Summary
E.I. du Pont de Nemours and Company (DuPont) reported its third quarter 2012 results, showing a decrease in net sales and income from continuing operations compared to the prior year period. For the three months ended September 30, 2012, the company experienced a net loss of $0.05 per share from continuing operations, a significant drop from the $0.39 earnings per share in the same period of 2011. This decline was attributed to lower sales volumes, particularly in the Performance Chemicals, Electronics & Communications, and Safety & Protection segments, as well as unfavorable currency impacts. The company also incurred substantial charges related to the Imprelis® herbicide claims, restructuring activities, and asset impairments. Despite the quarterly challenges, the company is strategically positioning itself for the future with the pending sale of its Performance Coatings business to The Carlyle Group for approximately $4.9 billion, expected to close in Q1 2013. This divestiture will result in the reclassification of the business as discontinued operations. DuPont continues to focus on productivity improvements and cost-cutting measures, with a restructuring plan aiming for significant cost savings in 2013. The company maintains a strong balance sheet and access to capital markets, reinforcing its commitment to shareholder returns and future growth initiatives.
Financial Highlights
51 data points| Revenue | $7.39B |
| Cost of Revenue | $4.78B |
| Gross Profit | $2.61B |
| R&D Expenses | $521.00M |
| SG&A Expenses | $764.00M |
| Operating Expenses | $7.51B |
| Operating Income | $461.00M |
| Interest Expense | $116.00M |
| Net Income | $8.00M |
| Shares Outstanding (Basic) | 931.74M |
| Shares Outstanding (Diluted) | 940.53M |
Key Highlights
- 1Net sales for the third quarter decreased by 9% to $7.4 billion, primarily due to a 5% lower volume and a 4% negative currency impact.
- 2Diluted earnings per share from continuing operations for Q3 2012 were a loss of $0.05, compared to earnings of $0.39 in Q3 2011.
- 3The company recorded significant pre-tax charges in Q3 2012 totaling $519 million, related to Imprelis® herbicide claims ($125 million), restructuring ($152 million), and asset impairments ($242 million).
- 4DuPont entered into an agreement to sell its Performance Coatings business to The Carlyle Group for approximately $4.9 billion, with the transaction expected to close in the first quarter of 2013.
- 5The Performance Coatings business has been reclassified as discontinued operations and its assets/liabilities as held for sale.
- 6Cash used for operating activities for the first nine months of 2012 was $426 million, a decline from $431 million provided in the same period of 2011, largely due to pension contributions.
- 7The company declared a quarterly dividend of $0.43 per share, marking its 432nd consecutive quarterly dividend.