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Home  > Markets & companies  > Coatings market  > DuPont grants auto-paint business a ‘grace...

Tuesday, 17 September 2019
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Markets & companies, Coatings market

DuPont grants auto-paint business a ‘grace period’

Thursday, 15 December 2011

DuPont will give its auto-paints unit the opportunity to meet financial targets. However, the business is the part of the company with the worst outlook.

The value of DuPont’s auto-paints business is valued at USD 4 billion, according to industry insiders. Source: DuPont

The value of DuPont’s auto-paints business is valued at USD 4 billion, according to industry insiders. Source: DuPont

DuPont Chief Executive Officer Ellen Kullman said the company will give its auto-paints unit the opportunity to meet financial targets before considering its options for the business. "From a performance standpoint, we’ll give them a chance to see if they can get there,” Kullman said in a meeting with reporters following an investor presentation at DuPont’s headquarters in Wilmington, USA. "If any of our businesses can’t obtain their targets, obviously we’ll look at alternatives, whatever that means.” The company is exploring a sale of the auto-paint division that may fetch as much as USD 4 billion, industry insiders said. The company hired Credit Suisse Group AG to seek buyers for the unit, these insiders said. The bank has yet to begin an auction process, according to the insiders. The performance coatings segment of DuPont is one of the world’s biggest maker of automotive paint. It is also the part of the company with the worst outlook, according to forecasts published earlier by the company. The unit’s sales will rise 3 to 5 % a year in the long term with profit margins expanding from 7 % in 2011 to as much as 12 %, DuPont said.

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