1, 2006
our work in nanotechnology.
Average Shares of Common Stock Outstanding (millions) 989 1,003
*The company defines net debt as total debt less cash and cash equivalents and marketable
debt securities. A reconciliation of total debt to net debt can be found in Part II, Item 7 of the
company’s 2005 annual report on Form 10-K.
Milestone Patent Awarded This publication contains forward-looking statements based on management’s current
U.S. Patent 7 ,000,000 “Polysaccharide
expectations, estimates and projections. All statements that address expectations or
Fibers” was issued on February 14,
projections about the future, including statements about the company’s strategy for growth,
2006, to John P O’Brien, of DuPont
.
product development, market position, expected expenditures and financial results are
Central Research & Development
for inventing polysaccharide fibers forward-looking statements. Some of the forward-looking statements may be identified by
— “cotton-like” fibers derived from words like “expects, “anticipates, “plans, “intends, “projects, “indicates, and similar
” ” ” ” ” ”
biologically based renewable
expressions. These statements are not guarantees of future performance and involve a
resources. They are biodegradable
number of risks, uncertainties and assumptions. Many factors, including those discussed
and highly suitable for use in
more fully in documents filed with the Securities and Exchange Commission by DuPont,
textiles. It was the 33,801st U.S.
patent awarded to DuPont since particularly its 2005 Annual Report on Form 10-K, as well as others, could cause results to
company founder E.I. du Pont was differ materially from those stated. These factors include, but are not limited to changes
granted U.S. Patent No. 590 in
in the laws, regulations, policies and economic conditions, including inflation, interest and
1804 for a “machine for granulating
foreign currency exchange rates, of countries in which the company does business;
gun powder. ”
competitive pressures; successful integration of structural changes, including restructuring
DuPont senior researcher plans, acquisitions, divestitures and alliances; cost of raw materials, research and
John P O’Brien converts sugar
.
development of new products, including regulatory approval and market acceptance;
and water into a polysaccharide
and seasonality of sales of agricultural products.
that can be made into novel fibers
using an industrial biotechnology
process that received the 7 millionth
U.S. patent.
DuPont 2005 Annual Review 5
4
5. The Power and the Promise of Science
Dr. J. Craig Venter is one of the leading scientists of the
21st century for his visionary contributions in genomic research.
How would you characterize the power What from your perspective are the
markets where science can have the
and promise of science overall?
most dramatic impact in the future?
Scientific literacy is no longer optional, but
That is the challenge — actually picking those
rather is a requirement for modern societies
markets. DuPont has been incredibly
to continue to advance. Science offers us real
successful doing this, especially in the area
hope in solving many of the challenges facing
of polymer chemistry. Obviously, today the
the world today including disease, hunger,
energy market is one of the single biggest
and renewable energy. Specifically for DuPont,
markets, and a focus there on sustainable
I think science will be a crucial component in
energy would be well rewarded. This will be a
dealing with problems, such as carbon sources
challenge, because the energy market is of a
and manufacturing products, in a cost-effective
much greater scale than what biology has dealt
and environmentally friendly way.
with in the past. The reward, however, is the
potential to change all manufacturing for the
At DuPont we talk about integrated
better. Making manufacturing eco-friendly is
science — that our most promising
not just a nice thing to do, but given what’s
opportunities come at the intersection happened in the last year or so with energy
of scientific disciplines, where fields prices, it’s going to become an economic necessity.
meet or overlap. What is your view?
How do you see the relationship J. Craig Venter, Ph.D.
I think that integration is the only strategy
between scientific development and Founder and president, J. Craig Venter Institute,
that truly works today. In fact, most of the
Co-founder and CEO, Synthetic Genomics, Inc.
the drive for sustainability?
advances that I’ve made have come about
through the merger of new technologies We have to replace oil and coal as our source
with new fields. The work that we’ve done of carbon across the board. This will change been a decade since my team sequenced the going to be such a phase shift that it’s hard to
in genomics at the Venter Institute has been everything from sources of energy to first genome and already we can now imagine the total impact. Everything from
accomplished by multidisciplinary teams chemical and pharmaceutical synthesis to sequence hundreds of genomes in a month. food and energy production to chemical and
that include software engineers, computer large-scale polymer development. The Sorona® We’re inundated with constantly changing pharmaceutical manufacturing could
engineers, molecular biologists, and polymer DuPont developed is something that scientific processes. The problem is that you potentially be revolutionized through
geneticists. Stove-piped fields of inquiry can affect daily life on a substantial scale. cannot look back historically to understand synthetic genomic advances.
