-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Eik1SrxfEUzDJzPX/fKWKjDbjPbYwTEYXKHDuXA07J439xWDZsY4yq3ODMKywPDh eDqqDicMuAiLQVqtwUD0bg== 0000030554-97-000002.txt : 19970130 0000030554-97-000002.hdr.sgml : 19970130 ACCESSION NUMBER: 0000030554-97-000002 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19970129 ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 19970129 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: DUPONT E I DE NEMOURS & CO CENTRAL INDEX KEY: 0000030554 STANDARD INDUSTRIAL CLASSIFICATION: PLASTIC MAIL, SYNTH RESIN/RUBBER, CELLULOS (NO GLASS) [2820] IRS NUMBER: 510014090 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-00815 FILM NUMBER: 97512894 BUSINESS ADDRESS: STREET 1: 1007 MARKET ST CITY: WILMINGTON STATE: DE ZIP: 19898 BUSINESS PHONE: 3027741000 8-K 1 CURRENT REPORT SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report (Date of Earliest Event Reported) January 29, 1997 E. I. du Pont de Nemours and Company (Exact Name of Registrant as Specified in Its Charter) Delaware 1-815 51-0014090 (State or Other Jurisdiction (Commission (I.R.S Employer of Incorporation) File Number) Identification No.) 1007 Market Street Wilmington, Delaware 19898 (Address of principal executive offices) Registrant's telephone number, including area code: (302) 774-1000 1 Item 7. Financial Statements and Exhibits --------------------------------- In connection with Debt and/or Equity Securities that may be offered on a delayed or continuous basis under Registration Statements on Form S-3 (No. 33-53327, No. 33-61339 and No. 33-60069), we hereby file the following press release. Exhibit Number Description of Exhibit ------- ------------------------------------------------- 99 Copy of the Registrant's Earnings Press Release, dated January 29, 1997 2 SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. E. I. DU PONT DE NEMOURS AND COMPANY (Registrant) /s/D. B. Smith ------------------------------------ D. B. Smith Assistant Controller January 29, 1997 3 EXHIBIT INDEX Exhibit Number Description of Exhibits - ------- ------------------------------------------------------------ 99 Copy of the Registrant's Earnings Press Release, dated January 29, 1997. 4 EXHIBIT 99 Contact: Susan Gaffney (302) 774-2698 Wilmington, Del., Jan. 29 -- DuPont reported record fourth quarter and full-year 1996 earnings per share citing excellent performance by upstream petroleum and strong Chemicals and Specialties volumes in the second half of the year. Fourth quarter 1996 earnings per share of $1.52 were $.39 higher than the fourth quarter 1995, marking the 11th consecutive quarter of record earnings for comparable quarters. Excluding 1995 nonrecurring charges of $.15 per share, earnings for the current quarter were up 19 percent from $1.28 per share earned in the fourth quarter 1995. Full year earnings were $6.47 per share compared to $5.61 per share in 1995. Excluding nonrecurring items from both years, 1996 earnings were $6.65 per share, up 14 percent from $5.81 per share in 1995. "This was another strong year for DuPont and the third consecutive year of record earnings. Upstream petroleum results increased 46 percent to $706 million and were a major con- tributor to our earnings growth," said John A. Krol, DuPont President and CEO. "In addition, we have taken a number of significant steps toward strengthening and positioning our busi- ness portfolio for profitable growth. DuPont employees are enthusiastic and committed to building our company." 5 Krol also stated that the company has regained finan- cial flexibility by essentially completing repayment of the $8 billion of debt incurred in 1995 to redeem shares from Seagram and by repurchasing for $500 million the 156 million warrants issued to Seagram. Sales for the fourth quarter were $11.4 billion, up 10 percent from the prior year. This reflects a 26 percent increase in Petroleum sales, principally from higher crude oil and natural gas prices, and a 2 percent decrease in Chemicals and Specialties sales. Chemicals and Specialties sales were up 6 percent after adjusting for changes in business composition resulting from the divestiture of medical products businesses and forming the DuPont Dow Elastomers joint venture. Worldwide volume increased 10 percent reflecting 10 percent growth both inside and outside of the United States. These gains were partly offset by lower worldwide selling prices that averaged 4 percent below the fourth quarter 1995. Net income for