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DuPont Reports First Quarter Earnings Growth of Over 20 Percent
Date:4/22/2008

Sales Increase 9 Percent with Strong Growth in Agriculture and Emerging

Markets
WILMINGTON, Del., April 22 /PRNewswire-FirstCall/ --

Highlights

-- First quarter 2008 earnings were $1.31 per share compared to $1.01 in

the prior year. Excluding a significant item charge in the prior year,

earnings per share increased 22 percent.

-- Sales grew 9 percent to $8.6 billion, reflecting 6 percent higher local

selling prices and 5 percent currency benefit, partly offset by

1 percent lower volume and a net 1 percent reduction principally due to

a chemical business divestiture. Local selling price gains more than

offset higher ingredient costs.

-- Sales in Agriculture & Nutrition increased 18 percent and earnings grew

21 percent, reflecting strong demand for the company's production

agriculture products.

-- Sales in emerging markets grew 25 percent, led by Brazil, China, India

and Eastern Europe.

-- Reduced demand in the United States for the company's products sold

into construction and motor vehicle markets moderated results in the

Safety & Protection and Coatings & Color Technologies segments.

-- Segment pre-tax operating income (PTOI) increased to $1.9 billion.

Excluding significant items, segment PTOI margin improved 1 percentage

point to 21 percent.

"We're off to a strong start for the year," said DuPont Chairman and CEO Charles O. Holliday, Jr. "Our investments in agriculture and emerging markets enabled us to capitalize on robust growth in those areas which, when combined with gains from our productivity improvement programs, more than offset higher ingredient costs and weakness in certain U.S. markets. We'll continue to drive faster revenue growth from science-based, high value-added products and greater productivity."

"Despite the impact of w 10,764 9,945

Accumulated other comprehensive loss (668) (794)

Common stock held in treasury, at cost

(87,041,000 shares at March 31, 2008

and December 31, 2007) (6,727) (6,727)

Total stockholders' equity 12,122 11,136

Total $36,228 $34,131

E. I. du Pont de Nemours and Company

Condensed Consolidated Statements of Cash Flows

(Dollars in millions)

SCHEDULE A (continued)

Three Months Ended

March 31,

2008 2007

Cash used for operating activities $(951) $(240)

Investing activities

Purchases of property, plant and equipment (410) (273)

Investments in affiliates (3) (11)

Other investing activities - net (107) 15

Cash used for investing activities (520) (269)

Financing activities

Dividends paid to stockholders (372) (347)

Net increase in borrowings 1,611 41

Other financing activities - net 23 (119)

Cash provided by (used for) financing

activities 1,262 (425)

Effect of exchange rate changes on cash (2) 3

Decrease in cash and cash equivalents (211) (931)

Cash and cash equivalents at beginning

of period 1,305 1,814

Cash and cash equivalents at end of period $1,094 $883

E. I. du Pont de Nemours and Company

Schedules of Significant Items

(Dollars in millions, except per share amounts)

SCHEDULE B

SIGNIFICANT ITEMS

Pre-tax After-tax ($ Per Share)

2008 2007 2008 2007 2008 2007

1st Quarter

Litigation related item (a) $- $(52) $- $(52) $- $(0.06)

Total $- $(52) $- $(52) $- $(0.06)

(a) First quarter 2007 includes a net $52 charge in Cost of goods sold and

other operating charges for litigation in the Performance Materials

segment in connection with the elastomers antitrust matter.

See Schedule C for detail by segment.

E. I. du Pont de Nemours and Company

Consolidated Segment Information

(Dollars in millions)

SCHEDULE C

Three Months Ended

March 31,

SEGMENT SALES (1) 2008 2007

Agriculture & Nutrition $2,883 $2,450

Coatings & Color Technologies 1,645 1,559

Electronic & Communication Technologies 1,026 920

Performance Materials 1,713 1,589

Safety & Protection 1,365 1,370

Other 40 43

Total Segment sales $8,672 $7,931

Elimination of transfers (97) (86)

Consolidated net sales $8,575 $7,845

(1) Sales for the reporting segments include transfers.