ultimately don’t work. And we believe, like Much of modern life has the potential to be the future. The only approach is to take more
To realize the full potential of synthetic
you, that we can only move forward in an radically transformed by applying modern, risks at the leading edge of science to be
genomics, we must first advance our
integrated fashion. It’s the intersection of leading-edge science to these issues. there to help drive it in the right direction. A
knowledge and understanding of the first
all these areas that are resulting in new company like DuPont can’t afford to sit back
New developments in science that lead to principles of biology. If we can build DNA
developments. and watch other companies develop the new
changes in manufacturing and energy in a cassette-based fashion, it becomes
approaches, so my advice would be to build
I believe that DuPont is the absolute leader resources are the only hope I see for analogous to the paradigm shift in electronic
on your successes and be bold.
sustainability. The companies that can
on this front. You are conducting one of the
design that occurred on the order of 50
implement these changes will be the global
most important and large-scale manufacturing
years ago, when capacitors, resistors, and
Is there any innovation that you are
winners on an unprecedented economic scale.
experiments right now with the Bio-PDO™
transistors enabled the building of an endless
pretty sure is going to occur, but that
We’re going to need to use renewable resources
plant in Tennessee. The scientific and business
amount of electronic products using the
the public hasn’t contemplated yet?
like sugar and couple these with natural
communities are watching this closely. This kind
common components and integrated circuits.
systems for manufacturing processes — then
of manufacturing - using a natural resource
With synthetic genomics, we’re learning how
I think the new field of synthetic genomics
we’ll be utilizing truly sustainable techniques.
like sugar to provide carbon in a renewable
to make the integrated circuits of biology.
that my team and I are helping to start, is one
fashion, rather than using oil — will be a key
From the work that my team and I are doing
that’s right on the threshold of making a
How would you advise DuPont in the
strategy for the future. I think the Bio-PDO™
with our global ocean expedition alone,
major impact on society. If we can actually sit
kind of choices it makes in using
plant is the first large-scale test of these
we’ve already discovered nearly six million
down at the computer and design a living
science to deliver products and
ideas. It’s incredibly exciting what DuPont
new genes. Those represent a great deal of
organism to carry out a specific function that
solutions to the world?
has done — mixing molecular biology, basic
potential design components with which
more efficiently enables a manufacturing
microbiology, and large-scale engineering.
to work. Synthetic genomic manufacturing
process, versus spending decades searching
The rate that science and technology are
Biological and other scientific power will
design is essentially limited only by our
the environment for an organism that does
changing is simply breathtaking. Just look at
become the future economic driving forces.
imagination.
specifically what we want it to do, that’s
what’s happened to DNA sequencing. It’s only
DuPont 2005 Annual Review 7
6
6. The Science of Hope and Opportunity
Dr. Florence Muringi Wambugu is an agricultural plant pathologist
with specialization in virology and genetic engineering for viral
disease crop protection.
community. The project culminated in its first
What role can technology play in
harvest of bananas grown from tissue culture
improving the lives of people in
propagation — the process of growing plant
developing countries in Africa?
shoot tip tissues in a laboratory until they
Global challenges require global solutions — become plantlets ready for transplanting into
and recognizing this is the key to success. the field.
That’s why Africa Harvest is focused on the
Because of the highly controlled starter
challenges of food security, health and
environment, tissue culture propagation
nutrition in Africa. Today, more than 200
significantly reduces disease and dramatically
million people live in hunger and poverty in
improves yield. Tissue culture technology in
sub-Saharan Africa. But by leveraging the
Africa has increased banana productivity
power and potential of biotechnology, we can
from 20 to 45 tons per hectare.
help reduce this hunger and poverty — both
now and in the future. That increase helps reduce hunger and
increase the standard of living for Chura
Africa Harvest is already working on two such
village banana growers. For the typical Chura
initiatives. The banana tissue culture project,
family, which averages ten individuals,
based in the Chura community of Nairobi,
increased production translates to a climb in
Kenya, is a short-term intervention whose
income from the current average of $1 per
goal is to address the immediate challenge of Florence Wambugu, Ph.D.