the fourth quarter was $858 million, compared to $627 million earned in 1995. Excluding 1995 nonrecurring items, net income was up 21 percent. Petroleum segment full year sales were $20.2 billion, up 14 percent over last year. Crude oil prices averaged $20.11 per barrel for the period, 21 percent higher than last year. U.S. natural gas prices were 32 percent higher averaging $1.90 per thousand cubic feet, while worldwide gas prices increased 6 19 percent to $2.21 per thousand cubic feet. Crude oil production and natural gas deliveries increased 6 percent and 5 percent, respectively. Chemicals and Specialties sales for 1996 were $23.6 billion, down 4 percent, reflecting sales reductions from changes in business composition. Excluding the effect of these changes on reported sales, Chemicals and Specialties sales were up 2 percent versus 1995, reflecting 3 percent higher sales volume, partly offset by 1 percent lower average selling prices. U.S. prices were flat, while prices outside the United States averaged 3 percent lower, largely attributable to a stronger U.S. dollar. Outside the United States volume improved 4 percent, principally from growth in the Asia Pacific region. U.S. sales volume was up almost 3 percent. Total company sales for the year were $43.8 billion, up 4 percent from last year. Net income was $3.6 billion, up 10 percent from $3.3 billion earned in 1995. The following commentary compares results for the full year 1996 with 1995 for each industry segment, after adjusting sales for changes in business composition and excluding the earnings impact of nonrecurring items. Effective with the fourth quarter 1996, what was formerly the Diversified Busi- nesses segment has been split into two segments -- (1) a new "Life Sciences" segment comprised of the agricultural products and pharmaceuticals businesses, and (2) a Diversified Businesses 7 segment consisting of the remaining businesses which include films, photopolymers and electronic materials, coal, and printing and publishing. This change has been made to recognize the increasing importance of the earnings contribution of Life Sciences and to focus more attention on a business segment that will be a key growth area in the future. Petroleum segment earnings were $901 million, up $237 million or 36 percent, and the second highest in Conoco's history. Upstream earnings were a record $706 million, up 46 percent, attributable to stronger worldwide crude oil and U.S. natural gas prices as well as increased oil and gas volumes outside the United States. Exploration expenses increased $73 million, or 22 percent, from the prior year. Downstream earnings of $195 million were up $13 million, or 7 percent, reflecting gradually improving margins. U.S. downstream earnings of $107 million improved 24 percent while downstream earnings outside the United States were $88 million compared to $96 million in 1995. Costs associated with major refinery start-ups, facility shutdowns and refinery turnarounds reduced improvement in the second half of the year. Chemicals segment earnings were $584 million, down 9 percent from the $641 million earned last year, principally reflecting lower earnings from white pigments, partly offset by higher earnings from chemical intermediates. Segment results were also negatively affected by investment write-offs in the 8 fourth quarter. Segment sales of $4.1 billion were 1 percent lower, reflecting 4 percent higher sales volume more than offset by 5 percent lower prices. Fibers segment earnings of $834 million were 8 percent above the $774 million earned in 1995. This is principally attributable to improved results for "Lycra" spandex, nonwovens and "Dacron" polyester. Sales of $7.2 billion were flat as average selling prices and sales volumes were essentially unchanged versus 1995. Earnings for the Polymers segment were $854 million, down 1 percent from $864 million in 1995. Increased earnings from automotive products, engineering polymers, and "Corian" were offset by a reduction in elastomers earnings due to formation of the DuPont Dow Elastomers joint venture. Segment sales of $6.7 billion were 4 percent above 1995, reflecting 4 percent higher volume and flat selling prices. Life Sciences segment earnings were $789 million, up 21 percent from $651 million in 1995. This reflects earnings improvement from both pharmaceuticals and agricultural products. The increase in pharmaceuticals earnings was largely due to a more favorable allocation of