-----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, S7CDkbaF8JY+r0YAGvCBdaNvF9+3JRgOis+YQpgcjLVo5hWRwCDYPVW4XiVSu71h +v6Eov78MV6QfyXx7GZyVA== 0001104659-10-002926.txt : 20100126 0001104659-10-002926.hdr.sgml : 20100126 20100126153210 ACCESSION NUMBER: 0001104659-10-002926 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20100126 ITEM INFORMATION: Results of Operations and Financial Condition FILED AS OF DATE: 20100126 DATE AS OF CHANGE: 20100126 FILER: COMPANY DATA: COMPANY CONFORMED NAME: DUPONT E I DE NEMOURS & CO CENTRAL INDEX KEY: 0000030554 STANDARD INDUSTRIAL CLASSIFICATION: PLASTIC MATERIAL, 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: 10547660 BUSINESS ADDRESS: STREET 1: 1007 MARKET ST CITY: WILMINGTON STATE: DE ZIP: 19898 BUSINESS PHONE: 3027741000 MAIL ADDRESS: STREET 1: 1007 MARKET ST CITY: WILMINGTON STATE: DE ZIP: 19898 8-K 1 a10-2432_18k.htm 8-K

 

 

UNITED STATES

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 26, 2010

 

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

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

o   Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

o   Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

o   Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

o   Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 



 

Section 2 – Financial Information

 

Item 2.02

Results of Operations and Financial Condition

 

On January 26, 2010, the Registrant announced its consolidated financial results for the quarter ended December 31, 2009.  A copy of the Registrant’s earnings news release is furnished on Form 8-K.  The information contained in Item 2.02 of this report on Form 8-K shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liability of that section, and shall not be incorporated by reference into any registration statement or other document filed by the Registrant under the Securities Act of 1933, as amended, or the Exchange Act.

 

The Registrant is furnishing the earnings news release for the quarter ended December 31, 2009 as Exhibit 99.1 on Form 8-K, which has been revised to delete an extra comma which could lead to misinterpretation.  The “Outlook” section of the original earnings news release included the following statement: “[d]ue to strong pension fund performance, the company now expects pension expense to be about $.10 per share, lower than originally anticipated.”  The foregoing statement should have read: “[d]ue to strong pension fund performance, the company now expects pension expense to be about $.10 per share lower than originally anticipated.”  Exhibit 99.1 reflects this change.

 

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/ Barry J. Niziolek

 

Barry J. Niziolek

 

Vice President and Controller

 

 

January 26, 2010

 

3


EX-99.1 2 a10-2432_1ex99d1.htm EX-99.1

Exhibit 99.1

 

JANUARY 26, 2010

Media Contact:

Anthony Farina

WILMINGTON, Del.

 

302-773-4418

 

 

anthony.r.farina@usa.dupont.com

 

 

 

 

Investor Contact:

302-774-4994

 

DuPont Reports Fourth Quarter 2009 EPS of $.48; Increases 2010 Guidance

Results Reflect Improving Volumes in all Regions

 

Highlights:

 

·                  DuPont’s fourth-quarter 2009 earnings were $.48 per share, compared to a fourth-quarter 2008 loss of $.70 per share.  Excluding significant items, fourth-quarter 2009 earnings were $.44 per share versus a $.28 per share loss in the prior year (see Schedule B.)

 

·                  Sales of $6.4 billion were up 10 percent versus prior year, led by sales growth greater than 20 percent for titanium dioxide, electronic materials, performance polymers and seed products.

 

·                  Volume grew 10 percent, with increases in all regions.  Asia Pacific sales exceeded pre-recession levels with volume up 34 percent versus prior year, reflecting very strong demand in China, Japan, Korea and India.

 

·                  Raw material, energy and freight costs for the fourth-quarter were about 20 percent lower after adjusting for currency and volume.

 

·                  The company exceeded its full-year goal to deliver $1 billion of fixed cost reductions and productivity actions.

 

·                  Full-year 2009 earnings were $1.92 per share versus $2.20 in 2008.  Excluding significant items, 2009 earnings were $2.03 per share versus $2.78 in the prior year.

 

·                  Full-year free cash flow of $3.4 billion achieved the company’s goal, reflecting capital productivity and favorable currency impact.

 

·                  DuPont increased its full-year 2010 earnings guidance to a range of $2.15 to $2.45 per share.  The previous guidance was $2.10 to $2.40 per share.

 

“Across the organization, DuPont delivered on its commitments in 2009,” said DuPont Chair and CEO Ellen Kullman.  “We intend to emerge stronger in 2010 by building on the work we accomplished last year, with a focus on sales growth through market-driven innovation and operating leverage.  We remain committed to compound annual growth targets of 10 percent for top-line and 20 percent for earnings through 2012.”

 



 

Global Consolidated Sales and Net Income

 

Fourth-quarter 2009 consolidated net sales of $6.4 billion were 10 percent higher than prior year, reflecting 10 percent higher volume, 3 percent lower local prices, a 4 percent positive impact from currency exchange rates and a 1 percent reduction from portfolio changes.  The table below shows regional sales and variances versus fourth-quarter 2008.

