DuPont de Nemours Inc (NYSE:DD) Q2 2017 Earnings Conference Call - Final Transcript
Apr 25, 2017 • 08:00 am ET
Welcome to the DuPont Second Quarter 2017 Conference Call. My name is John, and I will be your operator for today's call. [Operator Instructions]
And I will now turn the call over to Greg Friedman, Vice President of Investor Relations. Greg, you may begin.
Thank you, John. Good morning, everyone, and welcome. Thank you for joining us for our discussion of DuPont's second quarter and first half 2017 performance. Herewith me are Ed Breen, Chair and CEO; Nick Fanandakis, Executive Vice President and CFO; and Jim Collins, Executive Vice President responsible for our Agriculture segment. The slides for today's presentation and corresponding segment commentary can be found on our website along with our news release.
During the course of this call, we will make forward-looking statements. I direct you to Slides 1 and 2 for our disclaimers. All statements that address expectations or projections about the future are forward-looking statements. Although they reflect our current expectations, these statements are not guarantees of future performance but involve a number of risks and assumptions. We urge you to review DuPont's SEC filings for a discussion of some of the factors that could cause actual results to differ materially.
We will also refer to non-GAAP measures. We request that you review the reconciliations to GAAP statements provided with our earnings news release and today's slides, which are posted on our website.
Our agenda today, we'll start with Ed providing his perspective on the Company's performance, then Nick will review our second quarter and first-half financial results. Third, Jim will discuss our Agriculture business. We will then take your questions.
With that introduction, it's now my pleasure to turn the call over to Ed.
Thanks, Greg, and good morning, everyone. This quarter, we continued the momentum we generated in the beginning of the year and delivered a strong second quarter. We again drove top and bottom-line growth, including volume increases across the board and strong margin growth. The gains were driven by our productive innovation pipeline as well as favorable market conditions in Electronics & Communications, Performance Materials, and Protection Solutions.
The second quarter's highlights were total sales of $7.4 billion rose 5%, which was all organic growth. Segment operating earnings increased 9%. Operating earnings per share grew 11%. We delivered volume gains in all reportable segments and segment operating margins improved about 80 basis points. Volume increases of 6% were the key growth driver to this quarter. Our focus on growth markets and new products is translating into strong results across the board. Agriculture was a large contributor to the volume gains, which Jim will cover.
Electronics & Communications growth was driven by film and laminate applications in consumer electronics markets, coupled with strength in semiconductor and photovoltaics. In Protection Solutions, our volume increase primarily came from applications of Tyvek and Nomex with Tyvek active packaging as one new example. Industrial Biosciences generated volume growth largely from growth in biomaterials led by Sorona sales and apparel with bioactives up as well.
Our 11% growth