operating income to DuPont from the DuPont Merck Pharmaceutical joint venture. These allocations totaled $186 million after tax in 1996, compared to $111 million after tax in 1995, and are now completed in accordance with the 9 venture agreement. Segment sales were $2.5 billion, up 6 percent and reflect only the agricultural products business. Only earnings are reported for pharmaceuticals. Segment sales reflect 9 percent higher volume, partly offset by 3 percent lower prices. Diversified Businesses earnings were $157 million, down 41 percent. This is principally due to the absence of medical products earnings resulting from businesses that were divested during the year, and lower printing and publishing earnings. Partly offsetting were higher earnings from electronic materials and coal. Segment sales were $3.1 billion, up 2 percent, reflecting flat selling prices and 2 percent higher sales volume. "The double-digit Chemicals and Specialties volume growth in the fourth quarter gives us momentum moving into the new year," said Krol. "Petroleum is also well positioned given major refinery upgrades completed in 1996 and reasonably strong upstream market conditions. On balance, we expect 1997 to be another strong year." 1/29/97 10 E. I. DU PONT DE NEMOURS AND COMPANY AND CONSOLIDATED SUBSIDIARIES
Three Months Ended Year Ended CONSOLIDATED INCOME STATEMENT December 31 December 31 - ------------------------------------------------------------------------------------------------------------ (Dollars in millions, except per share) 1996 1995 1996 1995 - ------------------------------------------------------------------------------------------------------------ SALES ................................................... $11,407 $10,385 $43,810 $42,163 Other Income ............................................ 280 294 1,383 1,099 ------- ------- ------- ------- Total ............................................... 11,687 10,679 45,193 43,262 ------- ------- ------- ------- Cost of Goods Sold and Other Expenses ................... 8,553 7,930 32,618 31,066 Selling, General and Administrative Expenses ............ 750 750 2,856 2,995 Depreciation, Depletion and Amortization ................ 735 785 2,621 2,722 Exploration Expenses, Including Dry Hole Costs and Impairment of Unproved Properties ................. 169 110 404 331 Interest and Debt Expense ............................... 166 197 713 758 ------- ------- ------- ------- Total ............................................... 10,373 9,772 39,212 37,872 ------- ------- ------- ------- EARNINGS BEFORE INCOME TAXES ............................ 1,314 907 5,981 5,390 Provision for Income Taxes .............................. 456 280 2,345 2,097 ------- ------- ------- ------- NET INCOME .............................................. $ 858 $ 627 $ 3,636 $ 3,293 ======= ======= ======= ======= EARNINGS PER SHARE OF COMMON STOCK .................. $ 1.52 $ 1.13 $ 6.47 $ 5.61 ======= ======= ======= ======= DIVIDENDS PER SHARE OF COMMON STOCK ..................... $ .57 $ .52 $ 2.23 $ 2.03 ======= ======= ======= ======= Certain reclassifications of 1995 data have been made to conform to 1996 classifications. Earnings per share are calculated on the basis of the following average number of common shares outstanding: Three Months Ended Year Ended December 31 December 31 ------------------ ----------- 1996 563,042,537 560,675,296 1995 555,367,995 585,107,476
11 E. I. DU PONT DE NEMOURS AND COMPANY AND CONSOLIDATED SUBSIDIARIES
Three Months Ended Year Ended CONSOLIDATED INDUSTRY SEGMENT INFORMATION December 31 December 31 - --------------------------------------------------------------------------------------------------------------- (Dollars in millions) 1996 1995 1996 1995 - --------------------------------------------------------------------------------------------------------------- SALES - ----- Chemicals ............................................... $ 1,041 $ 1,006 $ 4,141 $ 4,181 Fibers .................................................. 1,903 1,801 7,204 7,215 Polymers ................................................ 1,628 1,716 6,699 7,037 Petroleum ............................................... 5,617 4,468 20,166 17,660 Life Sciences ........................................... 472 431 2,472 2,322 Diversified Businesses .................................. 