Summary
E. I. du Pont de Nemours and Company (DuPont) reported lower net sales and net income for the first quarter of 2015 compared to the same period in 2014. Net sales decreased by 9% to $9.2 billion, primarily due to a significant negative impact from currency fluctuations (6%) and the absence of sales from portfolio changes (2%). Net income attributable to DuPont fell by 28% to $1,031 million, or $1.13 per diluted share, from $1,439 million, or $1.54 per diluted share, in the prior year. This decline was driven by lower segment pre-tax operating income and higher income taxes. The company highlighted significant progress in its global redesign initiative, expecting cost savings to reach $0.40 per share in 2015. A major development is the impending separation of the Performance Chemicals segment, which is expected to be completed on July 1, 2015, creating a new company named The Chemours Company. DuPont anticipates receiving approximately $4 billion in dividend proceeds from Chemours prior to separation, with plans to return substantially all of this amount to shareholders through share repurchases. The company also reported a notable increase in other income, driven by foreign exchange gains, and continued to manage market risks through derivative instruments.
Financial Highlights
52 data points| Revenue | $7.84B |
| Cost of Revenue | $4.52B |
| Gross Profit | $3.32B |
| R&D Expenses | $479.00M |
| SG&A Expenses | $1.22B |
| Operating Expenses | $7.77B |
| Operating Income | $1.94B |
| Interest Expense | $84.00M |
| Net Income | $1.03B |
| EPS (Basic) | $1.13 |
| EPS (Diluted) | $1.13 |
| Shares Outstanding (Basic) | 906.84M |
| Shares Outstanding (Diluted) | 913.82M |
Key Highlights
- 1Net sales for Q1 2015 were $9.2 billion, a 9% decrease from $10.1 billion in Q1 2014, largely impacted by a 6% negative currency effect.
- 2Net income attributable to DuPont decreased by 28% to $1,031 million ($1.13 per diluted share) from $1,439 million ($1.54 per diluted share) year-over-year.
- 3The company is on track to complete the spin-off of its Performance Chemicals segment (to become The Chemours Company) on July 1, 2015.
- 4DuPont expects to receive approximately $4 billion in dividends from Chemours prior to separation, intending to return most of it to shareholders via buybacks.
- 5Cost savings from the global redesign initiative are projected to increase to $0.40 per share in 2015, with expected run-rate savings of $1 billion by Q4 2015.
- 6Other income, net, significantly increased to $198 million from $17 million, driven by foreign exchange gains and litigation settlements.
- 7The company's cash, cash equivalents, and marketable securities decreased to $3.7 billion from $7.0 billion due to funding seasonal working capital needs.