Summary
E. I. du Pont de Nemours and Company (DuPont) reported net sales of $7.4 billion for the first quarter of 2016, a decrease of 6% compared to $7.8 billion in the prior year. This decline was primarily driven by a 4% negative currency impact and a 2% reduction in volume, partially offset by local price and product mix gains in certain segments. Net income available to common stockholders was $1.226 billion ($1.40 per share), an increase from $1.031 billion ($1.13 per share) in the same period last year. The company recognized a significant pre-tax gain of $369 million from the sale of DuPont (Shenzhen) Manufacturing Limited, contributing to the improved net income. DuPont continues to navigate a transformative period, highlighted by the pending all-stock merger of equals with The Dow Chemical Company, expected in the second half of 2016. Management is focused on strategic initiatives, including cost savings and restructuring plans, which are on track to deliver significant reductions. The company also reported a $75 million charge related to the decision to not restart an insecticide manufacturing facility in La Porte, Texas. Overall, DuPont demonstrated resilience in a challenging market, with solid earnings driven by effective cost management and a notable gain from asset divestiture, while progressing strategically towards its merger with Dow.
Financial Highlights
51 data points| Revenue | $7.41B |
| Cost of Revenue | $4.24B |
| Gross Profit | $3.16B |
| R&D Expenses | $418.00M |
| SG&A Expenses | $1.13B |
| Operating Income | $1.22B |
| Interest Expense | $92.00M |
| Net Income | $1.23B |
| EPS (Basic) | $1.40 |
| EPS (Diluted) | $1.39 |
| Shares Outstanding (Basic) | 873.55M |
| Shares Outstanding (Diluted) | 877.25M |
Key Highlights
- 1Net sales decreased by 6% to $7.4 billion in Q1 2016 compared to $7.8 billion in Q1 2015, primarily due to currency headwinds and lower volumes.
- 2Net income attributable to DuPont shareholders increased to $1.226 billion ($1.40 per share) from $1.031 billion ($1.13 per share) year-over-year.
- 3The company recognized a significant pre-tax gain of $369 million ($214 million after-tax) from the sale of DuPont (Shenzhen) Manufacturing Limited.
- 4A $75 million pre-tax charge was recorded due to the decision to not restart the La Porte, Texas insecticide manufacturing facility.
- 5Selling, General, and Administrative (SG&A) expenses decreased by 8% to $1.1 billion, reflecting cost savings and currency benefits.
- 6Research and Development (R&D) expenses decreased by 13% to $418 million, also impacted by cost savings and currency.
- 7The company incurred $24 million in costs related to the proposed merger with The Dow Chemical Company during the quarter.