8-KOther Events

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

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

Summary

E. I. du Pont de Nemours and Company (DuPont) reported strong third quarter 2002 earnings, with underlying earnings per share (EPS) of $0.40, a significant increase from $0.12 in the prior year's third quarter. This improvement was driven by a 76% increase in after-tax operating income (ATOI) before one-time items, primarily due to higher sales volumes across most segments, lower raw material and fixed costs, and a lower effective income tax rate. Segment sales, on a comparable business basis, rose 4% with a 6% increase in volume, although this was partially offset by a 2% decrease in selling prices. The company anticipates continued economic growth in the fourth quarter, with expectations for underlying full-year EPS to reach approximately $2.00, though subject to market volatility and geopolitical risks.

Key Highlights

  • 1Third quarter underlying EPS increased significantly to $0.40 from $0.12 in Q3 2001.
  • 2Segment sales grew 4% on a comparable business basis, driven by a 6% increase in volume across most businesses and geographic regions.
  • 3After-tax operating income (ATOI) before one-time items surged 76% year-over-year, reflecting volume gains, cost reductions, and tax benefits.
  • 4Performance Materials, Coatings & Color Technologies, and Textiles & Interiors segments showed significant earnings improvements.
  • 5Company outlook projects full-year underlying EPS of approximately $2.00, assuming continued economic growth.
  • 6Selling prices remained challenging, declining 2% globally, with notable weakness in Textiles & Interiors and Electronic & Communication Technologies.

Frequently Asked Questions

The primary drivers were increased sales volumes across most business segments, lower raw material and fixed costs, and a lower effective income tax rate. These factors contributed to a significant 76% increase in after-tax operating income (ATOI) before one-time items.

On a comparable business basis, segment sales increased by 4%, driven by a 6% rise in global volume. However, this was partially offset by a 2% decrease in U.S. dollar selling prices.

DuPont expects economic growth to continue in the fourth quarter, though at a moderating pace. The company maintained its prior outlook for underlying fourth quarter earnings per share to be about triple those of the prior year, projecting full-year underlying EPS of approximately $2.00. However, they noted potential risks from market volatility and geopolitical factors.

Yes, the third quarter included several one-time items. Notably, there was a benefit from the sale of the Performance Materials - Clysar® business, changes in restructuring estimates, a settlement related to the Pioneer/Monsanto MON 810 corn litigation, and a tax benefit from a pharmaceutical divestiture. These items resulted in a net positive impact of $0.07 per share for the quarter.