DU PONT REPORTS EARNINGS
WILMINGTON, Del., Jan. 27 /PRNewswire/ -- Du Pont (NYSE: DD) reported a loss for 1992 of $3,927 million or $5.85 per share. This includes transition charges and current-year effects of previously announced accounting changes totaling $5,093 million, and an extraordinary charge of $69 million for early redemption of debt. Excluding the earnings effects of the accounting changes and the debt redemption charge, full-year net income was $1,235 million or $1.81 per share. This compares with net income of $1,403 million, or $2.08 per share, for 1991. The accounting changes reflect adoption in the fourth quarter 1992 of Statement of Financial Accounting Standards (SFAS) No. 106, "Employers' Accounting for Postretirement Benefits Other Than Pensions," and SFAS No. 109, "Accounting for Income Taxes," both retroactive to Jan. 1, 1992. 1992 full-year results were impacted by nonrecurring charges totaling $463 million, or 69 cents per share, for business restructurings, including cost reduction programs, and for costs related to the recall of "Benlate" DF fungicide. In 1991, nonrecurring items totaled a net charge of $329 million, or 49 cents per share. Excluding nonrecurring items from both years, and excluding the effect of 1992 accounting changes and the early retirement of debt, 1992 earnings were down 2 percent. "Business conditions in the United States continued to be difficult in 1992. In addition, there was significant weakening in markets outside the United States, particularly in Europe, during the latter part of the year," said Edgar S. Woolard Jr., chairman. "Nevertheless, apart from accounting changes unique to 1992 and nonrecurring items, earnings were nearly equal to last year's. Significant gains in Polymers and Diversified Businesses helped to offset the downturn in Petroleum, where business conditions were much less favorable than in 1991." The company reported a net loss for the fourth quarter of $230 million, or 35 cents per share. This compares with a 1991 fourth quarter net loss of $240 million, or 36 cents per share. The fourth quarter 1992 includes nonrecurring charges of $329 million, or 49 cents per share, from business restructurings, and a charge of 10 cents per share related to the debt redemption, while the prior year included a net nonrecurring charge of $472 million, or 70 cents per share. Excluding these items from both periods, earnings were down 10 cents per share or 28 percent. The decline reflects weakness in both the United States and Europe, particularly for Fibers. Total company sales for 1992 were $37.8 billion, up 2 percent over 1991 after adjustment to reflect the coal joint venture accounted for under the equity method beginning Jan. 1, 1992. Combined sales for Chemicals, Fibers, Polymers, and Diversified Businesses were 3 percent higher than last year, reflecting 4 percent higher volume, partly offset by 1 percent lower selling prices. Sales volumes in both the United States and other regions increased about 4 percent. Combined earnings for these same segments were up 20 percent excluding the impact in both years of nonrecurring items and the charge from adoption of SFAS No. 106 and SFAS No. 109. Individual segment results for full-year 1992 versus 1991 excluding these impacts are described in the commentary below and in the accompanying segment footnotes and table. Chemicals earnings were $326 million compared with $300 million for 1991, up 9 percent, principally reflecting improvements in a number of basic and specialty chemical businesses, particularly nylon intermediates. White pigment and minerals earnings were flat, as revenue increases were nearly offset by higher costs associated with global expansion. Segment sales were up 4 percent, principally reflecting higher international sales volume, partly offset by lower selling prices. Earnings for Fibers were $582 million, up 4 percent from $561 million in 1991. Sales were about even with prior year, as a small decrease in sales volume was offset by slightly higher selling prices. Textile and flooring systems results were modestly above last year's levels, while advanced materials declined due to weakness in key markets. Polymers earnings were $415 million, up 67 percent from the prior year. Sales were up 5 percent, reflecting a 7 percent increase in volume, partly offset by 2 percent lower prices. Earnings gains were most significant for finishes, attributable to increased demand from the automotive industry, and increased sales for refinish products worldwide. Engineering polymers results improved reflecting higher sales volumes in major markets. Earnings for Diversified Businesses were $241 million, up 22 percent from $197 million in 1991, principally reflecting cost reduction improvements from restructurings in printing and publishing, and earnings gains for medical products. Segment sales were up 3 percent, as volume gains of 6 percent were partly offset by 3 percent lower prices. Petroleum earnings were $480 million versus $854 million in the prior year, down 44 percent. Downstream earnings declined reflecting lower refined product margins in the United States and Europe. Upstream earnings decreased due to lower worldwide crude oil prices, and the absence of prior-year benefits from crude oil forward sales contracts. Lower exploration expense and higher U.S. natural gas prices partly offset these declines. "Business restructurings and cost reduction efforts, including recently announced plans to control healthcare expenses, are improving our global competitive position, said Woolard. "Looking forward, prospects for 1993 will largely depend on the rate of worldwide economic recovery, particularly in the United States and Europe, and our continued progress in reducing costs."
