Unit 5 Assignment:Economic Indicators GB540-N02:Economics for Global Decision Makers Kaplan University Professor Terrell Glenda Prater Dec.01,2013

DuPont Industries

Economic domestic indicators for DuPont Industries include employment situations, employment costs, productivity costs, product price index, consumer confidence, consumer price index, and ecomonic indicators which include attributes of indicators such as procylical, countercyclical and acyclic as well as timing and frequency of data. At DuPont Industries a workshop teaches paricipants to use leading and lagging indicators to measure and improve process efficiency and performance. The objective of this workshop is to help participants understand the role process safety metrics and indicators play in helping organizations continously improve their management of process risks. Participants will learn how world class organizations use safety metrics, including leading and lagging indicators in their journey towards excellence. DuPont has eleven best practice workshops available and is designed to introduce participants to DuPont’s best practices and describe how their participanting can help the organization prevent process related injuries and incidents. DuPont has been implementing Process Safety Management and Operational Risk Management concepts in their facilities and at sites worldwide for over 30 years. The productive costs of DuPont Industries is as follows as of 2012: Energy- 2.4% reduction in non-renewable energy intensity since 2010. DuPont has also avoided over $6 billion in energy expenditures from 1990-2010 while growing the company by 40%. Science will play a pivotal role in addressing the challenge of finding cost effective sustainable energy. Collaboration and innovation can allow us to address real world energy demands where and when they arise. Market facing- $82.3 million invested in R&D for products that reduce environmental impacts. 1207 new products or services that make people safer. Market- facing $1.9 billion in from products that reduce greenhouse gas emissions. $10 billion in revenue from products based on non-depletable resources. Footprint is 8% reduction greenhouse gas emissions, 9% reduction water consumption overall, 3% reduction water consumption in scarce and stressed areas, 78% U.S. vehicles using leading technology, 56% reduction in air carcinogen emissions and 86% ISO14001 certified sites. Looking into the future, DuPont recognizes that there are more areas in need to consider, including reducing the water footprint of agriculture and questions about the role of biotechnology in improving food security. Their solutions is to work toward designing to provide availability, access, quality, safety and affordability of food for all.