E. I. du Pont de Nemours and Company

Consolidated Segment Information

(Dollars in millions)

SCHEDULE C (continued)

Three Months Ended

March 31,

PRETAX OPERATING INCOME/(LOSS) (PTOI) 2008 2007

Agriculture & Nutrition $786 $651

Coatings & Color Technologies 190 194

Electronic & Communication Technologies 175 124

Performance Materials 219 150

Safety & Protection 272 291

Total Growth Platforms 1,642 1,410

Pharmaceuticals 235 225

Other (26) (56)

Total Segment PTOI $1,851 $1,579

Net exchange losses (1) (155) (28)

Corporate expenses & net interest (226) (239)

Income before income taxes and

minority interests $1,470 $1,312

Three Months Ended

March 31,

SIGNIFICANT ITEMS BY SEGMENT (PRE-TAX) (2) 2008 2007

Agriculture & Nutrition $- $-

Coatings & Color Technologies - -

Electronic & Communication Technologies - -

Performance Materials (a) - (52)

Safety & Protection - -

Other - -

Total Significant Items by segment $- $(52)

Three Months Ended

March 31,

PTOI EXCLUDING SIGNIFICANT ITEMS 2008 2007

Agriculture & Nutrition $786 $651

Coatings & Color Technologies 190 194

Electronic & Communication Technologies 175 124

Performance Materials 219 202

Safety & Protection 272 291

Total Growth Platforms 1,642 1,462

Pharmaceuticals 235 225

Other (26) (56)

Total Segment PTOI excluding

Significant Items $1,851 $1,631

(1) Net after-tax exchange activity for the three months ended March

31, 2008 and 2007 were losses of $14 and $18, respectively. Gains

and losses resulting from the company's hedging program are largely

offset by associated tax effects.

(2) Refer to the Notes to Schedules of Significant Items for additional

information.

E. I. du Pont de Nemours and Company

Reconciliation of Non-GAAP Measures

(Dollars in millions, except per share amounts)

SCHEDULE D

Summary of Earnings Comparisons

Three Months Ended

March 31,

%

2008 2007 Change

Segment PTOI $1,851 $1,579 17%

Significant Items charge included in

PTOI (per Schedule B) - 52

Segment PTOI excluding Significant Items $1,851 $1,631 13%

Net Income $1,191 $945 26%

Significant Items charge included in

Net Income (per Schedule B) - 52

Net Income excluding Significant Items $1,191 $997 19%

EPS $1.31 $1.01 30%

Significant Items charge included in

EPS (per Schedule B) - 0.06

EPS excluding Significant Items $1.31 $1.07 22%

Average number of diluted shares

outstanding 906,193,000 933,267,000 -2.9%

Calculation of Segment PTOI as a Percent of Segment Sales

Three Months Ended

March 31,

%

2008 2007 Change

Segment PTOI excluding Significant Items $1,851 $1,631 13%

Segment sales 8,672 7,931 9%

Segment PTOI as a percent of segment sales 21.3% 20.6%

E. I. du Pont de Nemours and Company

Reconciliation of Non-GAAP Measures

(Dollars in millions, except per share amounts)

SCHEDULE D (continued)

Reconciliations of Adjusted EBIT /

Adjusted EBITDA to Consolidated Income Statement

Three Months Ended

March 31,

2008 2007

Income before income taxes and

minority interests $1,470 $1,312

Less: Minority interest in earnings

of consolidated subsidiaries (1) (5) (4)

Add: Net interest expense (2) 75 87

Adjusted EBIT 1,540 1,395

Add: Depreciation and amortization (3) 326 337

Adjusted EBITDA $1,866 $1,732

(1) Excludes income taxes.

(2) Includes interest expense plus amortization of capitalized interest

less miscellaneous interest.

(3) Excludes amortization of capitalized interest.

Reconciliations of Fixed Costs as a

Percent of Sales

Three Months Ended

March 31,

2008 2007

Total charges and expenses -

consolidated income statements $7,300 $6,849

Remove:

Interest expense (80) (99)

Variable costs (1) (4,140) (3,743)

Significant Items - charge (2) - (52)

Fixed costs $3,080 $2,955

Consolidated net sales $8,575 $7,845

Fixed costs as a percent of

consolidated net sales 35.9% 37.7%

(1) Includes variable manufacturing costs, freight, commissions and

other selling expenses which vary with the volume of sales.

(2) See Schedule B for detail of Significant Items.