E.I. DU PONT DE NEMOURS AND COMPANY AND CONSOLIDATED SUBSIDIARIES
Consolidated Income Statement(A) (Dollars in millions, except per share) Periods ended Three Months Year Dec. 31 1992 1991 1992 1991 SALES $9,161(B) $9,765(C) $37,799 $38,695(C) Other Income 119 283 553 828 Total 9,280 10,048 38,352 39,523 Cost of Goods Sold and Other Expenses 7,526(B) 7,904(D) 29,051(D) 28,698(D) Selling, General and Administrative Expenses 957 863 3,743 3,576 Depreciation, Depletion and Amortization 800 743 2,688 2,640 Exploration Expenses, Including Dry Hole Costs and Impairment of Unproved Properties 119 225 416 602 Interest and Debt Expense 171 183 643 752 Gain from Sale of an Interest in Coal Business --- (391) --- (391) Cost Reduction Programs Expense --- 828 --- 828 Total 9,573 10,355 36,541 36,705 EARNINGS (LOSS) BEFORE INCOME TAXES (293) (307) 1,811 2,818 Provision for Income Taxes (132) (67) 836 1,415 Income (Loss) Before Extraordinary Item and Transition Effect of Accounting Changes (161) (240) 975 1,403 Extraordinary Charge from Early Extinguishment of Debt (69) --- (69) --- Transition Effect of Change in Accounting for Postretirement Benefits Other Than Pensions --- --- (3,788) --- Transition Effect of Change in Accounting for Income Taxes --- --- (1,045) --- NET INCOME (LOSS) (230) (240) (3,927) 1,403 EARNINGS (LOSS) PER SHARE OF COMMON STOCK(E) Income (Loss) Before Extraordinary Item and Transition Effect of Accounting Changes $(.25) $(.36) $1.43 $2.08 Extraordinary Charge from Early Extinguishment of Debt (.10) --- (.10) --- Transition Effect of Change in Accounting for Postretirement Benefits Other Than Pensions --- --- (5.63) --- Transition Effect of Change in Accounting for Income Taxes --- --- (1.55) --- NET INCOME (LOSS) $(.35) $(.36) $(5.85) $2.08 DIVIDENDS PER SHARE OF COMMON STOCK .44 .42 1.74 1.68 (A) In the fourth quarter 1992, the company adopted Statement of Financial Accounting Standards (SFAS) No. 106, "Employers' Accounting for Postretirement Benefits Other Than Pensions" and SFAS No. 109, "Accounting for Income Taxes," both retroactive to Jan. 1, 1992. Results for the fourth quarter and year 1992 reflect adoption of these standards. (B) Previously reported amounts for the first nine months have been reduced $69 to correct overstatement. (C) Includes sales of $458 for quarter and $1,752 for year associated with the coal business now part of a joint venture accounted for under the equity method. (D) Includes charges of $212 for year 1992, and $278 for quarter and $343 for year 1991 associated with "Benlate" DF Fungicide recall. (E) Earnings per share are calculated on the basis of the following average number of common shares outstanding. Year Ended Dec. 31: 1992 -- 673,454,935 1991 -- 670,743,786
E.I. DU PONT DE NEMOURS AND COMPANY AND CONSOLIDATED SUBSIDIARIES
CONSOLIDATED INDUSTRY SEGMENT INFORMATION (Dollars in millions) Periods ended Three Months Year Dec. 31 1992 1991 1992 1991 SALES Chemicals $879(A) $870 $3,617 $3,478 Fibers 1,486 1,508 6,074 6,056 Polymers 1,444 1,402 5,856 5,565 Petroleum 3,966 4,179 16,065 15,851 Diversified Businesses 1,386 1,806(B) 6,187 7,745(B) Total $9,161(A) $9,765 $37,799 $38,695 AFTER-TAX OPERATING INCOME (LOSS)(C) Chemicals --- 92(D) 226 316(D) Fibers (17) 36 409 416(E) Polymers 4 (109) 318 119(F) Petroleum (2) 54(G) 337 814(G) Diversified Businesses (138) (234)(B)(H) (49)(I) 107(B)(H) Total (153) (161) 1,241 1,772 Interest and Other Corporate Expenses Net of Tax (8)(J) (79)(B) (266)(J) (369)(B)(G) INCOME (LOSS) BEFORE EXTRAORDINARY ITEM AND TRANSITION EFFECT OF ACCOUNTING CHANGES (161) (240) 975 1,403 Note: In the fourth quarter 1992, the company adopted Statement of Financial Accounting Standards (SFAS) No. 106, "Employers' Accounting for Postretirement Benefits Other Than Pensions" and SFAS No. 109, "Accounting for Income Taxes," both retroactive to Jan. 1, 1992. Results for the fourth quarter and year 1992 reflect