 

(dollars in billions)

 

$

 

%
Change

 

Local
Currency
Price

 

Currency
Effect

 

Volume

 

Portfolio/
Other

 

U.S.

 

$

1.9

 

(2

)

(5

)

 

4

 

(1

)

EMEA*

 

1.8

 

6

 

(1

)

6

 

1

 

 

Asia Pacific

 

1.6

 

36

 

(3

)

5

 

34

 

 

Canada & Lat. America

 

1.1

 

12

 

(5

)

8

 

9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Consolidated Sales

 

$

6.4

 

10

 

(3

)

4

 

10

 

(1

)

 


* Europe, Middle East & Africa

 

Net income attributable to DuPont for the fourth-quarter 2009 was $441 million versus a $629 million loss in the prior year.  Net income excluding significant items was $402 million versus a $249 million loss in the prior year.  The improvement reflects significantly higher sales volume, lower variable cost and currency benefit.

 

2



 

Earnings Per Share

 

The table below shows year-over-year earnings per share (EPS) variances for the fourth-quarter.

 

EPS ANALYSIS

 

 

 

4Q

 

 

 

 

 

EPS - 2008

 

$

(.70

)

 

 

 

 

Less: Significant items (Schedule B)

 

(.42

)

EPS - 2008 Excluding significant items

 

$

(.28

)

 

 

 

 

Local prices

 

(.15

)

Variable costs*

 

.51

 

Volume

 

.30

 

Fixed costs *

 

(.08

)

Currency

 

.04

 

Tax

 

 

Exchange Gain/Loss

 

.06

 

Other**

 

.04

 

 

 

 

 

EPS – 2009 Excluding significant items

 

$

.44

 

Significant Items (see Schedule B)

 

.04

 

 

 

 

 

EPS - 2009

 

$

.48

 

 


*Excluding volume and currency impacts.

**Primarily higher equity affiliate income partly offset by a $.05 charge in Pharmaceuticals relating to the timing of rebates and other sales deductions.

 

3



 

Business Segment Performance

 

The table below shows fourth-quarter 2009 segment sales and related variances versus prior year.

 

 

 

Three Months Ended

 

Percentage Change

 

 

 

December 31, 2009

 

Due to:

 

SEGMENT SALES*
(Dollars in billions)

 

$

 

% Change

 

USD
Price

 

Volume

 

Portfolio
and Other

 

Agriculture & Nutrition

 

$

1.4

 

12

 

3

 

9

 

 

Electronics & Communications

 

0.6

 

22

 

9

 

13

 

 

Performance Chemicals

 

1.3

 

9

 

(8

)

17

 

 

Performance Coatings

 

1.0

 

8

 

10

 

(2

)

 

Performance Materials

 

1.4

 

20

 

(3

)

24

 

(1

)

Safety & Protection

 

0.8

 

(9

)

 

(9

)

 

 


* Segment sales include transfers

 

Reported pre-tax operating income (PTOI) for fourth-quarter 2009 was $798 million compared to a fourth-quarter 2008 pre-tax operating loss of $595 million.  Segment PTOI (loss) excluding significant items is shown below.

 

PRE-TAX OPERATING INCOME (LOSS) EXCLUDING SIGNIFICANT ITEMS*

 

 

 

Three Months Ended
December 31

 

 

 

 

 

 

 

$ change

 

(Dollars in millions)

 

2009

 

2008

 

vs. 2008

 

 

 

 

 

 

 

 

 

Agriculture & Nutrition

 

$

(97

)

$

(164

)

$

67

 

Electronics & Communications

 

61

 

29

 

32

 

Performance Chemicals

 

208

 

14

 

194

 

Performance Coatings

 

70

 

(81

)

151

 

Performance Materials

 

174

 

(129

)

303

 

Safety & Protection

 

135

 

87

 

48

 

Pharmaceuticals

 

247

**

265

 

(18

)

Other

 

(55

)

(81

)

26

 

 

 

 

 

 

 

 

 

Total Segments

 

$

743

 

$

(60

)

$

803

 

 


*                 See Schedules B and C for a listing of significant items and their impact by segment.

**   Includes a $63 million charge in other income relating to the timing of rebates and other sales deductions.

 

4



 

The following is a summary of business results for each of the company’s reportable segments, comparing the fourth-quarter 2009 with fourth-quarter 2008, for sales and PTOI, excluding significant items.  All references to selling price changes are on a U.S. dollar basis, including the impact of currency.

 

Agriculture & Nutrition

 

Segment sales of $1.4 billion were up $143 million or 12 percent.  Volume increased 9 percent, with increases in all regions.  Selling prices were up 3 percent.  Segment volumes reflect 25 percent higher seed volume, with a strong start to the North America and European seasons, and successful summer plantings in Argentina, Brazil, and South Africa.  Seed sales were $465 million.  Crop protection product volumes increased 5 percent, reflecting increased insecticide demand in Latin America.  Food and nutrition products sales were up slightly, reflecting increased sales in North America.  Segment PTOI seasonal loss of $97 million, improved $67 million, principally due to higher seed volumes.

