8-KOther Events

EIDP, Inc. 8-K Report (Apr 23, 2002)

Filed April 23, 2002For Securities:CTA-PBCTA-PA

Summary

E. I. du Pont de Nemours and Company (DuPont) reported first quarter 2002 earnings of $0.48 per share, with underlying earnings at $0.55 per share, meeting its recently improved outlook. While consolidated sales decreased by 10% year-over-year to $6.14 billion, segment sales were down 11% to $6.76 billion. This decline was attributed to a 2% decrease in worldwide volume, a 4% negative impact from currency fluctuations, and a 4% reduction in local prices. Encouragingly, excluding seasonal increases in Agriculture & Nutrition, U.S. volumes saw a 6% sequential increase, indicating positive momentum following the economic downturn. Strategic initiatives are underway, including the realignment of businesses into five market- and technology-focused growth platforms and the formation of DuPont Textiles & Interiors (DTI) as a separate subsidiary, with a target completion date of year-end 2003. The company also announced a significant business agreement with Monsanto, involving cross-licensing of technologies and the dismissal of all pending litigation between the two entities. DuPont anticipates continued sequential volume improvements and benefit from lower raw material costs in the second quarter, though this may be partially offset by a strong dollar and challenging pricing environment. Underlying earnings per share for the second quarter are expected to show double-digit improvement year-over-year and be roughly in line with the first quarter's $0.55.

Key Highlights

  • 1First quarter 2002 underlying earnings were $0.55 per share, meeting the company's improved outlook.
  • 2Consolidated sales were $6.14 billion, down 10% from the prior year, with segment sales down 11% to $6.76 billion.
  • 3Worldwide sales volumes declined by 2%, with U.S. volumes showing a positive 6% sequential increase.
  • 4Strategic reorganization into five growth platforms and the planned separation of DuPont Textiles & Interiors (DTI) by end of 2003.
  • 5A broad business agreement was reached with Monsanto, including technology cross-licenses and the resolution of all pending litigation.
  • 6Reported net income was $479 million ($0.48 per share), including $72 million in pre-tax one-time charges.
  • 7Second quarter underlying earnings per share are projected to improve double-digits year-over-year and be comparable to the first quarter's $0.55.

Frequently Asked Questions

DuPont reported first quarter 2002 underlying earnings of $0.55 per share and reported earnings of $0.48 per share. Consolidated sales were $6.14 billion, a decrease of 10% compared to the first quarter of 2001. Segment sales also declined by 11% to $6.76 billion.

The decline in sales was primarily driven by a 2% decrease in worldwide volume, a 4% negative impact from currency fluctuations, and a 4% reduction in local prices. The company noted that while U.S. volumes showed sequential improvement, declines in Asia and Latin America offset this, resulting in flat worldwide sequential volumes.

DuPont is reorganizing its businesses into five market- and technology-focused growth platforms. Additionally, the company is forming DuPont Textiles & Interiors (DTI) as a separate subsidiary with a goal to separate it from the company by the end of 2003. They have also entered into a significant business agreement with Monsanto, which includes cross-licensing of technologies and resolution of all pending litigation.

DuPont anticipates sequential volume momentum and benefits from lower raw material costs in the second quarter. However, these positives are expected to be partially mitigated by a continued strong U.S. dollar and a difficult pricing environment. The company projects second quarter underlying earnings per share to improve by double digits compared to the prior year and to be approximately equal to the first quarter's $0.55 per share.