Good morning. My name is John, and I will be your conference operator today. At this time, I would like to welcome everyone to the DuPont 2010 Third Quarter Investor Call. [Operator Instructions] It is now my pleasure to turn the floor over to your host, Karen Fletcher, Vice President of Investor Relations. Karen, you may begin your conference.

Thank you, John. Good morning, and welcome. With me this morning are Ellen Kullman, Chair and CEO; and Nick Fanandakis, CFO. The slides for today's call can be found on our website at dupont.com, along with the news release that was issued earlier today. Please turn to Slide 1. During the course of this conference call, we will make forward-looking statements. 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 and request that you please refer to the reconciliations to GAAP statements provided with our earnings news release and on our website. And finally, we've posted supplemental information on our website that we hope is helpful to your understanding of our company's performance. Now it's my pleasure to turn the call over to Ellen Kullman.

Thanks, Karen, and good morning, everyone. Once again, I'm very pleased with what our team has accomplished, to help frame a strong underlying performance in the quarter, look at the segment results, excluding Pharmaceutical royalty income. On that basis, segment pretax operating income went from $491 million to $652 million, an increase of 33%. Driving these results with the same priorities I've shared with you before our playbook working and the disciplined execution of our business plans is paying dividends in more ways than one. Our consistent focus on market-driven product innovation, pricing discipline, emerging markets and ongoing productivity are delivering very strong results. Slide 2 recaps DuPont's 2010 directives. I shared these directives with you last quarter and I used them consistently when talking with employees around the world. Business-specific goals are drawn from these corporate targets and ultimately, every employee recognizes and is rewarded for what they do to react to changing markets or customer demands and how they contribute to the overall success of the company. While our directives are clear and our managing processes are sound, we must contend with dynamic market and competitive situations, so let me share some perspectives on key markets this quarter. I'll start with once related to Safety & Protection. We expected industrial market to continue to strengthen resulting in a rebound in mid-cycle businesses. This certainly played out during the quarter. Nomex sales were up more than 80% with growth driven by infrastructure spending and increase protection of workers, particularly in transportation, oil and gas, power generation and distribution. Mid-cycle businesses are indeed starting to rebound and we're ready. We're also working on new applications for our finer denier Kevlar offering in anticipation of Cooper River plant expansion. One example is Kevlar XP, which offers lighter weight, more comfort and…

Thank you, Ellen, and good morning, everyone. I'm pleased to report that in the third quarter, DuPont continued to deliver very strong results. As the global economy recovers, we drove volume and price up in all regions of the world. This quarter's performance continues to build on the strong foundation we have laid since recovery began. 2010 has been and will continue to be a typical year for the company, as we replaced Pharmaceutical royalties with profitable growth from all other business units. By any measure, the third quarter was strong with every business and region contributing to the success in the quarter. Now I'd like to review the details of the quarter, pointing out some of the accomplishments versus goals. And we'll start with Slide 3, which is a summary of earnings per share and sales results. Earnings per share were $0.40 compared to $0.45 in the prior year. However, it's important to note that when you exclude Pharmaceuticals, underlying segment pretax earnings were up 33%. Consolidated net sales of $7 billion were up 17% versus the prior year, comprised of 14% volume gains, 5% positive local price, 1% negative currency impact and 1% reduction from portfolio changes. Volume was up in all business segments and in all regions of the world. Local currency prices were also up in all regions, reflecting our continued strong pricing discipline. Let's turn to the segment reviews and begin with Ag & Nutrition on Slide 4. You see third quarter sales grew 2% to $1.3 billion, as Latin America and Asia-Pacific increases were somewhat muted by the impact of Crop Protection-divested businesses. This seasonal pretax earnings loss of $181 million reflects increased sales offset by growth investment and divested businesses impact. Year-to-date, Ag & Nutrition segment delivered sales growth of 9% and improved…

