Summary
E. I. du Pont de Nemours and Company (DuPont) reported a significant decline in net sales for the third quarter of 2015, down 17% year-over-year to $4.9 billion, and a 12% decline for the nine-month period to $19.8 billion. This downturn was primarily attributed to a strong U.S. dollar negatively impacting currency exchange rates, lower sales volumes across key segments like Agriculture, and continued weakness in emerging markets. Despite these top-line challenges, the company's ongoing operational redesign and cost reduction initiatives provided some offset, contributing incremental cost savings and improving segment pre-tax operating income (PTOI) in certain areas like Electronics & Communications and Industrial Biosciences. The company completed the separation of its Performance Chemicals segment through the spin-off of The Chemours Company on July 1, 2015. The financial results of this segment are now presented as discontinued operations. DuPont also continued its share repurchase program, repurchasing approximately $2.4 billion in shares year-to-date under its 2014 plan and initiating an accelerated share repurchase program for $2 billion in August 2015. The company's liquidity remained solid, though total debt saw a decrease, and credit ratings experienced downgrades from major agencies.
Financial Highlights
53 data points| Revenue | $4.87B |
| Cost of Revenue | $3.08B |
| Gross Profit | $1.79B |
| R&D Expenses | $441.00M |
| SG&A Expenses | $1.05B |
| Operating Expenses | $4.74B |
| Operating Income | $580.00M |
| Interest Expense | $82.00M |
| Net Income | $235.00M |
| EPS (Basic) | $0.26 |
| EPS (Diluted) | $0.26 |
| Shares Outstanding (Basic) | 887.27M |
| Shares Outstanding (Diluted) | 891.29M |
Key Highlights
- 1Net sales decreased by 17% to $4.9 billion for the third quarter of 2015 and by 12% to $19.8 billion for the nine months ended September 30, 2015, largely due to an 8% negative currency impact and lower sales volumes.
- 2The spin-off of the Performance Chemicals segment (The Chemours Company) was completed on July 1, 2015, with its results now reported as discontinued operations.
- 3Segment Pre-Tax Operating Income (PTOI) decreased by 15% to $580 million for the third quarter, impacted by negative currency effects and lower volumes, partially offset by insurance recoveries and cost efficiencies.
- 4DuPont continued its aggressive share repurchase program, buying back $2.4 billion worth of shares year-to-date and initiating a $2 billion accelerated share repurchase in August 2015.
- 5Cash used for operating activities was $1.8 billion for the nine months, relatively stable compared to the prior year, while cash used for investing and financing activities saw significant changes due to divestitures and debt management.
- 6The company is focused on cost savings through its operational redesign initiative, expecting to achieve $1.3 billion in savings on a run-rate basis by the end of 2016.
- 7Legal proceedings, including those related to Imprelis® herbicide and PFOA, continue to be disclosed, with significant accruals and ongoing developments, though the company indemnifies Chemours for certain PFOA-related liabilities.