adoption of these standards. Segment results and Interest and Other Corporate Expenses Net of Tax include the following related (charges) benefits: Dec. 31, 1992 Periods ended Three Months Year Chemicals $(8) $(49) Fibers (22) (104) Polymers (18) (75) Petroleum (17) (47) Diversified Businesses --- (65) Total (65) (340) Interest and Other Corporate Expenses Net of Tax 66 80 Total $1 $(260) (A) Previously reported amounts for the first nine months have been reduced $69 to correct overstatement of sales and costs. (B) Diversified Businesses includes amounts associated with the coal business, previously a separate segment. On Dec. 31, 1991, the coal business was restructured and became a part of a corporate joint venture accounted for under the equity method. Interest and Other Corporate
Expenses Net of Tax related to the coal business for 1991 have been reclassified to the Diversified Businesses segment to conform to 1992 classifications. Sales for 1991 include $458 for quarter and $1,752 for year associated with the coal business.
(C) 1992 includes the following fourth quarter charges for termination incentives and payments, as well as certain other charges, related to business restructurings: Chemicals (a) $51 Fibers (b) 69 Polymers 22 Petroleum (c) 96 Diversified Businesses (d) 91 Total $329 (a) Includes $38 charge for project and facility shutdowns. (b) Includes $38 charge principally for shutdown of fire-damaged facilities. (c) Includes $17 charge for shutdown of refinery facilities. (d) Includes $42 charge principally for withdrawal from certain electronic imaging business lines. 1991 includes the following fourth quarter charges related to the company's cost reduction and business restructuring programs: Chemicals $ 55 Fibers 116 Polymers 141 Petroleum 54 Diversified Businesses 171 Total $537 (D) Includes $89 gain from sale of methanol business. Year also includes $18 charge associated with a partial withdrawal from the "Freon" chlorofluococarbon manufacturing business. (E) Includes $29 charge for facility shutdowns. (F) Includes $11 gain from sale of a business. (G) Quarter includes $20 charge related to supplemental amortization for U.S. unproved properties. Year for Petroleum also includes $54 benefit from refunds of taxes paid in prior years, partly offset by $20 charge for withdrawal from operations in Ecuador. Interest and Other Corporate Expenses Net of Tax includes interest benefit of $60 associated with the tax refunds. (H) Includes charge of $175 associated with "Benlate" DF Fungicide recall, $152 gain from sale of an interest in Coal business, and $19 gain from sale of an interest in an electronics business. Year also includes $142 gain from sales of interests in businesses and assets; partly offset by charges of $41 for "Benlate" recall and $16 associated with restructuring activities. (I) Includes $134 charge associated with "Benlate" DF Fungicide recall. (J) Includes exchange gain of $71 for quarter and $97 for year related to unhedged non-U.S. deferred tax liabilities, which were established on the adoption of SFAS No. 109. E.I. DU PONT DE NEMOURS AND COMPANY AND CONSOLIDATED SUBSIDIARIES CONSOLIDATED INDUSTRY SEGMENT INFORMATION EXCLUDING IMPACT OF SFAS NO. 106 AND SFAS NO. 109 AND NONRECURRING ITEMS (Dollars in millions) After-Tax Operating Income Periods ended Three Months Year Dec. 31 1992 1991 1992 1991 Chemicals $59 $58 $326 $300 Fibers 74 152 582 561 Polymers 44 32 415 249 Petroleum 111 128 480 854 Diversified Businesses (47) (59) 241 197 Total 241 311 2,044 2,161 Less: Interest and Other Corporate Expenses Net of Tax (74) (79) (346) (429) $167 $232 $1,698 $1,732 /delval/ -0- 1/27/93 /CONTACT: Loretta Clevenger of Du Pont, 302-774-6695/ (DD)
CO: Du Pont ST: Delaware IN: CHM SU: ERN
MP -- PH003 -- 9466 01/27/93 09:05 EST
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|Date:||Jan 27, 1993|
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