Summary
E. I. du Pont de Nemours and Company (DuPont) reported strong financial results for the nine months ended September 30, 2013, driven by significant gains from the sale of its Performance Coatings business and an overall increase in net sales. For the third quarter of 2013, net sales rose 5% to $7.7 billion, with improved volume across key segments like Agriculture, Performance Chemicals, and Performance Materials, despite lower local prices and currency impacts. The company's strategic focus on growth areas, particularly Agriculture, is evident in its double-digit sales increase and improved profitability for the segment year-to-date, benefiting from higher seed prices and volumes, as well as reduced Imprelis® herbicide claims. DuPont's financial position was bolstered by the February 2013 sale of its Performance Coatings business, which generated a pre-tax gain of $2.7 billion and provided proceeds for a $1 billion share buyback. This strategic divestiture, coupled with disciplined cost management and ongoing restructuring savings, contributed to a 9% increase in income from continuing operations after taxes year-to-date, reaching $2.7 billion. The company continues to manage its capital resources effectively, with significant cash reserves and access to credit facilities, while also returning value to shareholders through dividends and share repurchases.
Financial Highlights
51 data points| Revenue | $7.74B |
| Cost of Revenue | $5.17B |
| Gross Profit | $2.57B |
| R&D Expenses | $540.00M |
| SG&A Expenses | $774.00M |
| Operating Expenses | $7.58B |
| Operating Income | $741.00M |
| Interest Expense | $108.00M |
| Net Income | $288.00M |
| EPS (Basic) | $0.30 |
| EPS (Diluted) | $0.30 |
| Shares Outstanding (Basic) | 925.64M |
| Shares Outstanding (Diluted) | 933.00M |
Key Highlights
- 1Net sales for the third quarter increased 5% to $7.7 billion, driven by a 9% rise in volume across key segments.
- 2The sale of the Performance Coatings business in February 2013 generated a pre-tax gain of $2.7 billion and funded a $1 billion share buyback.
- 3Income from continuing operations after taxes for the nine months ended September 30, 2013, increased by 9% to $2.7 billion.
- 4The Agriculture segment saw a 12% increase in sales year-to-date, with improved PTOI driven by volume growth, higher pricing, and reduced Imprelis® herbicide claims.
- 5Total segment PTOI for the nine months was $4.8 billion, a 2% decrease, primarily due to a $0.9 billion decline in Performance Chemicals PTOI, offset by improvements in other segments.
- 6Cash used for operating activities for the nine months was $(2.3) billion, a significant increase from $(0.4) billion in the prior year, largely due to changes in working capital in the Agriculture segment and the absence of prior-year asset impairment charges.
- 7The company repurchased $1 billion of its stock through an accelerated share repurchase program in the first quarter, utilizing proceeds from the Performance Coatings sale.