Can E I Du Pont De Nemours And Co (DD) Bounce Back? – SWOT Analysis

Threats:

1. Raw Material Cost Hikes

Higher energy and commodity prices would have been more of a hindrance to results last year if Du Pont hadn’t offset them by passing them along. This year, seed input and titanium ore costs are expected to climb. If Du Pont can offset these expenses in a timely manner it will likely perform well, regardless.

2. Cyclical Titanium Dioxide Downturn

Du Pont is the world’s largest supplier of that compound. However, sales are currently hampered and pricing weakness is restraining margins. Still, Du Pont is investing in a $500 million Mexico-based facility and upgrading production sites elsewhere. Thus it is anticipating a sharp turnaround.

Conclusion

Du Pont’s bottom line is likely to resume an upward trajectory this year, as positives including its Agriculture unit and acquisition upside exceed the effect of the slowdown in its Performance Chemicals category. Accordingly, with the shares significantly off their 52-week apex, they may be poised to outperform the market.

The article Can DuPont Bounce Back? – SWOT Analysis originally appeared on Fool.com and is written by Damon Churchwell.

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