What is the status of the proposed merger with The Dow Chemical Company?

The proposed merger between DuPont and Dow was moving forward. DuPont's shareholders approved the merger agreement on July 20, 2016. The companies anticipated the merger to close in the second half of 2016. Following the merger, they intend to separate into three distinct companies focused on agriculture, specialty products, and material science.

How did the company's financial performance compare to the prior year period?

For the six months ended June 30, 2016, net sales were $14.5 billion, down 3% from the prior year, largely due to currency impacts. However, income from continuing operations increased by 13% to $2.3 billion, benefiting from a gain on the sale of an entity and cost savings from restructuring initiatives. The company also reported a net income attributable to DuPont of $2,246 million for the six months ended June 30, 2016, compared to $1,971 million for the same period in 2015.

What are the significant liabilities or legal proceedings that investors should be aware of?

DuPont is subject to various legal proceedings, including significant environmental and litigation matters related to PFOA (perfluorooctanoic acid). While management does not anticipate that the ultimate disposition of these matters will have a material adverse effect on the company's results of operations, consolidated financial position, or liquidity, there is considerable uncertainty, and the ultimate liabilities could be material to results of operations in the period recognized. The company has an accrual of $19 million for PFOA matters as of June 30, 2016, with an indemnification asset from Chemours for the same amount. Additionally, there are ongoing discussions and potential penalties related to environmental and safety violations at the La Porte and Sabine plants.

How is the company managing its costs and liquidity?

DuPont is actively managing costs through its 2016 global cost savings and restructuring plan, which is on track to deliver significant reductions. This has contributed to a decrease in SG&A and R&D expenses. The company maintained a substantial cash position of $5.2 billion in cash, cash equivalents, and marketable securities as of June 30, 2016. Total debt increased to $10.4 billion from $8.8 billion at year-end 2015, partly due to borrowings under new credit facilities, but the company remained in compliance with its financial covenants.

CTA-PB/CTA-PA 10-Q Quarterly Report Q2 FY2016

Summary

E.I. du Pont de Nemours and Company (DuPont) reported solid financial results for the six months ended June 30, 2016. Net sales saw a slight decline of 3% year-over-year to $14.5 billion, primarily due to currency headwinds. However, income from continuing operations after taxes increased by 13% to $2.3 billion, bolstered by a significant gain from the sale of DuPont (Shenzhen) Manufacturing Limited and ongoing cost savings from the 2016 restructuring plan. The company also provided an update on its proposed merger with Dow Chemical, noting that the shareholder vote had passed and the transaction was expected to close in the second half of 2016. DuPont continued to manage its operational costs effectively, with SG&A and R&D expenses decreasing year-over-year, partly due to the ongoing restructuring efforts which are on track to deliver substantial cost reductions. The company maintained a strong liquidity position, though cash and cash equivalents decreased due to seasonal working capital needs. Investors should note the ongoing legal and environmental proceedings, particularly related to PFOA, which, while management does not expect a material adverse effect, carry inherent uncertainties. The pending merger with Dow is a significant event that could reshape the company's future structure and operations.

Financial Highlights

53 data points

Beta

Revenue

$7.06B

0.4% Gross Margin

Net Income

$1.02B

0.1% Net Margin

EPS (Diluted)

$1.16

Total Assets

$42.27B

Cash & Equivalents

$4.41B

Free Cash Flow

$196.00M

Financial Statements

Beta

Revenue	$7.06B
Cost of Revenue	$3.99B
Gross Profit	$3.07B
R&D Expenses	$432.00M
SG&A Expenses	$1.21B
Operating Income	$2.25B
Interest Expense	$93.00M
Net Income	$1.02B
EPS (Basic)	$1.16
EPS (Diluted)	$1.16
Shares Outstanding (Basic)	875.01M
Shares Outstanding (Diluted)	879.18M

Key Highlights

1Net sales for the six months ended June 30, 2016, were $14.5 billion, a 3% decrease year-over-year, largely attributable to a negative currency impact from a stronger U.S. dollar.
2Income from continuing operations after taxes for the six months ended June 30, 2016, rose 13% to $2.3 billion, driven by a $369 million gain from the sale of DuPont (Shenzhen) Manufacturing Limited and cost savings from the 2016 restructuring plan.
3The proposed merger with The Dow Chemical Company was progressing, with DuPont's shareholder vote approving the merger agreement on July 20, 2016, and closing anticipated in the second half of 2016.
4Selling, General, and Administrative (SG&A) expenses decreased by 6% for the six months ended June 30, 2016, reflecting cost savings from the 2016 restructuring plan and a stronger U.S. dollar.
5Research and Development (R&D) expenses also decreased by approximately 13% for the six months ended June 30, 2016, attributed to restructuring efforts and currency effects.
6The company has $5.2 billion in cash, cash equivalents, and marketable securities as of June 30, 2016, a decrease from $6.2 billion at the end of 2015, primarily due to funding seasonal working capital needs.
7Significant contingent liabilities and ongoing litigation exist, most notably related to PFOA matters, though management currently does not anticipate a material adverse effect on the company's financial position or results of operations.

EIDP, Inc. Quarterly Report for Q2 Ended Jun 30, 2016

Summary

Financial Highlights

Key Highlights

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