10-QPeriod: Q1 FY2009

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

Filed April 28, 2009For Securities:CTA-PBCTA-PA

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.

Financial Highlights

21 data points
Beta

Revenue

$6.87B

Net Income

$489.00M

7.1% Net Margin

EPS (Diluted)

$0.54

Cash & Equivalents

$2.39B

Free Cash Flow

-$1.19B

Financial Statements
Beta
Revenue$6.87B
R&D Expenses$323.00M
SG&A Expenses$907.00M
Operating Expenses$6.52B
Interest Expense$106.00M
Net Income$489.00M
EPS (Basic)$0.54
EPS (Diluted)$0.54

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.

Frequently Asked Questions

The primary driver is the severe global economic recession, which has led to a substantial decrease in demand across most of the company's markets and widespread inventory destocking within supply chains. This resulted in a 19% volume decline and a 20% reduction in net sales.

EIDP's top priority is cash generation. The company is implementing aggressive cost reduction and productivity improvement measures, reducing working capital, trimming capital expenditures, and aligning spending with current demand levels. They have also increased their full-year fixed cost reduction goal and plan further restructuring.

The Agriculture & Nutrition segment is the sole area showing growth, with sales up 6% due to strong seed sales. Conversely, segments like Coatings & Color Technologies, Electronic & Communication Technologies, and Performance Materials are experiencing significant declines in sales and profitability due to reduced demand in sectors like automotive and construction.

EIDP has revised its full-year earnings outlook downward to a range of $1.70 to $2.10 per share, anticipating that weak market demand will persist throughout 2009. This revision reflects the ongoing impact of the protracted recessionary environment and currency fluctuations.