Great. Thanks, Nick. The outlook of about $3.10 earnings per share, excluding items is our best estimate of how we'll end this year. It's not meant to project pinpoint accuracy, but rather give you our collective view of the most likely market scenarios, productivity results, customer actions, particularly with respect to inventory management as we approach year end. We're in the midst of our 2011 execution reviews with each of our business units. We will share the business plans and targets at our Investor Event on December 9. In the meantime, I want to reemphasize that you should continue to expect DuPont to demonstrate the same focus and concentration on executing our playbook that we've done year-to-date. I want to particularly highlight three important things you can expect us to deliver: first, you should expect us to leverage and build upon our advantages in science and technology. This means introducing new products that raise the bar of performance and are recognized and valued by our customers. Our R&D investments are biased towards the megatrends and you should expect those investments to pay off with above trend-line growth and profitability in these areas. We also exploit technology in our operations, particularly where we can reduce cost for debottleneck processes to keep up with growing markets. Second, you should expect us to leverage and build upon our global footprint in a way that consistently starts with the customer. We intend to capitalize on our strength in developed markets, where we have a strong and long-term customer partnerships and understand what it takes to win in these markets. We will continue to establish critical partnerships to solve complex problems related to the megatrends, whether it's increasing a farmer's yield or helping an automaker improve the efficiency of a new vehicle. In addition, on constantly challenging our teams to be more responsive to local markets, particularly in the developing world. We continue to invest in our sales force, R&D centers and application laboratories in critical growth markets around the world. And finally, you should expect us to anticipate changes in our markets and competitive situations and respond by adjusting the levers we can control. We demonstrated that over the past couple of years in recessionary, recovery and high-growth environment. For example, we accelerated productivity programs and were more judicious with CapEx spend as markets turned down. On the other hand, we've added incremental capacity in invested resources to support growing markets. We will continue to stay close to customers and respond to changing needs in an agile and innovative manner. And finally, my personal commitment to you is that we will provide updates and prove points along the way, so you can measure progress towards our stated business and financial targets. Karen, back to you.

Okay. Thanks, Ellen. John, let's open the line up for questions.

[Operator Instructions] And our first question comes from David Begleiter from Deutsche Bank.

Ellen, can you comment on TiO2, just how tight is the market? What was your pricing up year-over-year and why you expect pricing to rise in Q4 and 2011?

TiO2 continues to perform very well in the marketplace that high-quality pigment and penetration that we've had in Asia-Pacific has produced the strong results you see. It is very tight market. And that tight market, given that it is a commodity chemical, does influence price and allow price to move. That is a very competitive environment, and so the exact amount will depend on exactly the actions of our competitors. But I do think there's positive momentum there and that you can see those results coming through the end of this year and into next year.

Would you expect double-digit price increases in TiO2 for next year as well?

I think that's a little hard to predict right now. I think I defer that to our December event when we're going to put 2011 in great context for you.

Our next question comes from Bob Koort from Goldman Sachs.

Just following on Dave a little bit, but when the division was almost 40% of earnings this quarter maybe it deserves closer inspection. I guess I'm a little struck by the volume record volumes in that TiO2 business given how terrible the domestic housing market is. So did you guys ship more than usual out of the U.S. or did you produce more than usual in Asia? How were you able to tap that kind of demand strength when the U.S. market still seems pretty lukewarm?

I think Bob, there were number of years we've been globalizing that business. And so although our assets tend to be along the Gulf Coast or in Tennessee, the majority of our assets plus Guanyin in Taiwan, we shipped globally out of these very efficiently. And so this has been a pattern that's been changing over the long course. It's just not been a 2010 kind of pattern. We've had great penetration into Asia-Pacific, as they've really increased their use of pigment in a wide variety of markets, especially the high-quality pigment like we produce. And so this isn't just a 2010 issue. It really is a long-term issue.

[indiscernible] Chinese project stands and then also your sourcing of raw materials, is there any chance that, that becomes an issue going forward given how tight the markets are?

