DuPont’s Industrial Biosciences segment in 2Q17
DuPont’s (DD) Industrial Biosciences segment is the lowest revenue generator for the company. The segment accounted for 5.30% of DuPont’s overall revenue in 2Q17—compared to 5.0% in 2Q16. The segment reported revenue of $395 million in 2Q17—an increase of 11.30% on a YoY (year-over-year) basis. In 2Q16, the segment reported revenue of $355 million.
The segment’s growth was driven by good volume growth in the biomaterials, bioactives, and clean tech business line. Sorona® fiber apparel growth increased the biomaterials’ volumes due to the product’s price increase. Bioactives witnessed growth from the grain processing industry. New product launches in household products and food also helped the bioactives business. Stronger refining demand helped clean tech report higher volumes.
Segment’s operating income and margins
The volume growth and pricing’s positive impact caused in the segment to post a higher operating income. The segment reported an operating income of $76 million—an increase of 22.60% on a YoY basis. In 2Q16, the segment’s operating income stood at $62 million. Higher growth in the segment’s sales resulted in margin expansion. The segment’s operating margin for 2Q17 was 19.3%—compared to 17.50% in 2Q16, which implies an increase of 175 basis points YoY.
Investors can hold DuPont indirectly by investing in the SPDR SSGA Gender Diversity Index ETF (SHE), which has invested 2.10% of its portfolio in DuPont. The fund’s other holdings include Pfizer (PFE), IBM (IBM), and Amgen (AMGN) with weights of 5.50%, 3.90%, and 3.70%, respectively, as of July 25, 2017.