 

Electronics & Communications

 

Segment sales of $582 million were up 22 percent versus fourth-quarter 2008 and 2 percent above pre-recession fourth-quarter 2007.  Sales reflect 13 percent higher volumes and 9 percent higher prices (includes metals pass-through pricing) versus fourth-quarter 2008.  Seasonal demand, growth in photovoltaics and a small amount of inventory rebuilding throughout the industry contributed to a strong quarter.  PTOI of $61 million was up $32 million primarily due to significantly improved volume and mix.

 

Performance Chemicals

 

Segment sales of $1.3 billion increased $113 million, or 9 percent.  The sales increase was led by 17 percent higher volumes, partly offset by lower prices. Volume increases primarily driven by recovery in the titanium dioxide market in all regions.  Pricing decreases mostly reflected the pass-through of lower chemicals raw material costs.  PTOI was $208 million, an improvement of $194 million.  The increase primarily reflected lower raw material costs and higher volume.

 

Performance Coatings

 

Segment sales of $975 million increased $70 million, or 8 percent, principally reflecting higher selling prices.  Volumes were 2 percent lower, reflecting continued industrial market weakness in developed regions, partly offset by higher demand in automotive OEM markets.  PTOI was $70 million, up $151 million, reflecting lower raw material costs and aggressive fixed cost reductions.

 

Performance Materials

 

Segment sales of $1.4 billion increased $242 million, or 20 percent, principally reflecting 24 percent higher volumes led by improvement in automotive, industrial, consumer and electrical markets, with strong volume recovery in all regions, particularly Asia Pacific.  Segment PTOI for the quarter was $174 million, an improvement of $303 million, reflecting strong volume and variable margin expansion as lower selling prices were more than offset by the benefits of sharply lower raw material costs.

 

Safety & Protection

 

Segment sales of $759 million decreased $75 million, or 9 percent, essentially all volume driven.  Sales into automotive and consumer markets rebounded, while industrial and law enforcement markets continued to lag.  PTOI was $135 million, an improvement of $48 million.  The increase primarily reflected lower raw material costs and fixed cost reductions, partly offset by lower volume.

 

Additional segment information is available on the DuPont Investor Center website at www.dupont.com.

 

5



 

Outlook

 

DuPont remains committed to its 20 percent compound annual earnings growth goal for the 2009-2012 time period and 2010 free cash flow target of greater than $1.5 billion as announced November 2009.  DuPont today increased its full-year 2010 earnings guidance to a range of $2.15 to $2.45 per share versus the previous guidance of $2.10 to $2.40 per share.  Due to strong pension fund performance, the company now expects pension expense to be about $.10 per share lower than originally anticipated.  In addition, the company is estimating a first-quarter $.05 per share exchange loss resulting from devaluation of the Venezuelan currency.

 

“In 2010, we will continue the momentum generated from last year’s aggressive cost-cutting and cash-generating actions,” Kullman said.  “We remain confident in our performance outlook for 2010, based on improving economic conditions coupled with well-positioned and streamlined businesses.  Each one of our business units has clear targets, our leaders understand their accountability and our teams are poised to deliver in 2010.”

 

Use of Non-GAAP Measures

 

Management believes that certain non-GAAP measurements, such as free cash flow, are meaningful to investors because they provide insight with respect to ongoing operating results of the company.  Such measurements are not recognized in accordance with generally accepted accounting principles (GAAP) and should not be viewed as an alternative to GAAP measures of performance.  Reconciliations of non-GAAP measures to GAAP are provided in schedules C and D.

 

DuPont is a science-based products and services company.  Founded in 1802, DuPont puts science to work by creating sustainable solutions essential to a better, safer, healthier life for people everywhere.  Operating in more than 70 countries, DuPont offers a wide range of innovative products and services for markets including agriculture and food; building and construction; communications; and transportation.

 

Forward-Looking Statements:  This news release contains forward-looking statements based on management’s current expectations, estimates and projections.  All statements that address expectations or projections about the future, including statements about the company’s strategy for growth, product development, market position, expected expenditures and financial results are forward-looking statements.  Some of the forward-looking statements may be identified by words like “expects,” “anticipates,” “plans,” “intends,” “projects,” “indicates,” and similar expressions.  These statements are not guarantees of future performance and involve a number of risks, uncertainties and assumptions.  Many factors, including those discussed more fully elsewhere in this release and in documents filed with the Securities and Exchange Commission by DuPont, particularly its latest annual report on Form 10-K and quarterly report on Form 10-Q, as well as others, could cause results to differ materially from those stated.  These factors include, but are not limited to changes in the laws, regulations, policies and economic conditions, including inflation, interest and foreign currency exchange rates, of countries in which the company does business; competitive pressures; successful integration of structural changes, including restructuring plans, acquisitions, divestitures and alliances; cost of raw materials, research and development of new products, including regulatory approval and market acceptance; seasonality of sales of agricultural products; and severe weather events that cause business interruptions, including plant and power outages, or disruptions in supplier and customer operations. The company undertakes no duty to update any forward-looking statements as a result of future developments or new information.