Yes, so in China, there's really no update on that project. We continue to work locally with the government to obtain the business license to enable us to construct the plant. And so we continue to drive that. In terms of raws, you see some of that coming through in our results this year, this quarter with chlorine and things like that. We obviously, having the position we have in the marketplace and the relationship we have with the value chain, have strong relationships in the key raw materials that are enabler for us, and so we remain confident in that area.

Our next question comes from Mark Gulley from Soleil Securities.

I guess my first question is this. If I take a look at some of the business leading and lagging, once it tend to be lagging would include the Coatings and perhaps the Performance Materials business. Ellen, can you comment a little bit about how you think they're going to proceed as they try to catch up with the other divisions that are doing better?

Yes, so if you talk about the Coatings division, we have gotten back to pre-recession margins, so it kind of the place to start from to then continue to improve. Our volumes are below pre-recession levels, so we still have operating leverage in that business that we can take advantage of as we move forward. So that is a lagging business from that standpoint and we continue to drive productivity, continue to drive our relationships in the marketplace to be able to get that operating leverage going forward. You also mentioned Performance Materials. I don't see that as lagging. Their margins have returned now. I think their volumes are still below pre-recession levels, but with the restructuring we've done and the focus we have on operating leverage, I think those teams have really done a great job at capturing a lot of value for our company coming through this year.

Then a financial question for Nick. Can you give us any help with respect to what kind of interest expense savings you might enjoy reify you talked about in your prepared remarks?

Yes, so as you know, we announced we issued $2 billion of additional debt and we got very attractive rates averaging about 3.5%. We retired about $1.3 billion of debt early, which had rates in the greater than 5%. So on an ongoing basis from an interest expense standpoint, when you look at those two pieces, it's about flat. Interest expense will be about the same as it has been, put on $2 billion of debt versus the $1.3 billion that was in place before.

Our next question comes from Kevin McCarthy from Bank of America.

It's good to see the larger share gain estimates in corn and soybeans and pioneer. I understand the harvest is only 80%, but based on what you've seen so far, would you comment on the performance of your seeds in 2010 relative to competition, as well as implications for share trends next year?

Sure. So 80% complete are the numbers we have. Now our data collection at our customer trials is about 60% complete. So we got a lot of information, but we got more coming in and we'll share that as we get through the early part of November and obviously spend a lot of time on this in the December Investor Event. So our growers saw solid high-yielding performance, and I think that we're very pleased with what we have seen. We're on track with our strategy. We continue to lead in doubles, triples continue to line up with competition. At AcreMax 1, it's in line with our Herculex extra trials, no yield loss there and the convenience on the below-the-ground insects. And we are performing the competition there. So we're on plan with AcreMax 1 and Nick mentioned the 1 million units going into next year. So I think from a corn standpoint, we're very pleased with our progress. In soy, what we're seeing at a Y series, farmers have thrilled. This year, the value proposition is working and we're only 60% penetrated in Y series in 2010, so we got more room to go there next year. And so I think that we're very, very pleased. And Rynaxypyr, you look at the crop protection side. It's just tremendous, the gains we're getting there and really noble product, and with plain view coming in, as Nick mentioned, I think that's more opportunity for us. So I think coming through our pipeline looks good. We got good momentum coming out of '10 and going into '11 and we're on track. So we're very pleased with our results there.

Just as a quick follow-up if I may, how large was the earnings drag associated with the Nutrition and Health piece of the segment on a year-over-year basis?

Earnings, I think it's about, I don't think it's any bigger or smaller. I think it's about the same as what has been.

Our next question comes from Don Carson from Susquehanna.

Just to continue on the Ag theme, Ellen, you had some good share gains, you're number one in the soy now, you kind of tied for first in corn but you had a bit of a holiday from competition given your competitor had some pricing performance issues. So as they've cut prices aggressively, what's your outlook for share next year? And it does look like we're going to have fresh record [ph] corn acreage once again. Is there going to be a seed availability issue and is this strong planting outlook positive for your pricing realizations?