746 963 3,128 3,748 ------- ------- ------- ------- Total ............................................... $11,407 $10,385 $43,810 $42,163 ======= ======= ======= ======= AFTER-TAX OPERATING INCOME - -------------------------- Chemicals ............................................... $ 138 $ 149 $ 563 $ 651 Fibers .................................................. 241 182 802 805 Polymers ................................................ 199 172 909 829 Petroleum ............................................... 213 79 860 619 Life Sciences ........................................... 139 121 679 588 Diversified Businesses .................................. 6 52 205 252 ------- ------- ------- ------- Total ............................................... 936 755 4,018 3,744 Interest and Other Corporate Expenses Net of Tax ................................... (78) (128) (382) (451) ------- ------- ------- ------- NET INCOME .............................................. $ 858 $ 627 $ 3,636 $ 3,293 - ---------- ======= ======= ======= ======= Effective in the first quarter of 1996, the amortization of capitalized interest associated with property, plant and equipment is included in After-Tax Operating Income versus the previous practice of including such amortization in Interest and Other Corporate Expenses Net of Tax. Prior period data have been reclassified for comparative purposes. This change has no effect on Net Income. 1995 includes, from the third quarter, a charge of $24 for printing and publishing operations, principally for employee separation costs in Europe, a litigation provision of $13 related to a previously sold business, and adjustments in estimates associated with the third quarter 1993 restructuring charge, which result in the following net (charges)/benefits: Chemicals $ 3 Fibers 4 Polymers 3 Diversified Businesses (12) ---- $ (2) ----
12 [FN] The Chemicals and Fibers segments include a charge of $21 and $32, respectively, principally for employee separation costs in the United States. The Chemicals and Fibers segments also include a benefit of $7 and $27, respectively, principally an adjustment of estimates associated with the third quarter 1993 restructuring charge. Includes a charge of $38 for costs to settle certain plumbing systems litigation. Includes a gain of $55 associated with the formation of the DuPont Dow Elastomers joint venture. Includes a charge of $45 for write-down of certain North American and European assets. Includes charges of $63 for write-down of investment in a European natural gas marketing joint venture, and $22, principally, for employee separation costs in the United States, partly offset by a net benefit of $44 related to environmental insurance recoveries. Includes a charge of $110 and $63 associated with "Benlate" 50 DF fungicide recall for the year ended December 31, 1996 and 1995, respectively. Includes gains of $41 from the sale of certain medical products businesses and $33 related to sale of stock received in connection with the previously sold connector systems business, and a charge of $26, principally employee separation costs outside the United States, associated with the printing and publishing business. 13 E. I. DU PONT DE NEMOURS AND COMPANY AND CONSOLIDATED SUBSIDIARIES
After-Tax Operating Income -------------------------------------------------- CONSOLIDATED INDUSTRY SEGMENT INFORMATION Three Months Ended Year Ended EXCLUDING IMPACT OF NONRECURRING ITEMS December 31 December 31 - --------------------------------------------------------------------------------------------------------------- (Dollars in millions) 1996 1995 1996 1995 - --------------------------------------------------------------------------------------------------------------- Chemicals ............................................... $ 138 $ 149 $ 584 $ 641 Fibers .................................................. 241 182 834 774 Polymers ................................................ 199 210 854 864 Petroleum ............................................... 213 124 901 664 Life Sciences ........................................... 139 121 789 651 Diversified Businesses .................................. 6 52 157 264 ------ ------ ------ ------ Total ............................................... $ 936 $ 838 $4,119 $3,858 Less: Interest and Other Corporate Expenses Net of Tax ............................................ (78) (128) (382) (451) ------ ------ ------ ------ Total ............................................... $ 858 $ 710 $3,737 $3,407 ====== ====== ====== ======
14 -----END PRIVACY-ENHANCED MESSAGE-----