DUPONT REPORTS EARNINGS
WILMINGTON, Del., Oct. 27 /PRNewswire/ -- DuPont (NYSE: DD) today outlined additional elements of its major restructuring program which resulted in a net loss of $680 million for the third-quarter 1993. Excluding the restructuring and other nonrecurring items from both periods, earnings were $.51 per share, compared with $.56 per share for the same period last year. The difference reflects, in part, the effects of the ongoing coal strike on its affiliate, CONSOL Energy Inc., which lowered DuPont's earnings by $.07 per share, versus last year. DuPont announced it recorded, in total, an after-tax charge of $1.3 billion, or $1.91 per share, for the restructurings. This includes $375 million, or $.55 per share, related to personnel separation costs resulting from job reductions, which were announced previously. At that time the company also indicated it anticipated other restructuring charges for the third quarter. These amounted to $920 million, or $1.36 per share. The restructuring charges are directly related to corporate decisions to reduce worldwide employment levels and aggressively realign production and support facilities to further improve productivity. These actions are expected to substantially reduce fixed costs in the future. The restructuring charges, which include major printing and publishing write-offs, are another step in a series of events in 1993 that included the sale of DuPont Connector Systems earlier in the year, and the agreement to sell its Remington Arms subsidiary, announced last week. The printing and publishing charges are for rationalization of excess manufacturing capacity, as well as for write-offs of goodwill and technology resulting from acquisitions made in the late 1980s. Additional charges relate to restructurings of certain North American petroleum properties, a portion of a polymers plant in LaPorte, Texas, nylon textile production lines in Martinsville, Va., polyester filament production facilities at Cooper River, S.C., and costs related to other productivity improvements. The third quarter includes a $265 million or $.39 per share tax benefit, previously announced, arising principally from U.K. petroleum tax law revisions. Last year's third quarter included a nonrecurring exchange gain of $.07 per share. "As we stated previously, we expect to have all our businesses competitive in 1994, and we are determined to take whatever steps are necessary to achieve that goal," said DuPont Chairman Edgar S. Woolard Jr. "Printing and publishing has made noteworthy improvements during the past year. However, industry conditions have continued to deteriorate, and the restructurings are necessary to improve the business's competitiveness in today's marketplace," he added. Total third-quarter sales were $9.2 billion, down 5 percent. Combined sales for Chemicals, Fibers, Polymers, and Diversified Businesses were 2 percent lower than last year, due to 4 percent lower selling prices, partly offset by 2 percent higher volume. Outside the United States selling prices declined 10 percent, principally due to the exchange impact of a stronger dollar. The following compares segment results for the third quarter of 1993 with the same period last year, excluding the impact of nonrecurring items and tax benefits described in the accompanying segment footnotes: Petroleum segment earnings were $181 million, up $33 million, or 22 percent from last year. This reflects significantly lower costs, higher natural gas prices and volumes, and higher international crude oil volumes. These improvements were partly offset by lower crude oil prices, which averaged about $3.50 per barrel below last year. Chemicals segment earnings were $46 million, down 36 percent, principally due to lower earnings for white pigments and specialty chemicals. Sales were down 6 percent, reflecting 3 percent lower volume and 3 percent lower prices, principally due to the currency exchange effects of a stronger dollar. Fibers segment earnings were $109 million, off 22 percent, principally reflecting lower results for textile specialties and nylon in Europe. Sales were up 4 percent, as volume was up 9 percent, mainly attributable to sales from the addition of the nylon business acquired from ICI. Partly offsetting, worldwide Fibers selling prices were down 5 percent, principally due to the stronger dollar. Polymers segment earnings were $71 million, down 31 percent, principally reflecting lower results in the automotive engineering polymers and elastomers businesses. Segment sales were 3 percent below last year as 7 percent lower selling prices, principally currency related, were offset by 4 percent higher volume. Earnings for Diversified Businesses were $6 million, up $20 million from prior year. The improvement is attributable to higher earnings for the imaging businesses and for crop protection chemicals. Partly offsetting these gains were lower coal results which have been affected by UMWA strikes at several coal sites. Segment sales were 5 percent lower, principally reflecting the absence of sales from DuPont Connector Systems, and 1 percent lower selling prices. Excluding nonrecurring items in both years, and the tax benefits recorded in 1993, net income for the nine months to-date was $1,348 million, or $1.98 per share, 8 percent higher than last year's $1,244 million, or $1.84 per share. Total net income for the nine months is $329 million, or $.48 per share, compared to $1.1 billion, or $1.68 per share, in the same period last year, before one-time charges totaling $4.8 billion in the first quarter of 1992 for adoption of new accounting standards. Year-to-date sales totaled $27.8 billion, down 3 percent from last year. "Although much of the bottom-line impact continues to be masked by poor economic conditions in Europe and Japan, we have made significant progress in every area of transformation that we have undertaken during the past two years, as can be seen by petroleum's solid performance in the face of weaker oil prices," said Woolard. "We have made extraordinary and difficult changes, including job reductions, a reorganization of our businesses, divestitures, and major fixed cost and spending reductions. We will continue to pursue our objectives aggressively and make our businesses healthy within the time frame we have set for ourselves."