day, per family, to as much as $3 per day, per CEO, Africa Harvest Biotech Foundation International
hunger, poverty and malnutrition. The project
family. With a goal of increasing sustainability
is focused on increasing farmer income
among the local community, 2,500 farm
through increasing production. Local farmers,
families — or 25,000 individuals — have
by switching to culture tissue propagation, Building on the proven concept of enhancing Remember, hunger is a global problem that
benefited from the Chura tissue culture
have been able to increase banana production, corn with essential amino acids, scientists will requires global solutions. For too long, many
banana project to date. It is estimated that
and their standard of living, significantly. apply the latest biotechnology to improve the organizations have done commendable work
50,000 people will be positively affected as
lives and health of as many as 300 million people on their own. However these individual
Africa Harvest is also leading the efforts on the program continues.
in Africa. The long-term impact will be seen as efforts have not had the impact we’re seeing
long-term solutions, such as the Africa
African scientists develop the expertise that will through collaborations and coordination with
Biofortified Sorghum (ABS) project, which How do you envision the long-term
indirectly support biosafety policy development, companies such as DuPont.
seeks to improve the nutrient density of impact potential of the ABS Project? which will, in turn, hasten the development of
sorghum, a staple in the African diet. At the Through these partnerships, Africa Harvest is
African-owned genetically modified crops and
The need obviously is great, and so too is the
same time, the project is focused on building creating new paradigms with our vision to
products to foster both nutritional
potential, especially with global support. That
African scientific expertise by training top fight hunger, poverty and malnutrition
enhancements and economic development
support has come not only from DuPont and
African researchers to apply this technology through scientific solutions with a specific
in Africa. Through international cooperation
our other public and private partners, but
themselves. Both the tissue culture banana focus on poor communities in Africa. The
and partnerships, we envision more open
also through the Bill & Melinda Gates
and ABS projects show the potential banana tissue culture project and the ABS
sharing of technology and greater acceptance
Foundation, which has committed $435
biotechnology has, through public/private project can serve as models, reaching across
of biotechnology in the future.
million to fund 43 global health projects,
partnerships, in the quest to improve the borders towards a better Africa.
including the ABS project. Although breeders,
global society.
What does the future hold for Africa Africa Harvest is collaborating with
using conventional technology, have made
universities, industry and governmental
Harvest and the communities you
incremental improvements in the nutritional
How has the tissue culture banana
partners to tackle specific African challenges
work with?
value of sorghum, the ABS project will build
project changed the lives of people
through these projects. But long after these
on progress made so far by using
in the Chura Village? Science has contributed to greater prosperity challenges are met, look for Africa Harvest to
biotechnology to develop a “super sorghum”
and better lives for people around the world, continue to show the way with innovative
Africa Harvest teamed with DuPont on a enhanced with the essential amino acids
especially in developed countries. However, solutions to feed a growing African
project aimed at boosting banana production (lysine and methionine), vitamin A, iron and
the majority of people in developing population.
in Chura. The focus was to use science to zinc through genetic biofortification.
countries, especially in Africa and Asia, still
make an immediate impact on the lives of the
are poor, hungry and undernourished. Africa
Harvest is working aggressively to change that.
DuPont 2005 Annual Review 9
8
7. DuPont Agriculture & Nutrition
Food is sustenance. Without a bountiful, safe, nutritious food supply
for people and animals everywhere, sustainable growth has no meaning.
The mission of DuPont Agriculture & Nutrition is to deliver global
nutrition through higher crop yields and healthier foods while
developing solutions to help meet the world’s energy needs.
Pioneer® brand corn hybrids are the “gold which controls powdery mildew in cereals,
standard” in agriculture. Farmers using received its first global registration in Poland.
Pioneer hybrids won 23 of the 27 national
Significant progress was made across the
titles in the U.S. National Corn Growers
Agriculture & Nutrition research pipeline in
Association 2005 Yield Contest. The
2005. Advancements include the first of a new
company debuted 95 new corn hybrids
class of high efficacy, low toxicity insecticides,
globally, combining exceptional yield potential
and a new biotech herbicide resistance trait
with insect protection and herbicide resistance.
for corn, soybeans and cotton that maximizes
With the U.S. regulatory approval of its
yield potential, improves crop safety and
Herculex® XTRA in 2005, Pioneer customers
expands weed control options.
now have access to the broadest in-plant
protection from costly insects. Some Pioneer To continue to deliver the healthful benefits of
hybrids also give processors 2-4 percent more soy to consumers, The Solae Company joined
ethanol per bushel, increasing supply for this with Yoplait in France to introduce Bioplait
valuable vehicle fuel. Pioneer launched 26 new yogurt with Solae® brand soy protein. The Bunge
soybean varieties in 2005 and is increasingly DuPont Biotech Alliance is also working with
being recognized as the soybean yield leader. Kellogg to increase production of Nutrium™,
the company’s low linolenic soybean oil, which
Pioneer made progress in the ever-growing
helps eliminate trans fatty acids in foods.