Well, Don, I respectfully say, I didn't really feel there was a holiday from competition. I think competition is very strong certainly and things come and go but I view this as a very competitive area. I think as we look out next year, I think we've got good momentum going for us. I think that the issue of availability I don't see. I see what our forecast and where we are. I think that we're very happy given what we're seeing in terms of the projections on acreage and things like that. And I think it's based on our direct-to-market view. I think we spend a lot of time with the growers, really focusing on what the value proposition is. I think there's a lot of noise out there around what competitors will and won't do. But it's our direct engagement with the customer on the total value proposition that I think is an enabler for us in this area. So I think that the time will tell, we'll certainly get into a lot more detail on this as we see the exact results that come out of all of our trials. But I think right product, right acre is working, and I think it's a differentiator for us.

Any comments on the pricing outlook, because obviously corn prices have firm considerably but your competitor also significantly cut their list prices on some of their new products? What's your expectation for pricing next year in seed?

Yes, I think that based on the value proposition and yield increases, I think pricing will be up. I think the exact nature of it is going to depend on how the whole season plays out, so we've got a lot of time to focus on that.

Our next question comes from Edward Yang from Oppenheimer. Edward Yang - Oppenheimer & Co. Inc.: Your slide on Performance Materials mentions restocking slowing and some inventory monitoring the inventory situation. We'd like to appreciate some color on that. And also maybe an accounting question for Nick, D&A was down sequentially and it was down year-over-year. What led to that? And are you still on track to spend about $1.6 billion in CapEx this year?

Let me start with the CapEx question. We have been saying original expectation was about $1.6 billion. We're going to be lower than that. We're going to be in the range of about $1.4 billion for the year. As you start to gear back up on that capital spend, that engine just takes a little bit longer, but we are now at that kind of rate. But I expect this year to be about $200 million less than I originally forecasted. As for the D&A, really is around asset sales that occurred in small divestitures and the purchase accounting relating to that. And your first question, Ed, was around what again? Edward Yang - Oppenheimer & Co. Inc.: Just a moment, I'll reopen...

Nick, I think his question was around some comments about restocking for Performance Materials and if you could give some color on that.

Yes, I think if you look at Performance Materials and you got to look at their position in the supply chain and where they service industries such as the Automotive segment, and really, we don't see the level of holiday time that was originally projected, so we continue to see some volume increases in that regard. But as we said, we're not going to have the same level of year-over-year increase in Automotive that we saw in quarter three, which was significantly up versus what we're going to see in quarter four, 8% year-over-year for global in quarter three and about down 1% in quarter four.

Our next question comes from P.J. Juvekar from Citi.

Good question as an overall company. You mentioned that you're still benefiting from some inventory builds in end markets. Where do you think inventories are in different end markets? Can you just give us a flavor whether we're coming through the end of it or you're going to see auto declines of up 1% or auto build declines of 1% in 4Q? Just give us some flavor about where do you see inventories in end market?

So in the comment on inventory builds, it's been stance but it's been there, especially in places like Performance Materials where they are third tier, so the funnel has to be filled. We don't see it as much for instance in Coatings, which is first tier and direct with the automotive maker. We believe people are going to be conservative with inventories coming through the end of the year. At the end of the day for all of us, cash still remains to be a focus area, and we think that the people are going to be cautious and are going to make decisions right for them. So we're not anticipating an increase in inventories. As a matter of fact, we're anticipating the people will be very moderating with them as they exit the year.

Our next question comes from Laurence Alexander from Jefferies. Lucy Watson - Jefferies & Co.: This is Lucy Watson on for Laurence this morning. I guess going back to Rynaxypyr, with your expectation of sales exceeding $300 million this year, does that reset the bar or should we consider 2010 as a peak year?