In energy, DuPont recognizes that by 2050, the amount of energy used today willneed doubling or even tripling. DuPont believes science will play a role in the challenge of finding cost effective sustainable energy and increased energy efficiency. The current work includes making lighter and more energy efficient vehicles, managing energy consumption in our facilities and investing in alternative energy sources. Through these efforts reducing our non-renewable energy use and investing investing in energy efficient products and solutions for our customers. Key players in energy are the policymakers, the private sector, academic and advocacy organizations must also be realized. Protecting people and keeping the environment safe from harm is a big challenge to society in the 21st century. At DuPont, they are confident they can meet the challenges because safety is one of their core values and is deeply embedded in everythingh they do. Through their products and services they help businesses create a vision for transforming their own work cultures and help them reach their goals and is always looking ahead finding new ways to apply science and provide better protective products and strategies. As their consulting services and technology delivers business, DuPont Sustainable Solutions provides expertise proven methodologies and training to empower clients in many market sectors to improve employee, contractor and process safety, reduces incidents and enhance operational performance. Their drive toward market driven science and innovation saves lives and optimizes sustainable business operations. Together all the work can help meet the protection challenges we will all face now and will continue to face in the future.
DuPont’s goal for 2020 in energy is to reduce non-renewable energy use by 10% per price adjusted dollar revenue by 2020 compared to a baseline of 2010. They have set a milestone of 3% reduction by 2015. DuPont’s goal for environmental research and development investment is to double investment to $640 million in R&D programs with direct, quantifiable environmental benefits for our customers and consumers by the year 2015. Progress increased investment to $823 million in 2011. New products goal is to introduce at least 1,000 new products or services that help make people safer everywhere. The goal of 2015 market facing goals capture safety, environment, energy,, and climate challenges facing markets and respond with new products and services to help meet our customers’ needs and expectations for more sustainable offerings. Increase annual revenue by at least $2 billion from products that create energy effeciency and/or significantly reduce greenhouse gas emissions. DuPont’s estimates these products will contribute at least 40 million tons of additional carbon dioxide, equivalent reduction by their customers and consumers. Revenues from products based on non-depletable resources nearly doubled revenue non-depletable resources to at $8 billion and progress increased revenue to $10 billion in 2011. Footprint goals of 2015 is since 1990, DuPont has reduced greenhouse gas emissions measured as carbon dioxide equivalent by 72% farther reduced at least 15% from base year. Water consumption goals is to reduce water consumption by at least 30% of global sites that are located where the renewable fresh water supply is either scarce or stressed as determined by the United Nations analysis of river business worldwide. For all other sites, water consumption should be held flat on a basis through the year offsetting any increased demand from production volume growth through conservation, reuse and recycle practices. DuPont’s business segments include agriculture, electronics and communications, industrial bioscience, nutrition and health, performance chemicals and coatings, performance materials, safety and protection. DuPont has 9500 scientists and engineers and more than 150 science and technology centers worldwide with 86% of R&D spend targeting food,energy and protection in 2011. DuPont’s core values is safety and health, environmental stewardship, highest ethical behavior and respect for people. DuPont was named #1 Innovator in their sector by the Patent Board in 2011 with a record breaking year with the most patents in the company’s history and they own 35,000 worldwide patents and more than 14,000 worldwide patent applications. DuPont is one of the first companies to publicly establish environmental goals and has maintained a 100% ranking on the Human Rights Campaign annual Corporate Equality Index. DuPont Industries is always looking at the costs indicator and the good market timing indicators. When a stock price moves on high volume then that means that the change is a significant one. When DuPont estimates the value of a particular investment, valuation ratios provide a good basis for assessing the value of an individual stock. Price/earnings ratio provides a measure of relative value of a stock. DuPont has a P/E ratio of 52.0, high compared to the industry average of 14.43. A company with a high P/E ratio will eventually have to live up to the high rating by increasing its earnings or the price will need to drop. A high or low ratio is neither good or bad in itself but the company trading with a high ratio must continue to post strong financial performance or its stock price will fall . DuPont will let that happen. DuPont uses tools like valuation ratios and profit margins and by paying attention to the previous ratios will help them adjust their strategies. DuPont will also take into consideration the historical data and competitor performances as well. DuPont is proud to build on their hertiage by partnering with others to tackle the unprecedented challenges in food, energy, protection now facing our world. For over 200 years, DuPont has brought world class science and engineering to the marketplace through innovative products, materials and services. DuPont’s market driven innovation introduces thousands of new products and patent applications every year serving markets as diverse as agriculture, nutrition, electronics, communications, home, construction, apparell and transportation. DuPont is using careful planning and execution of resource exp[enditures, the pharmaceutical and biotechnology industries and they continue to spend untold millions of dollars to compensate for the shortcomings of materials of construction currently used in the production of their new products. DuPont is always looking and working on new ways to produce quality and efficient products for their customers. DuPont says that an economic crisis will bring changes to their industry . DuPont must operate more cautiously, keep inventory at levels only sufficient to satisfy customer requirements, scrutize all caital expenditures and avoid investment in new capacity without some certainty of a reasonable return. In the long term, DuPont must be able to emerge from the recession leaner, more in tune with customer needs and better able to satisfy demand with just-in-time supply. Dupont is also studying a variety of macroeconomic indicators and leading cyclical indices that can anticipate inflection points in the business cycle, including spending on infrastructure projects resulting from stimulus packages from many governments around the world. DuPont’s goal is to develop and maximize effeciency throughout all their products whether it be energy, agriculture, health,, safety, protection or the environment. DuPont is the biggest U.S. chemical maker by market value, had third quarter profits that beat analysts’ etimates on higher sales volumes at units that make materials for solar panels and bullet resistant vests. Earnings rose 16% at the safety and protection division, where the US military demand helped sales. There is stability in photovoltics which wa unstable for DuPont in the past. Installations by the solar industry has increased 10% this year just by DuPont’s newer products. DuPont is moving with urgency to complete its review of the unit it considers a wide range of options and their impact on cash flows, dividends, debt levels, pension and taxes. The business continues to recover with sales volumes rising 25% over the third consecutive quarter.. DuPont’s goal is to be the world’s most successful energy and chemistry based company and dedicated to creating high quality, innovative materials that make people’s lives better and easier. DuPont’s goals can only be achieved through outstanding, committed, creative people. They will have an environment that creates spirit, energy and a commitment to win, an environment in which our capable and diversed workforce sees personal growth and success being directed related to the success of DuPont. Goals and strategies may change but their values will remain constant and unite all of their business and foundation of their efforts to provide value to DuPont’s stakeholders, shareholders, customers, employees and society. DuPont has a long history of discovery and innovation and will create through science and technology making a difference in people’s lives today and in the future. DuPont is committed to safety and environmental stewardship and enhancing the quality of their employees and the communities in which they operate. Another goal is zero injuries, illnesses,incidents waste and emissions.. DuPont remains dedicated to the enduring values of intregity, high ethical standards and treating people fairly and with respect.

References

www.bls.gov/bls/newsrels.htm

www.dupont.com

www.economicindicators.gov/z

economics.about.com/cs/business.cycles/a/economic_ind.htm

McConnell,Brue&Flynn(2012)Economics19thEd.NewYork,NY:McGraw-Hill Irwin