E.I. DU PONT DE NEMOURS AND COMPANY AND CONSOLIDATED SUBSIDIARIES
Consolidated Income Statement (Dollars in millions, except per share) Periods ended Three months Nine months Sept. 30 1993 1992 1993 1992 SALES $9,231 $9,733 $27,847 $28,638 Other Income 147 148 508 434 Total 9,378 9,881 28,355 29,072 Cost of Goods Sold and Other Expenses 6,895 7,376 20,651 21,525(A) Selling, General and Administrative Expenses 838 954 2,503 2,786 Depreciation, Depletion and Amortization 716 676 2,076 1,888 Exploration Expenses, Including Dry Hole Costs and Impairment of Unproved Properties 91 76 241 297 Interest and Debt Expense 132 156 452 472 Restructuring Charges 1,835(B) --- 1,835(B) --- Total 10,507 9,238 27,758 26,968 EARNINGS (LOSS) BEFORE INCOME TAXES (1,129) 643 597 2,104 Provision for Income Taxes (449)(C) 223(D) 268(C) 968(D) INCOME (LOSS) BEFORE TRANSITION EFFECT OF ACCOUNTING CHANGES (680) 420 329 1,136 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) $(680) $420 $329 $(3,697) EARNINGS (LOSS) PER SHARE OF COMMON STOCK(E): Income (Loss) Before Transition Effect of Accounting Changes $(1.01) $.63 $.48 $1.68 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) EARNINGS (LOSS) PER SHARE OF COMMON STOCK $(1.01) $.63 $.48 $(5.50) DIVIDENDS PER SHARE OF COMMON STOCK $.44 $.44 $1.32 $1.30 (A) Includes a charge of $212 associated with the "Benlate" DF fungicide recall. (B) Includes charges for asset write-downs, employee separation costs, facility shutdowns, and other restructuring costs. (C) Includes a benefit of $265 resulting from tax law changes, primarily in the United Kingdom. (D) Includes exchange gain of $44 for the quarter and $26 for the nine months related to unhedged non-U.S. deferred tax liabilities established on the adoption of SFAS No. 109. (E) Earnings per share are calculated on the basis of the following average number of common shares outstanding: Nine Months Ended Sept. 30: 1993 -- 676,367,531 1992 -- 673,078,991
E.I. DU PONT DE NEMOURS AND COMPANY AND CONSOLIDATED SUBSIDIARIES
Consolidated Industry Segment Information (Dollars in millions) Periods ended Three Months Nine Months Sept. 30 1993 1992 1993 1992 SALES Chemicals $884 $936 $2,665 $2,738 Fibers 1,588 1,524 4,565 4,588 Polymers 1,424 1,475 4,411 4,412 Petroleum 3,995 4,384 11,712 12,099 Diversified Businesses 1,340 1,414 4,494 4,801 Total $ 9,231 $ 9,733 $27,847 $28,638 AFTER-TAX OPERATING INCOME (LOSS)(A)(B) Chemicals $ (60) $ 72 $ 100 $ 226 Fibers (147) 139 65 426 Polymers (67) 103 117 314 Petroleum 239 148 649(C) 339 Diversified Businesses (582) (14) (354) 89(D) Total (617) 448 577 1,394 Interest and Other Corporate Expenses Net of Tax (63) (28)(E) (248) (258)(E) NET INCOME (LOSS) $ (680) $ 420 $ 329 $1,136(F) (A) 1993 includes the following third-quarter charges for asset write-downs, employee separation costs, facility shutdowns, and other restructuring costs: Chemicals $ 112 (a) Fibers 266 (b) Polymers 148 (c) Petroleum 172 (d) Diversified Businesses 597 (e) $1,295 (a) Includes $59 for asset write-downs and facility shutdowns
for the fluorochemicals and specialty chemicals businesses.