 

#   #   #

 

6



 

E. I. du Pont de Nemours and Company

Consolidated Income Statements

(Dollars in millions, except per share amounts)

 

SCHEDULE A

 

 

 

Three Months Ended
December 31,

 

Year Ended
December 31,

 

 

 

2009

 

2008

 

2009

 

2008

 

Net sales

 

$

6,419

 

$

5,820

 

$

26,109

 

$

30,529

 

Other income, net

 

395

 

250

 

1,219

 

1,307

 

Total

 

6,814

 

6,070

 

27,328

 

31,836

 

 

 

 

 

 

 

 

 

 

 

Cost of goods sold and other operating charges (a)

 

4,956

 

5,250

 

19,708

 

23,548

 

Selling, general and administrative expenses

 

856

 

799

 

3,440

 

3,593

 

Research and development expense

 

389

 

343

 

1,378

 

1,393

 

Interest expense

 

96

 

104

 

408

 

376

 

Employee separation / asset related charges, net (a)

 

(55

)

535

 

210

 

535

 

Total

 

6,242

 

7,031

 

25,144

 

29,445

 

 

 

 

 

 

 

 

 

 

 

Income (loss) before income taxes

 

572

 

(961

)

2,184

 

2,391

 

Provision for (benefit from) income taxes

 

127

 

(325

)

415

 

381

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

445

 

(636

)

1,769

 

2,010

 

 

 

 

 

 

 

 

 

 

 

Less: Net income (loss) attributable to noncontrolling interests

 

4

 

(7

)

14

 

3

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) attributable to DuPont

 

$

441

 

$

(629

)

$

1,755

 

$

2,007

 

 

 

 

 

 

 

 

 

 

 

Basic earnings (loss) per share of common stock

 

$

0.48

 

$

(0.70

)

$

1.93

 

$

2.21

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings (loss) per share of common stock

 

$

0.48

 

$

(0.70

)

$

1.92

 

$

2.20

 

 

 

 

 

 

 

 

 

 

 

Dividends per share of common stock

 

$

0.41

 

$

0.41

 

$

1.64

 

$

1.64

 

 

 

 

 

 

 

 

 

 

 

Average number of shares outstanding used in earnings per share (EPS) calculation:

 

 

 

 

 

 

 

 

 

Basic

 

904,526,000

 

903,265,000

 

904,395,000

 

902,415,000

 

Diluted

 

910,854,000

 

903,265,000

 

908,712,000

 

907,371,000

 

 


(a) See Schedule B for detail of significant items.

 

7



 

E. I. du Pont de Nemours and Company

Condensed Consolidated Balance Sheets

(Dollars in millions, except per share amounts)

 

SCHEDULE A (continued)

 

 

 

December 31,
2009

 

December 31,
2008

 

Assets

 

 

 

 

 

Current assets

 

 

 

 

 

Cash and cash equivalents

 

$

4,021

 

$

3,645

 

Marketable securities

 

2,116

 

59

 

Accounts and notes receivable, net

 

5,030

 

5,140

 

Inventories

 

5,380

 

5,681

 

Prepaid expenses

 

129

 

143

 

Income taxes

 

612

 

643

 

Total current assets

 

17,288

 

15,311

 

Property, plant and equipment, net of accumulated depreciation
(December 31, 2009 - $17,821; December 31, 2008 - $16,800)

 

11,094

 

11,154

 

Goodwill

 

2,137

 

2,135

 

Other intangible assets

 

2,552

 

2,710

 

Investment in affiliates

 

1,014

 

844

 

Other assets

 

4,100

 

4,055

 

Total

 

$

38,185

 

$

36,209

 

 

 

 

 

 

 

Liabilities and Stockholders’ Equity

 

 

 

 

 

Current liabilities

 

 

 

 

 

Accounts payable

 

$

3,542

 

$

3,128

 

Short-term borrowings and capital lease obligations

 

1,506

 

2,012

 

Income taxes

 

154

 

110

 

Other accrued liabilities

 

4,188

 

4,460

 

Total current liabilities

 

9,390

 

9,710

 

Long-term borrowings and capital lease obligations

 

9,528

 

7,638

 

Other liabilities

 

11,490

 

11,169

 

Deferred income taxes

 

126

 

140

 

Total liabilities

 

30,534

 

28,657

 

 

 

 

 

 

 

Commitments and contingent liabilities

 

 

 

 

 

 

 

 

 

 

 

Stockholders’ equity

 

 

 

 

 

Preferred stock

 

237

 

237

 

Common stock, $0.30 par value; 1,800,000,000 shares authorized;
issued at December 31, 2009 - 990,855,000; December 31, 2008 - 989,415,000

 

297

 

297

 

Additional paid-in capital

 

8,469

 

8,380

 

Reinvested earnings

 

10,710

 

10,456

 

Accumulated other comprehensive loss

 

(5,771

)

(5,518

)

Common stock held in treasury, at cost (87,041,000 shares at December 31, 2009 and 2008)

 

(6,727

)

(6,727

)

Total DuPont stockholders’ equity

 

7,215

 

7,125

 

Noncontrolling interests

 

436

 

427

 

Total equity

 

7,651

 

