DuPont has dumped BASF, Dow Chemical, and PPG Industries from its peer group, according to its 2008 10-K report filed yesterday (just two days before Valentine’s Day in the U.S.). DuPont’s self-selected peer group, according to the report, has been revamped to include “more research-intensive companies with a scientific focus, versus commodity-based chemical companies.” Ouch!
The 10-K, an annual report to investors mandated by U.S. securities law, provides a comprehensive disclosure of the company's business and financial condition and includes audited financial statements. The peer group provides a way for the companies and investors to benchmark stock and financial performance, compensation, and other metrics.
DuPont's peer list for the 2008 report has expanded to 20, from 12 in 2007, but the company still couldn't find room for industry stalwarts such as BASF, Dow, and PPG. 3M, Monsanto, and Rohm and Haas remain in DuPont's circle of peers, however. New peers include Air Products and Honeywell, and its other new, more 'research-intensive' peers include companies such as Abbott, Boeing, Caterpillar, Emerson Electric, P&G, and J&J.
So, Jürgen, Andrew, and Chuck if those Valentines from DuPont don't arrive this year, she's just not that into you anymore.
DuPont's Performance Versus Peers
The peer group companies for the year ended December 31, 2008 are 3M Company; Abbott Laboratories; Air Products & Chemicals, Inc.; Baxter International Inc.; The Boeing Company; Caterpillar Inc.; Eastman Kodak Company; Emerson Electric Co.; Hewlett-Packard Company; Honeywell International Inc.; Ingersoll-Rand Company Limited; Johnson & Johnson; Johnson Controls, Inc.; Kimberly-Clark Corporation; Merck & Company, Inc.; Monsanto Company; Motorola Inc.; The Procter & Gamble Company; Rohm and Haas Company; and United Technologies Corporation.
For comparison, the company’s old peer group companies were 3M Company, Alcoa Inc.; BASF Corporation; The Dow Chemical Company; Eastman Kodak Company; Ford Motor Company; General Electric Company; Hewlett-Packard Company; Monsanto Company; Motorola, Inc.; PPG Industries, Inc.; Rohm and Haas Company; and United Technologies Corporation.