8-KOther Events

EIDP, Inc. 8-K Report (Jun 15, 2001)

Filed June 15, 2001For Securities:CTA-PBCTA-PA

Summary

E.I. du Pont de Nemours and Company (DuPont) filed an 8-K report on June 15, 2001, detailing the sale of selected U.S. Polyester Enterprise businesses and manufacturing assets to Alpek S.A. de C.V. This divestiture includes DuPont's U.S. terephthalic acid (TPA) business and its polyethylene terephthalate (PET) container resins business, along with associated manufacturing facilities in North Carolina. The company also plans to exit its polyester staple fiber joint venture with Alpek by mid-2002. This strategic move is intended to reshape DuPont's polyester investments and maximize shareholder value, as stated by CFO Gary M. Pfeiffer. The sale is expected to result in a one-time, non-cash charge of $0.15 to $0.17 per share to earnings in the second quarter of 2001, reflecting the write-down of assets to fair value. In a separate but related transaction, DuPont will increase its equity stake in its Mexican joint venture, Fielmex, which produces Lycra® elastane fiber, to 50%.

Key Highlights

  • 1DuPont is selling its U.S. Terephthalic Acid (TPA) and PET container resins businesses to Alpek S.A. de C.V.
  • 2Manufacturing assets in North Carolina (Cape Fear and Cedar Creek sites) are included in the sale.
  • 3DuPont will also exit its polyester staple fiber joint venture with Alpek by mid-2002.
  • 4The sale is part of DuPont's strategy to reshape its polyester investments and enhance shareholder value.
  • 5A one-time, non-cash charge of $0.15-$0.17 per share is anticipated for the second quarter of 2001.
  • 6DuPont is increasing its equity in the Fielmex joint venture (Lycra® production) to 50%.

Frequently Asked Questions

The primary purpose of this 8-K filing is to announce DuPont's definitive agreement to sell certain U.S. Polyester Enterprise businesses and manufacturing assets to Alpek S.A. de C.V., along with other related business arrangements and disclosures.

Investors should anticipate a one-time, non-cash charge of approximately $0.15 to $0.17 per share to earnings in the second quarter of 2001. This charge is due to the write-down of the assets being sold to their fair value.

The increase in DuPont's equity in Fielmex, a Mexican joint venture producing Lycra® elastane fiber, from 40% to 50% signifies an enhanced access to DuPont's stretch technologies for Fielmex and aligns DuPont's ownership with its 50% stake in a related Mexican nylon joint venture.

Yes, DuPont also announced plans to exit its polyester staple fiber joint venture with Alpek by mid-year 2002, which was originally formed in 1999.