7,552

 

Total

 

$

38,185

 

$

36,209

 

 

8



 

E. I. du Pont de Nemours and Company

Condensed Consolidated Statements of Cash Flows

(Dollars in millions)

 

SCHEDULE A (continued)

 

 

 

Year Ended
December 31,

 

 

 

2009

 

2008

 

 

 

 

 

 

 

Cash provided by operating activities

 

$

4,741

 

$

3,129

 

 

 

 

 

 

 

Investing activities

 

 

 

 

 

Purchases of property, plant and equipment

 

(1,308

)

(1,978

)

Investments in affiliates

 

(124

)

(55

)

Payments for businesses (net of cash acquired)

 

(13

)

(144

)

Net decrease (increase) in short-term financial instruments

 

(2,016

)

40

 

Other investing activities - net

 

(837

)

527

 

Cash used for investing activities

 

(4,298

)

(1,610

)

 

 

 

 

 

 

Financing activities

 

 

 

 

 

Dividends paid to stockholders

 

(1,492

)

(1,496

)

Net (decrease) increase in borrowings

 

1,391

 

2,089

 

Other financing activities - net

 

4

 

285

 

Cash (used for) provided by financing activities

 

(97

)

878

 

 

 

 

 

 

 

Effect of exchange rate changes on cash

 

30

 

(57

)

 

 

 

 

 

 

Increase in cash and cash equivalents

 

376

 

2,340

 

 

 

 

 

 

 

Cash and cash equivalents at beginning of period

 

3,645

 

1,305

 

 

 

 

 

 

 

Cash and cash equivalents at end of period

 

$

4,021

 

$

3,645

 

 

9



 

E. I. du Pont de Nemours and Company

Schedules of Significant Items

(Dollars in millions, except per share amounts)

 

SCHEDULE B

 

SIGNIFICANT ITEMS

 

 

 

Pre-tax

 

After-tax

 

($ Per Share)

 

 

 

2009

 

2008

 

2009

 

2008

 

2009

 

2008

 

1st Quarter - Total

 

$

 

$

 

$

 

$

 

$

 

$

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2nd Quarter

 

 

 

 

 

 

 

 

 

 

 

 

 

2009 Restructuring charge (a)

 

$

(340

)

$

 

$

(227

)

$

 

$

(0.25

)

$

 

2008 Restructuring adjustment (b)

 

75

 

 

53

 

 

0.06

 

 

Hurricane proceeds and adjustments (c)

 

50

 

 

33

 

 

0.04

 

 

2nd Quarter - Total

 

$

(215

)

$

 

$

(141

)

$

 

$

(0.15

)

$

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3rd Quarter

 

 

 

 

 

 

 

 

 

 

 

 

 

Hurricane charges (d)

 

$

 

$

(227

)

$

 

$

(146

)

$

 

$

(0.16

)

3rd Quarter - Total

 

$

 

$

(227

)

$

 

$

(146

)

$

 

$

(0.16

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4th Quarter

 

 

 

 

 

 

 

 

 

 

 

 

 

2008 and 2009 Restructuring adjustments (b)

 

$

55

 

$

 

$

39

 

$

 

$

0.04

 

$

 

2008 Restructuring charges (e)

 

 

(535

)

 

(380

)

 

(0.42

)

4th Quarter - Total

 

$

55

 

$

(535

)

$

39

 

$

(380

)

$

0.04

 

$

(0.42

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Full Year - Total

 

$

(160

)

$

(762

)

$

(102

)

$

(526

)

$

(0.11

)

$

(0.58

)

 


(a)

Second quarter and full year 2009 included a $(340) restructuring charge recorded in Employee separation / asset related charges, net related to severance and related benefit costs, asset related charges, and other non-personnel costs. Pre-tax amounts by segment were: Electronics & Communications - $(43); Performance Chemicals - $(66); Performance Coatings - $(65); Performance Materials - $(110); Safety & Protection - $(55); and Other - $(1).

(b)

Second quarter and fourth quarter 2009 included a net reduction of $75 and $55, respectively for estimated costs recorded in Employee separation / asset related charges, net related to the 2008 and 2009 restructuring programs primarily due to the achievement of work force reductions through non-severance programs. Total full year pre-tax amounts by segment were: Agriculture & Nutrition - $1; Electronics and Communications - $6; Performance Chemicals - $12; Performance Coatings - $50; Performance Materials - $52; Safety & Protection - $10; and Other - $(1).

(c)

Second quarter and full year 2009 included a $50 benefit in Cost of goods sold and other operating charges resulting from a reduction of $26 from lower than estimated inventory and permanent investment write-offs and $24 in insurance recoveries relating to the damage from Hurricane Ike in 2008. Total pre-tax amount relates to the Performance Materials segment.

(d)

Third quarter and full year 2008 included a pre-tax charge of $(227) for costs associated with clean up, restoration of manufacturing operations, and lost inventory resulting from hurricanes damages. Pre-tax hurricane charges by segment were: Agriculture & Nutrition - $(4); Performance Chemicals - $(6); Performance Materials - $(216); and Safety & Protection - $(1).