E. I. du Pont de Nemours and Company

Reconciliation of Non-GAAP Measures

(Dollars in millions, except per share amounts)

SCHEDULE D (continued)

Reconciliation of Earnings Per

Share (EPS) Outlook

Year Ended Quarter Ended

December 31, June 30,

2008 2007 2008 2007

Outlook Actual Outlook Actual

Earnings per share - excluding

Significant Items $3.40 to $3.55 $3.28 ~ $1.05 $1.04

Significant Items included in EPS:

Impairment charge - Performance

Materials - (0.15) - -

Litigation related charges -

Other - (0.03) - -

Litigation related charges, net -

Performance Materials - (0.01) - -

Corporate tax-related items - 0.13 - -

Net charge for Significant Items - (0.06) - -

Reported EPS $3.40 to $3.55 $3.22 ~ $1.05 1.04

E. I. du Pont de Nemours and Company

Reconciliation of Non-GAAP Measures

(Dollars in millions, except per share amounts)

SCHEDULE D (continued)

Exchange Gains/Losses

The company routinely uses forward exchange contracts to offset its net

exposures, by currency, related to the foreign currency denominated

monetary assets and liabilities of its operations. The objective of this

program is to maintain an approximately balanced position in foreign

currencies in order to minimize, on an after-tax basis, the effects of

exchange rate changes. The net pretax exchange gains and losses are

recorded in Other income, net on the Consolidated Income Statements and

larger offset by the associated tax impact.

Three Months Ended March 31,

2008 2007

Subsidiary/Affiliate Monetary

Position (Gain)/Loss

Pretax exchange (gains)/losses

(includes equity affiliates) $(150) $(25)

Local tax (benefits)/expenses (34) 8

Net after-tax impact from subsidiary

exchange gains/losses $(184) $(17)

Hedging Program (Gain)/Loss

Pretax exchange (gains)/losses $305 $53

Tax (benefits)/expenses (107) (18)

Net after-tax impact from hedging

program exchange gains/losses $198 $35

Total Exchange (Gain)/Loss

Pretax exchange (gains)/losses $155 $28

Tax (benefits)/expenses (141) (10)

Net after-tax exchange (gains)/losses $14 $18

As shown above, the "Total Exchange (Gain)/Loss" is the sum of the

"Subsidiary/Affiliate Monetary Position (Gain)/Loss" and the "Hedging

Program (Gain)/Loss."

Reconciliation of Base Income Tax Rate to Effective Income Tax Rate

Base income tax rate is defined as the effective income tax rate less the

effect of exchange gains/losses, as defined above, and significant items.

Three Months Ended March 31,

2008 2007

Income before income taxes and

minority interests $1,470 $1,312

Add: Significant Items - charge - 52

Net exchange losses 155 28

Income before income taxes, Significant

Items, exchange gains/losses and

minority interests $1,625 $1,392

Provision for income taxes $273 $365

Add: Tax benefit on Significant Items - -

Tax benefit on exchange gains/losses 141 10

Provision for income taxes, excluding taxes

on Significant Items and exchange

gains/losses $414 $375

Effective income tax rate 18.6% 27.8%

Significant Items effect 0.0% (1.0)%

Tax rate before significant items 18.6% 26.8%

Exchange gains/losses effect 6.9% 0.1%

Base income tax rate 25.5% 26.9%

eaker demand in certain U.S. markets, this quarter is a good first step toward achieving our accelerated growth objectives," Holliday said. "We're taking the right actions in attractive markets to maximize value for shareholders."

Global Consolidated Sales

Consolidated net sales increased 9 percent to $8.6 billion in the first quarter. Sales outside the United States represented 62 percent of total sales and increased 16 percent, while sales in the U.S. were equal to last year. A summary of first quarter 2008 worldwide and regional sales performance is shown below.

Three Months Ended

March 31, 2008 Percentage Change Due to:

Local

% Currency Currency Portfolio

(Dollars in billions) $ Change Price Effect Volume /Other

U.S. $3.3 - 6 - (5) (1)

Europe 2.9 18 5 9 4 -

Asia Pacific 1.3 11 4 4 6 (3)

Canada & Latin America 1.1 15 5 11 (1) -

Total Consolidated Sales $8.6 9 6 5 (1) (1)

Net Income and Earnings Per Share

Net income for the first quarter 2008 was $1,191 million, or $1.31 per share. First quarter 2007 net income was $945 million, or $1.01 per share, including a significant item charge of $52 million, or $.06 per share. The table below shows the variances in first quarter 2008 earnings per share (EPS) versus first quarter 2007.

