Summary
E. I. du Pont de Nemours and Company (DuPont) reported its third-quarter 2016 financial results, indicating a slight increase in net sales to $4.9 billion, driven by volume growth which offset lower prices. While segment operating earnings showed improvement across most segments due to cost savings and higher volumes, the company's income from continuing operations after taxes significantly decreased to $13 million from $131 million in the prior year's quarter. This decline was largely influenced by substantial charges, including a $158 million impairment of intangible assets and $122 million in merger-related costs associated with the proposed merger with Dow Chemical. For the nine-month period, net sales were down 2% due to currency headwinds and lower prices, but income from continuing operations after taxes saw a notable increase of 7% to $2.3 billion, benefiting from ongoing cost savings initiatives, including the 2016 Global Cost Savings and Restructuring Plan which is on track to deliver significant reductions. Liquidity remains a focus, with cash, cash equivalents, and marketable securities at $5.5 billion, though total debt increased primarily due to borrowings under new credit facilities and seasonal working capital needs. Investors should monitor the progress of the pending merger with Dow, which is progressing through regulatory reviews with an expected closing in the first quarter of 2017, and the subsequent intended separation of businesses.
Financial Highlights
52 data points| Revenue | $4.92B |
| Cost of Revenue | $3.09B |
| Gross Profit | $1.83B |
| R&D Expenses | $410.00M |
| SG&A Expenses | $1.02B |
| Operating Income | $2.25B |
| Interest Expense | $93.00M |
| Net Income | $6.00M |
| Shares Outstanding (Basic) | 874.29M |
| Shares Outstanding (Diluted) | 879.39M |
Key Highlights
- 1Net sales for the third quarter of 2016 were $4.9 billion, a 1% increase year-over-year, driven by a 3% volume increase partially offset by a 2% decrease in local prices.
- 2Income from continuing operations after taxes was $13 million for the third quarter of 2016, a significant decrease from $131 million in the prior year's quarter.
- 3The company incurred significant charges in Q3 2016, including a $158 million impairment of indefinite-lived intangible assets and $122 million in costs related to the proposed merger with Dow Chemical.
- 4For the nine months ended September 30, 2016, income from continuing operations after taxes increased by 7% to $2.3 billion.
- 5The 2016 Global Cost Savings and Restructuring Plan is on track to deliver $730 million in cost reductions for the full year 2016.
- 6Total debt increased by $2.5 billion to $11.4 billion as of September 30, 2016, primarily due to borrowings under new credit facilities.
- 7The proposed merger with Dow Chemical is progressing, with an expected closing in the first quarter of 2017, subject to regulatory approvals.