(e)

Fourth quarter and full year 2008 includes a $(535) restructuring charge in Employee separation / asset related charges, net comprised of severance and related benefit costs, asset write-offs, impairment charges, and other non-personnel costs. Pre-tax amounts by segment were: Agriculture & Nutrition - $(18); Electronics & Communications - $(37); Performance Chemicals - $(50); Performance Coatings - $(209); Performance Materials - $(94); Safety & Protection — $(96); and Other - $(31).

 

See Schedule C for detail by segment.

 

10



 

E. I. du Pont de Nemours and Company

Consolidated Segment Information

(Dollars in millions)

 

SCHEDULE C

 

 

 

Three Months Ended
December 31,

 

Year Ended
December 31,

 

SEGMENT SALES (1)

 

2009

 

2008

 

2009

 

2008

 

Agriculture & Nutrition

 

$

1,368

 

$

1,225

 

$

8,287

 

$

7,952

 

Electronics & Communications

 

582

 

477

 

1,918

 

2,194

 

Performance Chemicals

 

1,320

 

1,207

 

4,964

 

6,035

 

Performance Coatings

 

975

 

905

 

3,429

 

4,361

 

Performance Materials

 

1,436

 

1,194

 

4,768

 

6,425

 

Safety & Protection

 

759

 

834

 

2,811

 

3,733

 

Other

 

45

 

31

 

158

 

160

 

Total Segment sales

 

$

6,485

 

$

5,873

 

$

26,335

 

$

30,860

 

 

 

 

 

 

 

 

 

 

 

Elimination of transfers

 

(66

)

(53

)

(226

)

(331

)

Consolidated net sales

 

$

6,419

 

$

5,820

 

$

26,109

 

$

30,529

 

 


(1)   Sales for the reporting segments include transfers.

 

11



 

E. I. du Pont de Nemours and Company

Consolidated Segment Information

(Dollars in millions)

 

SCHEDULE C (continued)

 

 

 

Three Months Ended
December 31,

 

Year Ended
December 31,

 

PRE-TAX OPERATING INCOME/(LOSS) (PTOI)

 

2009

 

2008

 

2009

 

2008

 

Agriculture & Nutrition

 

$

(95

)

$

(182

)

$

1,224

 

$

1,087

 

Electronics & Communications

 

67

 

(8

)

87

 

251

 

Performance Chemicals

 

217

 

(36

)

547

 

687

 

Performance Coatings

 

78

 

(290

)

69

 

(8

)

Performance Materials

 

198

 

(223

)

287

 

128

 

Safety & Protection

 

144

 

(9

)

260

 

661

 

Pharmaceuticals

 

247

 

265

 

1,037

 

1,025

 

Other

 

(58

)

(112

)

(171

)

(181

)

Total Segment PTOI

 

$

798

 

$

(595

)

$

3,340

 

$

3,650

 

 

 

 

 

 

 

 

 

 

 

Net exchange gains (losses) (1)

 

(3

)

(116

)

(205

)

(255

)

Corporate expenses & net interest

 

(223

)

(250

)

(951

)

(1,004

)

Income (loss) before income taxes

 

$

572

 

$

(961

)

$

2,184

 

$

2,391

 

 

 

 

Three Months Ended
December 31,

 

Year Ended
December 31,

 

SIGNIFICANT ITEMS BY SEGMENT (PRE-TAX) (2)

 

2009

 

2008

 

2009

 

2008

 

Agriculture & Nutrition

 

$

2

 

$

(18

)

$

1

 

$

(22

)

Electronics & Communications

 

6

 

(37

)

(37

)

(37

)

Performance Chemicals

 

9

 

(50

)

(54

)

(56

)

Performance Coatings

 

8

 

(209

)

(15

)

(209

)

Performance Materials

 

24

 

(94

)

(8

)

(310

)

Safety & Protection

 

9

 

(96

)

(45

)

(97

)

Pharmaceuticals

 

 

 

 

 

Other

 

(3

)

(31

)

(2

)

(31

)

Total significant items by segment

 

$

55

 

$

(535

)

$

(160

)

$

(762

)

 

 

 

Three Months Ended
December 31,

 

Year Ended
December 31,

 

PTOI EXCLUDING SIGNIFICANT ITEMS

 

2009

 

2008

 

2009

 

2008

 

Agriculture & Nutrition

 

$

(97

)

$

(164

)

$

1,223

 

$

1,109

 

Electronics & Communications

 

61

 

29

 

124

 

288

 

Performance Chemicals

 

208

 

14

 

601

 

743

 

Performance Coatings

 

70

 

(81

)

84

 

201

 

Performance Materials

 

174

 

(129

)

295

 

438

 

Safety & Protection

 

135

 

87

 

305

 

758

 

Pharmaceuticals

 

247

 

265

 

1,037

 

1,025

 

Other

 

(55

)

(81

)

(169

)

(150

)

Total Segment PTOI excluding significant items

 

$

743

 

$

(60

)

$

3,500

 

$

4,412

 

 


(1)   Gains and losses resulting from the company’s hedging program are largely offset by associated tax effects.  See Schedule D for additional information.

