Summary
E. I. du Pont de Nemours and Company (DuPont) reported a net loss of $82 million ($0.09 per share) for the third quarter of 2005, a significant turnaround from a net income of $331 million ($0.33 per share) in the same period of the prior year. This loss was primarily driven by $146 million in charges related to Hurricane Katrina and Rita, which impacted manufacturing operations and inventory. Despite the quarterly loss, the nine-month period ending September 30, 2005, showed strong profitability with a net income of $1.9 billion, up from $1.5 billion in the prior year. This growth was supported by higher net sales, improved other income primarily from currency exchange gains, and effective cost management, despite elevated energy and raw material costs. The company also announced a significant $3 billion accelerated share repurchase agreement, demonstrating a commitment to returning capital to shareholders.
Key Highlights
- 1Third quarter 2005 net loss of $82 million, significantly impacted by $146 million in hurricane-related charges.
- 2Nine-month 2005 net income increased to $1.9 billion from $1.5 billion in the prior year.
- 3Consolidated net sales for Q3 2005 increased 2% to $5.9 billion, driven by higher prices and currency benefits, despite hurricane disruptions.
- 4Other income significantly increased in Q3 2005 to $438 million from $287 million, largely due to foreign currency exchange gains.
- 5Company announced a $3 billion accelerated share repurchase agreement in October 2005 to buy back common stock.
- 6Interest expense increased in Q3 2005 to $140 million from $86 million due to higher average interest rates and debt levels.
- 7Significant tax expense of $320 million recorded in Q3 2005 related to planned repatriation of foreign earnings under the American Jobs Creation Act of 2004.