Summary
E.I. du Pont de Nemours and Company (DuPont) reported fiscal second quarter 2017 results with net sales of $7.4 billion, a 5% increase year-over-year, driven primarily by a 6% volume increase across its segments. Despite the top-line growth, income from continuing operations after taxes declined to $0.9 billion from $1.0 billion in the prior year, impacted by significant merger-related and restructuring charges totaling $376 million pre-tax. The company is actively navigating a transformative period, highlighted by the pending merger with Dow Chemical and subsequent intended separations of businesses. Regulatory approvals for the merger are progressing, with conditional clearance obtained in Europe and the U.S., Brazil, Canada, and China. Significant progress has also been made on the divestiture of certain crop protection assets to FMC Corporation as part of the merger conditions. While these strategic maneuvers present complexity, the underlying operational performance shows resilience with volume-driven growth across key segments like Agriculture and Electronics & Communications.
Financial Highlights
51 data points| Revenue | $7.42B |
| Cost of Revenue | $4.19B |
| Gross Profit | $3.23B |
| R&D Expenses | $441.00M |
| SG&A Expenses | $1.35B |
| Operating Income | $2.18B |
| Interest Expense | $99.00M |
| Net Income | $862.00M |
| EPS (Basic) | $0.99 |
| EPS (Diluted) | $0.99 |
| Shares Outstanding (Basic) | 868.48M |
| Shares Outstanding (Diluted) | 872.75M |
Key Highlights
- 1Net sales increased by 5% to $7.4 billion for the three months ended June 30, 2017, compared to the prior year, driven by a 6% volume increase.
- 2Income from continuing operations after taxes was $0.9 billion for the quarter, a decrease from $1.0 billion in the prior year, impacted by significant merger and restructuring costs.
- 3The company incurred $376 million in pre-tax charges related to the planned merger with Dow Chemical and related activities ($216 million) and restructuring programs ($160 million).
- 4The Agriculture segment showed strong performance with a 7% net sales increase in the quarter, driven by volume growth in insecticides, fungicides, and soybeans.
- 5Electronics & Communications segment sales grew by 11% in the quarter due to increased demand in consumer electronics and semiconductor markets.
- 6As of June 30, 2017, the company had $3.254 billion in cash and cash equivalents.
- 7The company is progressing with the planned merger with Dow Chemical and the divestiture of certain crop protection assets to FMC Corporation, with expected closing dates in late 2017 for both transactions, subject to regulatory approvals.