CHEMICAL giant DuPont Co has reported flat second-quarter earnings compared to a year ago, as higher sales were offset by higher energy costs and accelerated biotech research.

International sales growth and higher local selling prices helped offset the impact of continuing weakness in the housing and automotive markets, and DuPont reaffirmed its outlook for the full year. Net income slipped to US$972 million from US$975 million a year ago, with earnings per share flat at US$1.04.

Sales grew six percent to US$7.88 billion from US$7.44 billion a year earlier, helped by higher local prices, the weak dollar, international volume growth and higher pharmaceutical income, Bloomberg News said. The company said these gains were partially offset by higher ingredient costs and increased cost investments, mainly to accelerate biotech research and development, expand global sales coverage in seeds, and increase production capacity in Kevlar and Nomex and select China facilities.

Analysts surveyed by Thomson Financial were looking for profits of US$1.06 per share. Revenue topped Wall Street's US$7.86 billion consensus estimate. Looking ahead, DuPont reaffirmed its full-year earnings outlook of about US$3.15 per share, excluding one-off items. For the second half of 2007, the company expects to benefit from continued growth outside the United States and higher local selling prices. Analysts currently forecast slightly higher full-year profit of US$3.18 per share.