DuPont adapts to oil costs

..DuPont’s coatings unit is scrambling to figure out its next step as profits and sales volumes drift downward. And the unit’s problems are emblematic of why some investors are souring on DuPont stock.

DuPont’s shares hit one-year lows last week after the company reduced the top end of its full-year earnings estimates. Sales volumes declined in the United States and Europe last quarter, raising doubts about how long DuPont can keep raising prices to stay ahead of oil and natural gas, the raw material of most DuPont products.

The problem is magnified for DuPont’s $6 billion coatings business, because its biggest customers are ailing automakers like Ford and General Motors. Meanwhile, makers of the resins and solvents used in DuPont paints are raising their prices.

Delaware Online