(2)   See Schedule B for detail of significant items.

 

12



 

E. I. du Pont de Nemours and Company

Reconciliation of Non-GAAP Measures

(Dollars in millions, except per share amounts)

 

SCHEDULE D

 

Summary of Earnings Comparisons

 

 

 

Three Months Ended
December 31,

 

Year Ended
December 31,

 

 

 

2009

 

2008

 

%
Change

 

2009

 

2008

 

%
Change

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Segment PTOI

 

$

798

 

$

(595

)

n/m

 

$

3,340

 

$

3,650

 

-8

%

Significant items charge (benefit) included in PTOI (per Schedule B)

 

(55

)

535

 

 

 

160

 

762

 

 

 

Segment PTOI excluding significant items

 

$

743

 

$

(60

)

n/m

 

$

3,500

 

$

4,412

 

-21

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) attributable to DuPont

 

$

441

 

$

(629

)

n/m

 

$

1,755

 

$

2,007

 

-13

%

Significant items charge (benefit) included in net income (loss) attributable to DuPont (per Schedule B)

 

(39

)

380

 

 

 

102

 

526

 

 

 

Net income (loss) attributable to DuPont excluding significant items

 

$

402

 

$

(249

)

n/m

 

$

1,857

 

$

2,533

 

-27

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EPS

 

$

0.48

 

$

(0.70

)

n/m

 

$

1.92

 

$

2.20

 

-13

%

Significant items charge (benefit) included in EPS (per Schedule B)

 

(0.04

)

0.42

 

 

 

0.11

 

0.58

 

 

 

EPS excluding significant items

 

$

0.44

 

$

(0.28

)

n/m

 

$

2.03

 

$

2.78

 

-27

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average number of diluted shares outstanding

 

910,854,000

 

903,265,000

 

0.8

%

908,712,000

 

907,371,000

 

0.1

%

 

Reconciliation of Earnings Per Share (EPS)

 

 

 

Year Ended

 

 

 

 

 

 

 

 

 

 

 

December 31,

 

 

 

 

 

 

 

 

 

 

 

2009
Actual

 

2008
Actual

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share - excluding significant items

 

$

2.03

 

$

2.78

 

 

 

 

 

 

 

 

 

Significant items included in EPS(1):

 

 

 

 

 

 

 

 

 

 

 

 

 

2009 Restructuring charge

 

(0.25

)

 

 

 

 

 

 

 

 

 

2009 Restructuring credit

 

0.02

 

 

 

 

 

 

 

 

 

 

2008 Restructuring credit (charge)

 

0.08

 

(0.42

)

 

 

 

 

 

 

 

 

Hurricane proceeds and adjustments

 

0.04

 

 

 

 

 

 

 

 

 

 

Hurricane charge

 

 

(0.16

)

 

 

 

 

 

 

 

 

Net charge for significant items

 

(0.11

)

(0.58

)

 

 

 

 

 

 

 

 

Reported EPS

 

$

1.92

 

$

2.20

 

 

 

 

 

 

 

 

 

 


(1)  See Schedule B for detail of significant items.

 

Calculation of Free Cash Flow

 

 

 

Year Ended

 

 

 

 

 

 

 

 

 

 

 

December 31,

 

 

 

 

 

 

 

 

 

 

 

2009

 

2008

 

 

 

 

 

 

 

 

 

Cash provided by operating activities

 

$

4,741

 

$

3,129

 

 

 

 

 

 

 

 

 

Less: Purchases of property, plant and equipment

 

1,308

 

1,978

 

 

 

 

 

 

 

 

 

Free cash flow

 

$

3,433

 

$

1,151

 

 

 

 

 

 

 

 

 

 

13



 

E. I. du Pont de Nemours and Company

Reconciliation of Non-GAAP Measures

(Dollars in millions, except per share amounts)

 

SCHEDULE D (continued)

 

Reconciliations of Adjusted EBIT / EBITDA to Consolidated Income Statements

 

 

 

Three Months Ended
December 31,

 

Year Ended
December 31,

 

 

 

2009

 

2008

 

2009

 

2008

 

 

 

 

 

 

 

 

 

 

 

Income (loss) before income taxes

 

$

572

 

$

(961

)

$

2,184

 

$

2,391

 

Less: Net income (loss) attributable to noncontrolling interests

 

4

 

(7

)

14

 

3

 

Add: Interest expense

 

96

 

104

 

408

 

376

 

Adjusted EBIT

 

664

 

(850

)

2,578

 

2,764

 

Add: Depreciation and amortization

 

346

 

348

 

1,503

 

1,444

 

Adjusted EBITDA

 

$

1,010

 

$

(502

)

$

4,081

 

$

4,208

 

 

Reconciliations of Fixed Costs as a Percent of Sales

 

 

 

Three Months Ended
December 31,

 

Year Ended
December 31,

 

 

 

2009

 

2008

 

2009

 

2008

 

 

 

 

 

 

 

 

 

 

 

Total charges and expenses - consolidated income statements

 

$

6,242

 

$

7,031

 

$

25,144

 

$

29,445

 

Remove:

 

 

 

 

 

 

 

 

