Summary
E. I. du Pont de Nemours and Company (DuPont) reported net sales of $7.7 billion for the first quarter of 2017, an increase of 5% compared to the prior year, driven by a 4% increase in volume and a 1% rise in local prices. Income from continuing operations after taxes was $1.3 billion, up from $1.2 billion in the same period last year. The company incurred significant merger-related costs and restructuring charges, totaling $322 million pre-tax, which impacted profitability. A notable event was the $670.7 million settlement of the PFOA multi-district litigation, with DuPont and Chemours splitting the cost, and DuPont recording a $335 million charge to discontinued operations. The company is actively progressing towards its all-stock merger of equals with Dow Chemical Company, which was amended to extend the termination date to August 31, 2017. Regulatory approvals are progressing, including conditional clearance from the European Commission requiring the divestiture of certain crop protection assets to FMC Corporation. The company also reported $5.9 billion in cash, cash equivalents, and marketable securities, with total debt increasing to $10.4 billion primarily due to increased borrowings for seasonal working capital needs.
Financial Highlights
50 data points| Revenue | $7.74B |
| Cost of Revenue | $4.37B |
| Gross Profit | $3.37B |
| R&D Expenses | $416.00M |
| SG&A Expenses | $1.26B |
| Operating Income | $1.33B |
| Interest Expense | $84.00M |
| Net Income | $1.11B |
| EPS (Basic) | $1.28 |
| EPS (Diluted) | $1.27 |
| Shares Outstanding (Basic) | 866.52M |
| Shares Outstanding (Diluted) | 871.08M |
Key Highlights
- 1Net sales increased by 5% to $7.7 billion year-over-year, driven by a 4% volume increase and 1% higher local prices.
- 2Income from continuing operations after taxes rose to $1.3 billion from $1.2 billion in the prior year's first quarter.
- 3The company recorded $322 million in pre-tax charges related to merger costs and restructuring, including $170 million for the planned merger with Dow.
- 4A significant PFOA multi-district litigation settlement of $670.7 million was reached, with DuPont and Chemours sharing the cost. DuPont recorded a $335 million charge related to its portion.
- 5The merger with Dow Chemical has an extended termination date of August 31, 2017, with conditional regulatory clearance received from the European Commission.
- 6DuPont is divesting certain crop protection assets to FMC Corporation as part of the merger conditions, while simultaneously acquiring FMC's Health and Nutrition segment.
- 7Cash, cash equivalents, and marketable securities remained strong at $5.9 billion, though total debt increased to $10.4 billion, mainly due to seasonal working capital needs.