Brazilian market, increasing sales and brand
loyalty by bringing customers into the hybrid And to improve sustainable agriculture and
selection process through participation on a fight malnutrition, DuPont was proud to
Product Advancement Team. The Brazil DuPont contribute technology and expertise to improve
Crop Protection Team worked with Bunge the nutritional value of sorghum in parts of
Limited to help deliver soybean protection Africa. The donation was made to Africa
solutions to Brazilian farmers with greater Harvest to help support a $16.9 million grant
efficiency and savings. from the Bill & Melinda Gates Foundation.
Herculex® Insect Protection by Dow AgroSciences and Pioneer Hi-Bred.
From the U.S. Great Plains, to Poland, to Herculex® is a registered trademark of Dow AgroSciences LLC.
Argentina, DuPont Agriculture & Nutrition
Photos: (Facing Page) DuPont Agriculture & Nutrition
continued making remarkable advances in
opens new horizons for farmers worldwide. (Left)
crop protection. DuPont™ Finesse® grass and Talius® fungicide helps Polish agriculture fight
broadleaf herbicide was so enthusiastically powdery mildew on cereals. (Right) Latin American
farmers increase crop yield with the help of DuPont.
received by American wheat growers that it
sold out its launch. DuPont™ Talius® fungicide,
Core Markets:
Production Agriculture;
Food Processing.
2005 Sales: $6.4 Billion
DuPont 2005 Annual Review 11
10
8. DuPont Coatings & Color Technologies
As more and more of the world’s citizens enter the “consumer
society,” global opportunities have grown for DuPont Coatings &
Color Technologies. The year 2005 was a clear illustration of how
dramatic those opportunities really are—and how they can help
drive sustainable growth in the years to come.
From China to Mexico, DuPont Coatings & Artistri™ into new growth markets for flags,
Color Technologies made 2005 a year of soft signage and t-shirts.
significant achievements in worldwide markets.
In the Americas, DuPont completed its
That was especially true in China, where acquisition of Powder Coatings de Mexico,
DuPont and the City of Dongying (Shandong strengthening the company’s position as a
Province) signed a project agreement to leader in the powder coatings market
build a world-class titanium dioxide (TiO2) throughout the Western Hemisphere.
plant. Wholly-owned by DuPont, the plant Additionally, 2005 saw the acquisition of
will be the company’s largest single investment the Standox-Max joint venture in Mexico,
project outside the United States. With a resulting in the opening of an upgraded
planned completion date of 2010, the plant distribution network.
will have an initial capacity of 200,000 tons of
The DuPont Aviation Finishes brand was
TiO2 and will employ about 350 people, mostly
launched as a key growth initiative, delivering
from the Dongying area.Total investment is
a complete product line of high-performance
projected at more than $1 billion, including
coatings for completion and refinishing of
DuPont’s initial costs, facilities installed by the
aircraft. Route-to-market was expanded in
city and suppliers and eventual expansion.
2005 from general aviation OEM sales to
2005 also saw a milestone achievement in the general aviation-focused distributors.
Japanese market as DuPont opened a $10
The growing worldwide presence of DuPont
million laboratory in Aichi Prefecture. The new
Coatings & Color Technologies is expected to
facility is focused on the development and
gain even greater momentum in 2006 with
testing of automotive original equipment
the launch of a commercial titanium powder
manufacturer (OEM) coatings to meet the
business. Harnessing the latest efficiencies in
requirements of Japanese automakers and
powder metallurgy, this effort is projected to
rising consumer demands for aesthetics and
dramatically reduce titanium part cost.
durability. DuPont coatings go on one-third of
Photos: (Facing Page) For architectural application,
the vehicles produced by the world’s major
DuPont provides decorative and functional powder
automobile manufacturers.
coatings, and for construction, specialty coatings
for corrosion control and fire protection. (Left)
DuPont™ Artistri™, a fully integrated
DuPont OEM and Refinish coatings meet rising
offering for digital textile printing, continued
demands for aesthetics and durability. (Right) A new
its rapid growth in global markets. In 2005, $10 million laboratory facility in Japan serves the
ink and software innovations extended nation’s automakers.