 

Interest expense

 

(96

)

(104

)

(408

)

(376

)

Variable costs (1)

 

(2,979

)

(3,245

)

(12,507

)

(15,736

)

Significant items (2)

 

55

 

(535

)

(160

)

(762

)

Fixed costs

 

$

3,222

 

$

3,147

 

$

12,069

 

$

12,571

 

 

 

 

 

 

 

 

 

 

 

Consolidated net sales

 

$

6,419

 

$

5,820

 

$

26,109

 

$

30,529

 

 

 

 

 

 

 

 

 

 

 

Fixed costs as a percent of consolidated net sales

 

50.2

%

54.1

%

46.2

%

41.2

%

 


(1)   Includes variable manufacturing costs, freight, commissions and other selling expenses which vary with the volume of sales.

(2)   See Schedule B for detail of significant items.

 

14



 

E. I. du Pont de Nemours and Company

Reconciliation of Non-GAAP Measures

(Dollars in millions, except per share amounts)

 

SCHEDULE D (continued)

 

Exchange Gains/Losses

 

The company routinely uses forward exchange contracts to offset its net exposures, by currency, related to the foreign currency denominated monetary assets and liabilities of its operations. The objective of this program is to maintain an approximately balanced position in foreign currencies in order to minimize, on an after-tax basis, the effects of exchange rate changes.  The net pre-tax exchange gains and losses are recorded in Other income, net on the Consolidated Income Statements and are largely offset by the associated tax impact.

 

 

 

Three Months Ended
December 31,

 

Year Ended
December 31,

 

 

 

2009

 

2008

 

2009

 

2008

 

Subsidiary/Affiliate Monetary Position Gain/(Loss)

 

 

 

 

 

 

 

 

 

Pre-tax exchange gains (losses) (includes equity affiliates)

 

$

(8

)

$

(286

)

$

280

 

$

(396

)

Local tax benefits (expenses)

 

(24

)

93

 

(75

)

130

 

Net after-tax impact from subsidiary exchange gains (losses)

 

$

(32

)

$

(193

)

$

205

 

$

(266

)

 

 

 

 

 

 

 

 

 

 

Hedging Program Gain/(Loss)

 

 

 

 

 

 

 

 

 

Pre-tax exchange gains (losses)

 

$

5

 

$

170

 

$

(485

)

$

141

 

Tax benefits (expenses)

 

(2

)

(58

)

166

 

(47

)

Net after-tax impact from hedging program exchange gains (losses)

 

$

3

 

$

112

 

$

(319

)

$

94

 

 

 

 

 

 

 

 

 

 

 

Total Exchange Gain/(Loss)

 

 

 

 

 

 

 

 

 

Pretax exchange gains (losses)

 

$

(3

)

$

(116

)

$

(205

)

$

(255

)

Tax benefits (expenses)

 

(26

)

35

 

91

 

83

 

Net after-tax exchange gains (losses)

 

$

(29

)

$

(81

)

$

(114

)

$

(172

)

 

As shown above, the “Total Exchange Gain/(Loss)” is the sum of the “Subsidiary/Affiliate Monetary Position Gain/(Loss)” and the “Hedging Program Gain/(Loss).”

 

Reconciliation of Base Income Tax Rate to Effective Income Tax Rate

 

Base income tax rate is defined as the effective income tax rate less the effect of exchange gains/losses, as defined above, and significant items.

 

 

 

Three Months Ended
December 31,

 

Year Ended
December 31,

 

 

 

2009

 

2008

 

2009

 

2008

 

 

 

 

 

 

 

 

 

 

 

Income (loss) before income taxes

 

$

572

 

$

(961

)

$

2,184

 

$

2,391

 

Add: Significant items(1)

 

(55

)

535

 

160

 

762

 

Less: Net exchange gains (losses)

 

(3

)

(116

)

(205

)

(255

)

Income (loss) before income taxes, significant items and exchange gains/losses

 

$

520

 

$

(310

)

$

2,549

 

$

3,408

 

 

 

 

 

 

 

 

 

 

 

Provision for (benefit from) income taxes

 

$

127

 

$

(325

)

$

415

 

$

381

 

Add: Tax benefit (expense) on significant items

 

(16

)

150

 

58

 

231

 

Tax benefits (expenses) on exchange gains/losses

 

(26

)

35

 

91

 

83

 

Provision for (benefit from) income taxes, excluding taxes on significant items and exchange gains/losses

 

$

85

 

$

(140

)

$

564

 

$

695

 

 

 

 

 

 

 

 

 

 

 

Effective income tax rate

 

22.2

%

33.8

%

19.0

%

15.9

%

Significant items effect

 

(0.7

)%

7.3

%

1.2

%

3.5

%

Tax rate before significant items

 

21.5

%

41.1

%

20.2

%

19.4

%

Exchange gains (losses) effect

 

(5.2

)%

4.1

%

1.9

%

1.0

%

Base income tax rate

 

16.3

%

45.2

%

22.1

%

20.4

%

 


(1)  See Schedule B for detail of significant items.

 

15


 

-----END PRIVACY-ENHANCED MESSAGE-----