10-KPeriod: FY2009

EIDP, Inc. Annual Report, Year Ended Dec 31, 2009

Filed February 17, 2010For Securities:CTA-PBCTA-PA

Summary

EIDP, Inc.'s (CTA-PB) 2009 10-K report highlights a global science and innovation leader operating across diverse sectors including agriculture, electronics, chemicals, coatings, materials, and safety. The company faced a challenging 2009, with consolidated net sales down 14% to $26.1 billion due to a 12% volume decline, reflecting the global economic recession. Despite this, the company demonstrated resilience by focusing on productivity improvements, cost reductions, and strategic growth opportunities in emerging markets. The report emphasizes DuPont's commitment to innovation and sustainability, with significant R&D investments aimed at developing solutions for increasing food production, decreasing fossil fuel dependency, and enhancing safety and environmental protection. While the company's diverse business segments showed varied performance, the Pharmaceuticals segment, reliant on patent-expired drugs Cozaar® and Hyzaar®, is expected to see a significant decline in earnings. The company also detailed ongoing efforts to manage risks, including price volatility for raw materials and energy, potential litigation, environmental liabilities, and global economic uncertainties.

Financial Statements
Beta
Revenue$26.11B
R&D Expenses$1.38B
SG&A Expenses$3.44B
Operating Expenses$25.14B
Operating Income$3.34B
Interest Expense$408.00M
Net Income$1.77B
EPS (Basic)$1.93
EPS (Diluted)$1.92
Shares Outstanding (Basic)904.39M
Shares Outstanding (Diluted)908.71M

Key Highlights

  • 1Consolidated net sales decreased by 14% to $26.1 billion in 2009, driven by a 12% drop in sales volume, largely due to the global economic recession.
  • 2DuPont's strategic focus for growth is centered on four key global trends: increasing food production, decreasing dependency on fossil fuels, protecting people and the environment, and growth in emerging markets.
  • 3The company is actively managing raw material and energy price volatility through long-term contracts and derivative instruments.
  • 4Significant R&D investment continues, with a focus on developing sustainable solutions and innovative products across its diverse business segments.
  • 5The Pharmaceuticals segment's income, derived from Cozaar® and Hyzaar®, is projected to decline significantly starting in 2010 due to patent expirations.
  • 6DuPont is undertaking substantial restructuring programs aimed at improving long-term competitiveness and aligning costs with market conditions.
  • 7The company maintains a strong balance sheet and liquidity position, with $6.1 billion in cash, cash equivalents, and marketable securities as of December 31, 2009.

Frequently Asked Questions

The primary driver of DuPont's financial performance in 2009 was the global economic recession, which led to a significant decrease in sales volume across most of its business segments. Consolidated net sales fell by 14% to $26.1 billion, with a 12% decline in volume.

The Pharmaceuticals segment's income is primarily derived from the drugs Cozaar® and Hyzaar®, whose U.S. patents are set to expire in 2010. DuPont expects a significant drop in earnings from this segment starting in 2010 and continuing until the licensing agreement terminates. The company is focusing on its other diversified segments for continued growth.

DuPont's growth strategy is based on addressing four major global trends: increasing food production, decreasing dependency on fossil fuels, protecting people, assets, and the environment, and capitalizing on growth in emerging markets. The company is investing in R&D and expanding its presence in these areas.

DuPont highlights several key risks, including price increases for energy and raw materials, failure to develop and market new products, litigation and contingencies, significant environmental liabilities, market acceptance of genetically modified products, changes in government policies, economic factors like inflation and currency fluctuations, global economic conditions, business disruptions, and the inability to protect its intellectual property rights.