Updates: DuPont boosts profits as sales rise; Ametek up too

DuPont Co. shares rose nearly 4% in morning trading, making it the top stock in the Dow Industrials index, after the Wilmington chemical, pesticide and seed giant said it sold 21 percent more on volume in the second quarter of 2010, and was able to boost prices another 5 percent, bringing total revenues to $8.6 billion, up 26% from the depressed spring of 2009. Shares traded above $40 for the first time since - first-quarter earnings. DuPont results here.

Revenues in China and other Asia market rose nearly 50 percent. DuPont marked its biggest sales increases in solar panels and other electronics, performance materials especially auto paint (titanium dioxide) and refrigerants, industrial safety materials, US seeds and Latin American pesticides, and cited the "continued global economic recovery."

2010 sales in China and Taiwan are up 70% from last year so far; future increases will be at a lower, "more sustainable pace," chief executive Ellen Kullman told investors in a conference call. She sidestepped questions about the durability of the global recovery and the possibility of boosting engineered crop seed prices, and warned that the "tightening of credit in southern Europe" has hurt sales of construction, automotive and farm materials. She also warned of "higher raws (material costs) putting pressure on (profit) margins."

But Kullman also said DuPont was "well on its way" to topping projections of $1 billion in sales of (largely Chinese-made) photovoltaic (solar-electric) panels next year, rising to $2 billion in 2014. She said thecompany plans to open its planned biofuel (cellulosic ethanol) refinery in Benore, Tenn., to commercial sales in 2012.

She agreed with analyst Kevin McCarthy of Bank of America Securities that DuPont has plenty of cash ($1.7 billion free cash flow/year) that could fund acquisition, but sought to reassure investors by noting "we look to return that to our shareholders" unless DuPont finds a "compelling opportunity" in security products, farm sales, and "certain electronics segments... We're not looking to just bulk up on acquisition."

Drug sales fell as patents expired on DuPont products licensed from Merck  Net profits tripled to $1.2 billion vs a year ago, better than analysts expected. - Inquirer intern Kelly Pun provided research for this note.

Ametek sales also rose, up 13%, as profit margins rose on recovering sales volume. "Ametek made a number of investments during the Great Recession," hiring salespeople, research scientists and development engineers, "which is helping drive further market share gains, Janney Capital Markets analyst James C. Lucas told investors. He predicted the company will fund new acquisitions. Ametek results here.