EPS Analysis

EPS

1st Quarter 2007 - Reported $1.01

Less: Significant items (0.06)

EPS excluding significant items 1.07

Local prices 0.36

Variable costs* (0.28)

Volume (0.01)

Fixed costs* (0.03)

Currency 0.11

Pharmaceuticals 0.01

Tax 0.03

Lower interest expense 0.02

Lower shares 0.03

1st Quarter 2008 - Reported $1.31

*Excludes volume and currency impact

The $0.03 per share variance in fixed costs, noted above, includes estimated savings from cost productivity projects during the first quarter which partially offset cost increases from growth investments and inflation. Fixed costs as a percent of sales decreased to 35.9 percent from 37.7 percent in the prior year.

Business Segment Performance

Segment sales and related percentage variances for first quarter 2008 versus the prior year quarter are shown in the table below.

SEGMENT SALES* Three Months Ended Percentage Change

(Dollars in billions) March 31, 2008 Due to:

USD Portfolio

$ % Change Price Volume and Other

Agriculture & Nutrition $2.9 18 15 4 (1)

Coatings & Color Technologies 1.6 6 8 (2) -

Electronic & Communication

Technologies 1.0 12 9 2 1

Performance Materials 1.7 8 12 (3) (1)

Safety & Protection 1.4 - 7 (3) (4)

* Segment sales include transfers

Segment pre-tax operating income (PTOI) for the first quarter 2008 was $1,851 million versus $1,579 million in the first quarter 2007. Excluding a prior-year significant item charge, segment PTOI increased 13 percent.

PRE-TAX OPERATING INCOME

Three Months Ended March 31, 2008

% Change vs.

(Dollars in millions) 2008 2007 2007

Agriculture & Nutrition $786 $651 21

Coatings & Color Technologies 190 194 (2)

Electronic & Communication

Technologies 175 124 41

Performance Materials* 219 150 46

Safety & Protection 272 291 (7)

Total Growth Platforms 1,642 1,410 16

Pharmaceuticals 235 225 4

Other (26) (56) NA

Total Segments $1,851 $1,579 17

* 1st quarter 2007 includes a significant item charge of $52.

The following are business segment highlights comparing first quarter 2008 results to first quarter 2007.

Agriculture & Nutrition

-- Sales increased $433 million, or 18 percent, to $2.9 billion,

reflecting strong global demand favoring seed technology and crop

protection products.

-- PTOI increased 21 percent to $786 million, reflecting increased sales

of higher value products net of planned growth investments and higher

input costs.

Coatings & Color Technologies

-- Sales increased 6 percent to $1.6 billion as weakness in North American

motor vehicle and construction markets was more than offset by higher

USD selling price outside North America.

-- PTOI was $190 million compared with $194 million in the prior-year

quarter. PTOI reflects pricing gains in refinish and industrial

coatings and benefits from cost productivity and currency. These gains

were offset by lower volumes and the absence of a prior-year quarter

$16 million hurricane-related insurance recovery.

Electronic & Communication Technologies

-- Sales grew 12 percent to $1.0 billion and PTOI increased 41 percent to

$175 million, reflecting strong demand for refrigerants and

photovoltaic products.

Performance Materials

-- Sales grew 8 percent to $1.7 billion from continued strength in Asian

and European automotive and packaging materials markets.

-- PTOI increased 46 percent to $219 million in the quarter. Excluding a

$52 million significant item charge in the prior year, PTOI increased

8 percent. Sales improvement was partially offset by higher cost

ingredients and costs associated with manufacturing process

consolidations.

Safety & Protection

-- Sales were $1.4 billion, equal to the prior-year quarter. Excluding

the impact of a chemical business divestiture, sales grew 4 percent.

The impact of positive USD pricing and growth in emerging markets was

largely offset by lower volumes in U.S. construction markets.

-- PTOI was $272 million, down 7 percent reflecting lower volume, higher

costs associated with growth investments and the impact of a divested

business.

Additional information on segment performance is available on the DuPont Investor Center website at http://www.dupont.com.

Outlook

The company today reaffirmed its full-year 2008 earnings outlook of $3.40 to $3.55 per share and its first half 2008 earnings outlook for growth of about 10 percent, excluding significant items. The company also said it continues to expect second quarter earnings of about $1.05 per share. For the remainder of 2008, the company expects that slowing demand in U.S. markets, including construction and motor vehicle, will offset growth in agriculture and other markets outside the United States.

