Early Access

10-KPeriod: FY2014

EIDP, Inc. Annual Report, Year Ended Dec 31, 2014

Filed February 5, 2015For Securities:CTA-PBCTA-PA

Summary

EIDP, Inc. (DuPont) reported net sales of $34.7 billion for the year ended December 31, 2014, a slight decrease from the prior year, primarily due to portfolio changes and currency impacts. Income from continuing operations after taxes saw a significant increase of 26% to $3.6 billion, driven by higher segment operating income and lower pension costs, partially offset by restructuring and separation costs. The company is strategically focusing on higher growth, higher value areas in Agriculture & Nutrition, Advanced Materials, and Bio-Based Industrials. A major initiative underway is the planned separation of its Performance Chemicals segment into a new entity, The Chemours Company, expected in mid-2015. DuPont also initiated a significant global redesign and restructuring program in June 2014 to reduce costs and improve productivity, resulting in a pre-tax charge of $562 million. The company continues its commitment to returning cash to shareholders through dividends, which have been paid continuously since 1904, and share repurchases. Liquidity remains strong, supported by operating cash flow and available credit lines. DuPont faces ongoing risks related to raw material and energy price fluctuations, intellectual property protection, cybersecurity, and potential environmental liabilities, but the company is actively managing these challenges.

Financial Statements
Beta
Revenue$28.41B
Cost of Revenue$17.02B
Gross Profit$11.38B
R&D Expenses$1.96B
SG&A Expenses$4.89B
Operating Expenses$31.05B
Operating Income$6.36B
Interest Expense$377.00M
Net Income$3.64B
EPS (Basic)$3.95
EPS (Diluted)$3.92
Shares Outstanding (Basic)914.75M
Shares Outstanding (Diluted)921.87M

Key Highlights

  • 1Net sales for 2014 were $34.7 billion, a 3% decrease from 2013, attributed to portfolio changes and negative currency impact.
  • 2Income from continuing operations after taxes increased 26% to $3.6 billion in 2014, driven by higher segment PTOI and lower pension costs.
  • 3DuPont is planning to separate its Performance Chemicals segment into a new, publicly traded company named The Chemours Company, expected in mid-2015.
  • 4A global redesign and restructuring initiative was launched in June 2014, resulting in a $562 million pre-tax charge for cost reductions and operational improvements.
  • 5The company's Agriculture segment, its largest by sales, accounted for approximately 50% of R&D expenses.
  • 6DuPont repurchased $2 billion of its common stock in 2014 as part of a $5 billion share buyback plan.
  • 7The company has a strong history of paying dividends, consistently distributing quarterly dividends since 1904.

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