Core Markets: Automotive;
Collision Repair; Paper;
Industrial Coatings; Digital
Printing; Architectural
Coatings; Plastics.
2005 Sales: $6.2 Billion
DuPont 2005 Annual Review 13
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9. DuPont Electronic & Communication Technologies
Where science and technology converge, amazing things begin to
happen. Light is transformed into electrical energy, and new
alternative energy sources emerge. Tiny chips and embedded
components at the core of smaller, faster electronic devices enable
more sophisticated functionality and new ways to connect globally.
And we continue to seek more sustainable solutions for future
growth. DuPont Electronic & Communication Technologies is
leading the way… to a world of new possibilities.
Incentives flourish to develop alternative DuPont Electronic & Communication
energies from renewable resources as Technologies continues its rapid growth in
today’s energy needs — and costs — increase. Asia, creating additional capacity for
With expected growth in solar energy from DuPont™ Kapton® polyimide film at Toray
photovoltaic (PV) technology averaging 25 DuPont Company in Japan. In Korea, a joint
percent each of the next few years, DuPont is venture with Samsung’s Cheil Industries,
establishing itself clearly as a leader in PV, SD Flex Company, is meeting the soaring
with a broad portfolio of integrated materials. market demand for DuPont™ Pyralux®
DuPont’s commitment to PV technology is flexible circuit materials. And, DuPont is
demonstrated in part by the installation of the
constructing a new fluoroproducts facility
company’s first PV-based power system in
to produce PTFE fine powders and dispersions
Wilmington, Delaware. DuPont is also driving
at its multi-product complex in China.
the technology that will make fuel cells a
commercial reality. In fluoroproducts, DuPont introduced a new
product line of easy-to-use, non-ozone-
Semiconductors are the foundation of electronics
depleting retrofit refrigerants. Through the
— and DuPont Electronic & Communication
acquisition of the ISCEON® hydrofluorocarbon
Technologies offers a growing portfolio of
(HFC) refrigerant blends business from Rhodia,
innovative materials for semiconductor
DuPont is bringing even more sustainable
fabrication, packaging and circuit applications.
solutions to its global customer base.
DuPont connects science and technology from
across the company, spanning polymers, fibers, Buried Capacitance® is a registered trademark of Sanmina-SCI.
photopolymers, dispersions, coatings and film to Photos: (Facing Page) Materials from DuPont
enable advanced semiconductor manufacturing. Electronic & Communication Technologies help
Another advance in electronics, DuPont™ photovoltaic cells create electricity from the sun’s
rays. (Left) Non-ozone-depleting retrofit refrigerants
Interra® HK polyimide laminates, is now
offer globally sustainable solutions. (Right)
licensed for widespread use with
Innovative materials from DuPont are key to the
Sanmina-SCI’s patented Buried Capacitance®
manufacture of today’s electronics.
technology. Interra® embedded passive
materials are instrumental in the manufacture
of smaller, more reliable electronic devices.
Core Markets: Semiconductors;
Printed Circuit Boards and
Components; Communications;
Displays and Imaging;
Industrial Markets.
2005 Sales: $3.5 Billion
DuPont 2005 Annual Review 15
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10. DuPont Performance Materials
Sustainable growth takes many forms. Advances in plastics technology
can help sustain human life in an auto crash. Developments in
polyester additives can improve the environmental efficacy of oil
and gas piping. Advanced resins can give mobile phones the
durability to survive the bumps and bangs of daily living. In
short, when products are built to perform, they are built to endure.
The market for car sunroofs grows at 10 to under the DuPont™ Pipelon® brand. Pipelon®
15 percent a year. And in the luxury car market represents an advancement in wear and
especially, the growth has been driven by permeation properties of flexible on and
so-called “panoramic” sunroofs, which can, offshore piping material. In addition,
in some cases, stretch over the entire length benefits of Pipelon® include potential
of a car’s roof. That certainly creates a capability to produce deeper operating pipe
dramatic environment. But it also gives rise systems as well as environmental benefits
to significant safety issues, especially in the through reduced permeation.
event of a crash, as well as concerns about
DuPont also enjoyed a substantial increase in
weight. Neither single-layer tempered glass
its business with mobile phone giant Nokia in
nor standard laminated glass, the previous
2005, building on the ability of DuPont™ Zytel®
benchmarks for sunroof technology, are ideal
HTN to provide the improved durability and
to accommodate larger designs. But DuPont™
performance needed for the next generation
Spallshield® can. A composite of PVB and PET,
of cell phones, with their larger screens and
which is then applied to a single, standard
increased requirement for damage resistance.
layer of glass, Spallshield® provides all the
DuPont became a true design and
benefits of standard laminated glass, yet is
development partner for Nokia, working closely
five to eight times stronger and 25-30 percent
with the company’s entire global supply chain
lighter. The German company Webasto is
in design, molding, testing and processing
already using Spallshield® with its ProTec®
support. Nokia’s embrace of HTN also led to
glass, which debuted in 2005 on the new
sales of DuPont™ Hytrel® and DuPont™
S and R class models from Mercedes-Benz.
