8-KEarnings & ResultsRegulation FD

EIDP, Inc. 8-K Report, Financial Results (Oct 9, 2012)

Filed October 9, 2012For Securities:CTA-PBCTA-PA

Summary

EIDP, Inc. (CTA-PB) filed an 8-K on October 9, 2012, to provide preliminary financial information ahead of its third quarter 2012 earnings release. The primary focus of this filing is to present earnings per share (EPS) from continuing operations and discontinued operations, excluding significant items, for the first and second quarters of 2012. This is to help investors adjust to the company's new reporting structure following the announced divestiture of DuPont Performance Coatings (DPC). The company will report its third quarter 2012 results on October 23, 2012, on a continuing operations basis, thus excluding DPC. The provided EPS figures offer a look at the underlying performance of the core business and its divested segments, allowing investors to better track trends and make comparisons as the company transitions.

Key Highlights

  • 1DuPont will report its Q3 2012 results on October 23, 2012, on a continuing operations basis.
  • 2The company is excluding the DuPont Performance Coatings (DPC) business from its Q3 reporting due to a planned divestiture.
  • 3The filing provides Diluted EPS from continuing operations, excluding significant items, for Q1 2012 ($1.51) and Q2 2012 ($1.40).
  • 4Diluted EPS from discontinued operations (excluding significant items) was $0.10 for Q1 2012 and $0.08 for Q2 2012.
  • 5Total Diluted EPS, excluding significant items, was $1.61 for Q1 2012 and $1.48 for Q2 2012.
  • 6The filing includes a reconciliation of GAAP EPS from continuing operations, showing $1.47 for Q1 2012 and $1.17 for Q2 2012.
  • 7Management believes non-GAAP measures provide meaningful insight into ongoing operating results.

Frequently Asked Questions

This 8-K filing is providing investors with advance information on EPS from continuing and discontinued operations, excluding significant items, for the first two quarters of 2012. This is to help investors understand the company's financial presentation going forward, especially as it transitions to reporting on a continuing operations basis after the divestiture of DuPont Performance Coatings (DPC).

The planned divestiture of DPC means that DuPont's Q3 2012 results will be reported on a continuing operations basis, excluding the financial performance and results of DPC. This 8-K helps to illustrate how the company will present its financials by showing historical data segmented between continuing and discontinued operations.

The filing mentions 'significant items' that are excluded from certain EPS calculations. Management believes that excluding these items provides a more meaningful view of the company's ongoing operating performance. Specific details on what constitutes these 'significant items' are referred to in the company's earlier earnings news releases from April 19, 2012, and July 24, 2012.

For Q1 2012, GAAP Diluted EPS from continuing operations was $1.47, while the non-GAAP version (excluding significant items) was $1.51. For Q2 2012, GAAP Diluted EPS from continuing operations was $1.17, compared to $1.40 on a non-GAAP basis. The difference ($0.04 in Q1 and $0.23 in Q2) represents the impact of 'significant items' that management chooses to exclude for a view of ongoing operations.