At duPont, many chemicals are specialty items with well-known brand names, such as Stainmaster carpets. That means the products provide operating profit margins of 30 to 50 percent, far more than commodity chemicals earn. Yet even brand names haven't been enough to offset declines in product prices worldwide in recent years, as markets for all manufactured goods have become global auctions. Company using Net to cut costs It is using the Internet to cut costs. DuPont and Dow Chemical, Celanese, Germany's BASF and other chemical firms are forming an Internet site to purchase chemical ingredients at the lowest prices.
Investors are enthusiastic because the time is ripe for chemical prices to strengthen.
Economies in Asia, Europe and Latin America are enjoying the fastest growth in years. Thus Dow, Union Carbide, BASF, Bayer and other global chemical companies are enjoying favor in the stock market. It is applying techniques learned from working with Hewlett Packard on inkjet printers to spray paint for cars, a major duPont business. It is working to adapt the techniques to printing textiles. DuPont is reforming from within.