EIDP, Inc. Quarterly Report for Q1 Ended Mar 31, 2009

Summary

EIDP, Inc. (CTA-PB) reported significantly lower net sales and earnings for the first quarter of 2009 compared to the prior year, primarily due to the severe global economic recession which led to a 20% decrease in net sales ($6.9 billion vs. $8.6 billion) and a 59% drop in net income attributable to DuPont. The company's top priority is cash generation, implemented through cost-cutting, working capital reduction, and trimmed capital expenditures. While agriculture and certain growth areas like photovoltaics showed resilience or growth, other segments were heavily impacted by reduced demand and inventory destocking. The company has revised its full-year earnings outlook downward and is initiating further cost reduction and restructuring actions.

Key Highlights

• 1Net sales for Q1 2009 decreased by 20% to $6.9 billion, driven by a 19% decline in sales volume due to the global economic recession.
• 2Net income attributable to DuPont plummeted by 59% to $488 million in Q1 2009 compared to $1,191 million in Q1 2008.
• 3The company is prioritizing cash generation through cost reductions, working capital improvements, and reduced capital expenditures.
• 4Agriculture & Nutrition was the only segment showing sales growth (6% higher), driven by strong seed sales, while other segments like Coatings & Color Technologies, Electronic & Communication Technologies, and Performance Materials experienced significant sales declines (30-45%).
• 5The company revised its full-year earnings outlook downward to a range of $1.70 to $2.10 per share.
• 6Full-year fixed cost reduction goals were increased from $730 million to $1 billion, with additional restructuring actions planned.
• 7Planned 2009 capital expenditures were reduced to $1.4 billion, and a $1.0 billion working capital reduction goal was reaffirmed.

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