No, I'd suggest I have that conversation with the president of that unit, and that's just great, great performance by our guys. And I think the bar is going to get reset there as we go through these execution reviews in the next couple of weeks.

Our next question comes from Mark Connelly from CLSA.

When I look at photovoltaics, the performance obviously has been excellent. As we see all the new polysilicon capacity coming online in the next couple of years, do you worry about the impact on the module market if we start to see inflation in the underlying raw materials?

I think that cost have come down with capacity increases in the module market. I think we've seen that in the last year. I think that's been an enabler as some of the movement in feed and tariffs and things like that in different countries to enable there still to be a value proposition for the installation of these. We're focused on innovation on our materials that go into these markets to provide higher efficiency and to really help them create the payback and the return on the modules. There are still a way to go there but we see constantly company is reaching out to us, engaging around the efficiency equation and how to create more in that space. So I still think there's a way to go there.

We have a question from Frank Mitsch from BB&T Capital Markets. Frank Mitsch - BB&T Capital Markets: Ellen, you were talking during the discussion about the fourth quarter progressing in a more moderate pace. Now your volumes were up 21% in the second quarter, up 14% in the third quarter, obviously, 14% is still extremely strong. Are you just looking at the pace of business moderating in terms of being more difficult comps, or do you believe that the absolute level of business absent seasonality has been moderating as well?

I think it's the comps and I think it's the seasonality. And I think that that's what we have to take into account as we look at the fourth quarter.

Our next question comes from Jeff Zekauskas from JPMorgan. Jeffrey Zekauskas - JP Morgan Chase & Co: Maybe this is a question for Nick. Your SG&A expense had been running up about $100 million per quarter for the first two quarters. And in this quarter, it was basically flat or up $10 million. Why was that? What was the change in this quarter relative to the previous quarters? And can you also say what the change in your raw materials was sequentially?

So when you look at SG&A, let me take a step back. When we look at how we're going to spend our investment dollars, whether that be R&D, sales and marketing, et cetera, we have a rigorous process we go through around portfolio of initiatives. And we went through that and decided there were going to be certain strategic areas that we were going to focus on in sales and marketing initiatives. And a lot of that work was done in that first half of the year. Areas such as in Pioneer, for example. And so that's what you're seeing there, Jeff. As far as the second part on raw material costs, sorry. When you look at the raw material costs, keep in mind a couple of things, Jeff. Keep in mind, first, that we're looking and comparing this against an all-time low point in the third quarter of 2009. When you look at the first half, we said we are about 1% increase year-over-year. We're seeing 5% to 6% for the full year increased. So what you're seeing here is with the productivity work that we've been doing around our working capital, some of these price increases are coming through, are getting through our inventory much quicker and getting to the earnings at a faster, faster rate as a result of that working capital productivity and the growth that we're seeing. Fourth quarter, we're seeing somewhere around similar year-over-year sort of increases and probably slightly less. But as I say for the full year, it'll be 5% to 6% year-over-year increase in raws.

This concludes the Q&A portion of the conference call. I will now turn the call back over to Ms. Kullman for closing remarks.

Great. Thank you. And I want to close with a comment I made last quarter, and that comment was that we will continue to earn your expect and confidence with each quarter. Today's results reflect strong market positions, robust R&D pipelines, ongoing productivity and disciplined execution. And now our focus is on the fourth quarter and equally as important, position our businesses for continuing success in 2011. So I look forward to seeing many of you at our Investor Event on December 9 in Wilmington. You'll hear from the top leaders of the company, including the presidents of our 13 businesses, and we'll share details of our 2011 plans, as well as expectations for long-term growth and profitability. So thank you all for joining us on today's call, and I look forward to talking to you soon.

This concludes today's DuPont 2010 Third Quarter Investor Call. You may now disconnect your lines at this time, and have a wonderful day.