10-KPeriod: FY2001

EIDP, Inc. Annual Report, Year Ended Dec 31, 2001

Filed March 21, 2002For Securities:CTA-PBCTA-PA

Summary

E. I. du Pont de Nemours and Company (DuPont) filed its 2001 Form 10-K on March 20, 2002, detailing its operations and financial condition as of December 31, 2001. The report highlights the company's diverse business segments, including Agriculture & Nutrition, Nylon, Performance Coatings & Polymers, Pharmaceuticals, Pigments & Chemicals, Polyester, Specialty Fibers, and Specialty Polymers. A significant event during the year was the sale of DuPont Pharmaceuticals to Bristol-Myers Squibb Company, though DuPont retained an interest in the Cozaar® and Hyzaar® brands. The company also continues to manage the divestiture of its former petroleum business, Conoco Inc., as discontinued operations. DuPont emphasizes its global reach, with operations in approximately 75 countries and roughly half of its consolidated sales generated outside the United States. The company is a leader in science and technology across various sectors. In February 2002, DuPont announced a realignment of its businesses into five growth platforms and plans to create a Textiles and Interiors subsidiary, signaling strategic shifts aimed at future growth and market focus. Investors should note the ongoing legal proceedings, particularly those related to the Benlate® fungicide, which, while potentially significant to future results, are not anticipated to materially impact the company's overall financial position or liquidity. The company also faces potential market risks from raw material cost fluctuations, geopolitical events, and the success of new product development.

Key Highlights

  • 1Significant divestiture of DuPont Pharmaceuticals completed on October 1, 2001, with retained interests in key brands (Cozaar®, Hyzaar®).
  • 2Announced strategic realignment into five market- and technology-focused growth platforms and plans to create a Textiles and Interiors subsidiary by year-end 2003.
  • 3Global operations in approximately 75 countries, with about 50% of consolidated sales outside the United States.
  • 4Operates through eight reportable segments: Agriculture & Nutrition, Nylon, Performance Coatings & Polymers, Pharmaceuticals, Pigments & Chemicals, Polyester, Specialty Fibers, and Specialty Polymers.
  • 5Ongoing legal proceedings related to Benlate® fungicide, with management not anticipating a material adverse effect on the company's consolidated financial position or liquidity, despite potential significance to period results.
  • 6The company is a world leader in science and technology, operating in sectors including high-performance materials, synthetic fibers, electronics, specialty chemicals, agriculture, and biotechnology.
  • 7Year-end 2001 global employment stood at approximately 79,000 people.

Frequently Asked Questions

In February 2002, DuPont announced a significant restructuring, realigning its businesses into five market- and technology-focused growth platforms. Additionally, the company announced plans to create a Textiles and Interiors subsidiary, with options to separate it from the company by the end of 2003, subject to market conditions.

DuPont is involved in ongoing litigation related to its Benlate® fungicide. While several cases have been settled or dismissed, approximately 110 cases remain pending, including claims of crop damage, personal injury, and racketeering violations. DuPont denies the allegations and is appealing an August 2001 verdict in Florida. Management does not anticipate a material adverse effect on the company's consolidated financial position or liquidity from these lawsuits, although they could be significant to the results of operations in the period recognized.

The sale of DuPont Pharmaceuticals to Bristol-Myers Squibb Company was completed on October 1, 2001. DuPont retained its interest in the Cozaar® and Hyzaar® brands. Effective from the fourth quarter of 2001, the Pharmaceuticals segment in the company's reporting reflects only DuPont's share of the financial results of its ongoing collaboration and licensing agreement for these specific drugs.

Key risks include potential impacts from governmental and political activities in the 75 countries of operation, fluctuations in raw material costs (particularly oil and natural gas), challenges in new product development and market acceptance, the success of acquisitions and divestitures, agricultural conditions affecting the Agriculture & Nutrition segment, environmental compliance costs, and significant litigation. Economic factors such as inflation and foreign currency exchange rates also pose risks.