Delrin® polymers. The totality of the work
As worldwide demand for oil and natural gas resulted in a DuPont Marketing & Sales
increases dramatically, the petroleum industry Excellence Award in 2005.
will need to invest billions more in exploration ProTec® is a trademark of Webasto AG.
to meet global consumption estimated to rise to
Photos: (Facing Page) DuPont Performance
100 million barrels per day by 2020. This Materials is driving for increased levels of safety
increase in exploration requires high in auto sunroofs. (Left) Avon looks to DuPont for
aesthetic and durable packaging solutions. (Right)
performing, economical solutions for oil
A water spacer jacket of DuPont™ Zytel® makes the
and gas piping. DuPont has responded by
Lexus V-6 engine about 1 percent more fuel-efficient.
introducing a family of polymers and additives
Core Markets: Automotive;
Packaging; Construction;
Consumer Durables;
Electrical and Electronics.
2005 Sales: $6.8 Billion
DuPont 2005 Annual Review 17
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11. DuPont Safety & Protection
Challenges to human health and safety are all around us.
New diseases poised to sweep the globe. Infections make already
vulnerable hospital patients even more vulnerable. Natural
disasters threaten to sweep away the very fabric of our lives.
Sustaining people in times of danger, and anticipating new
threats, is the everyday work of DuPont Safety & Protection.
The possibility of an avian flu pandemic was The DuPont product most associated with
perhaps the major health-related news story safety and protection, DuPont™ Kevlar®, marked
in 2005, as the disease has the potential to its 40th anniversary in 2005. And as proof that
threaten human life and to disrupt the global the market for Kevlar® continues to grow as the
food supply. DuPont Safety & Protection fiber enters its fifth decade, it can now be found
fought back with a comprehensive approach in the world’s largest commercial jetliner, the
to biosecurity featuring an integrated systems Airbus A380. In combination with its sister
methodology: protective apparel; chemicals fiber, DuPont™ Nomex®, as well as a host of
to clean and disinfect; and safety management
other DuPont products, Kevlar® makes the A380
solutions. This multi-pronged approach to
lighter, stronger and more durable.
advancing food safety and quality was one
DuPont Safety & Protection also enabled safer
of the reasons DuPont was honored in 2005
lives in 2005 by joining more than 25 other
with the prestigious Black Pearl Award by the
International Association for Food Protection. major companies in committing to the
DuPont-inspired World Safety Declaration, the
To protect both patients and medical
first-ever agreement by industry to the
personnel from infections in the operating
global improvement of workplace safety.
room, DuPont Safety & Protection added
DuPont’s pre-eminent position in safety was
DuPont™ Suprel® to its arsenal of products.
further demonstrated by its sponsorship of
In addition to providing enhanced infection
the World Congress on Safety and Health,
protection, this innovative, high technology
held in the United States for the first time in
fabric offers a substantial advance in comfort
2005. Worldwide leadership on safety has
under the high stress conditions of surgery.
helped drive the growth of DuPont Safety
DuPont Safety & Protection also made
Resources as well, making it the premier
significant inroads into the construction industry
safety management consulting organization.
with its new building innovations offering.
Photos: (Facing Page) Firefighters and other first
With increasing energy costs and the need
responders count on DuPont Safety & Protection for
for improved structural integrity (proven by
high performance protective gear. (Left) DuPont™
the 2005 hurricane season in the United
Building Innovations™ provides environmentally
States), DuPont is providing answers with
sustainable building solutions. (Right) DuPont™
products and integrated systems that define Kevlar® Comfort XLT™ enables vests to be 25 percent
a building’s structural, environmental and lighter than existing aramid body armor.
safety performance.
Core Markets: Construction;
Manufacturing; Consumer;
Government; Health Care;
First Responders.
2005 Sales: $5.2 Billion
DuPont 2005 Annual Review 19
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