Use of Non-GAAP Measures

Management believes that measures of income excluding significant items ("non-GAAP" information) are meaningful to investors because they provide insight with respect to ongoing operating results of the company. Such measurements are not recognized in accordance with generally accepted accounting principles (GAAP) and should not be viewed as an alternative to GAAP measures of performance. Reconciliations of non-GAAP measures to GAAP are provided in Schedule D.

DuPont (NYSE: DD) is a science-based products and services company. Founded in 1802, DuPont puts science to work by creating sustainable solutions essential to a better, safer, healthier life for people everywhere. Operating in more than 70 countries, DuPont offers a wide range of innovative products and services for markets including agriculture and food; building and construction; communications; and transportation.

Forward-Looking Statements: This news release contains forward-looking statements based on management's current expectations, estimates and projections. All statements that address expectations or projections about the future, including statements about the company's strategy for growth, product development, market position, expected expenditures and financial results are forward-looking statements. Some of the forward-looking statements may be identified by words like "expects," "anticipates," "plans," "intends," "projects," "indicates," and similar expressions. These statements are not guarantees of future performance and involve a number of risks, uncertainties and assumptions. Many factors, including those discussed more fully elsewhere in this release and in documents filed with the Securities and Exchange Commission by DuPont, particularly its latest annual report on Form 10-K and quarterly report on Form 10-Q, as well as others, could cause results to differ materially from those stated. These factors include, but are not limited to changes in the laws, regulations, policies and economic conditions, including inflation, interest and foreign currency exchange rates, of countries in which the company does business; competitive pressures; successful integration of structural changes, including restructuring plans, acquisitions, divestitures and alliances; cost of raw materials, research and development of new products, including regulatory approval and market acceptance; seasonality of sales of agricultural products; and severe weather events that cause business interruptions, including plant and power outages, or disruptions in supplier and customer operations.

E. I. du Pont de Nemours and Company

Consolidated Income Statements

(Dollars in millions, except per share amounts)

SCHEDULE A

Three Months Ended March 31,

2008 2007

Net sales $8,575 $7,845

Other income, net 195 316

Total 8,770 8,161

Cost of goods sold and other operating

charges (a) 5,956 5,594

Selling, general and administrative expenses 934 846

Research and development expense 330 310

Interest expense 80 99

Total 7,300 6,849

Income before income taxes and minority

interests 1,470 1,312

Provision for income taxes 273 365

Minority interests in earnings of

consolidated subsidiaries 6 2

Net income $1,191 $945

Basic earnings per share of common stock $1.32 $1.02

Diluted earnings per share of common stock $1.31 $1.01

Dividends per share of common stock $0.41 $0.37

Average number of shares outstanding used

in earnings per share (EPS) calculation:

Basic 900,646,000 924,020,000

Diluted 906,193,000 933,267,000

See Schedules of Significant Items for additional information.

E. I. du Pont de Nemours and Company

Consolidated Balance Sheets

(Dollars in millions, except per share amounts)

SCHEDULE A (continued)

March 31, December 31,

2008 2007

Assets

Current assets

Cash and cash equivalents $1,094 $1,305

Marketable securities 33 131

Accounts and notes receivable, net 7,645 5,683

Inventories 5,310 5,278

Prepaid expenses 212 199

Income taxes 567 564

Total current assets 14,861 13,160

Property, plant and equipment, net of

accumulated depreciation (March 31, 2008 -

$16,036; December 31, 2007 - $15,733) 10,905 10,860

Goodwill 2,074 2,074

Other intangible assets 2,781 2,856

Investment in affiliates 818 818

Other assets 4,789 4,363

Total $36,228 $34,131

Liabilities and Stockholders' Equity

Current liabilities

Accounts payable $3,061 $3,172

Short-term borrowings and capital

lease obligations 3,196 1,370

Income taxes 177 176

Other accrued liabilities 3,360 3,823

Total current liabilities 9,794 8,541

Long-term borrowings and capital lease

obligations 5,784 5,955

Other liabilities 7,191 7,255

Deferred income taxes 894 802

Total liabilities 23,663 22,553

Minority interests 443 442

Commitments and contingent liabilities

Stockholders' equity

Preferred stock 237 237

Common stock, $0.30 par value; 1,800,000,000

shares authorized; issued at March 31, 2008 -

987,566,000; December 31, 2007 - 986,330,000 296 296

Additional paid-in capital 8,220 8,179

Reinvested earnings
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SOURCE DuPont
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