(b) Includes $46 for facility shutdowns and asset write-downs, primarily for the nylon business. (c) Includes $64 for shutdown of a portion of a polymers plant in LaPorte, Texas. (d) Includes $147 for asset write-downs of certain North
American petroleum-producing properties.
(e) Includes $448 for asset write-downs, primarily intangibles and facilities for the printing and publishing business. (B) 1993 includes a third-quarter benefit of $265 resulting from tax law changes. The Petroleum segment reflects $230, primarily due to a reduction in deferred U.K. petroleum revenue taxes, and $35 is reflected in the remaining segments. (C) Includes a $21 loss from sale of petroleum-producing properties and a $32 gain from exchange of North Sea properties. (D) Includes a $134 charge associated with the "Benlate" DF fungicide recall. (E) Includes exchange gain of $44 for the quarter and $26 for the nine months related to unhedged non-U.S. deferred tax liabilities established on the adoption of SFAS No. 109. (F) Before the transition effect of accounting changes.
E.I. DU PONT DE NEMOURS AND COMPANY AND CONSOLIDATED SUBSIDIARIES
Consolidated Industry Segment Information Excluding Impact Of Nonrecurring Items And Tax Benefit (Dollars in millions) After-Tax Operating Income Periods ended Three Months Nine Months Sept. 30 1993 1992 1993 1992 Chemicals $ 46 $ 72 $ 206 $ 226 Fibers 109 139 321 426 Polymers 71 103 255 314 Petroleum 181 148 580 339 Diversified Businesses 6 (14) 234 223 Total 413 448 1,596 1,528 Less: Interest and Other Corporate Expenses Net of Tax (63) (72) (248) (284) $350 $376 $1,348 $1,244 SUMMARY: DUPONT ANNOUNCES THIRD QUARTER FINANCIAL RESULTS DuPont posted a net loss of $680 million for the third quarter of 1993 to the third quarter of 1992. Company officials said the loss was a result of employee separation costs, facility shutdowns, other restructuring costs. Excluding the restructuring costs and other one-time charges, DuPont's earnings were 51 cents per share, compared to 56 cents per share for the same period last year. The coal strike, which affected DuPont affiliate, CONSOL Energy Inc., lowered earnings by 7 cents per share compared to last year. Excluding the one-time charges and 1993 tax benefits, net income for the nine months to-date was $1.348 billion, eight percent higher than last year's $1.244 billion. Third quarter sales were $9.2 billion, down five percent. Combined sales for DuPont Chemicals, Fibers, Polymers and Diversified businesses were two percent lower than last year. Excluding one-time charges, company earnings were off nine percent with DuPont Chemical and Specialty products businesses off 23 percent and petroleum earnings up 22 percent. In total, DuPont recorded an after-tax charge of $1.3 billion including $375 million for costs associated with previously announced job reductions, and $920 million for other restructuring charges such as asset write-downs, facility shutdowns and additional employee separation costs. According to DuPont Chairman Edgar S. Woolard Jr., "We have made extraordinary and difficult changes, including job reductions, a reorganization of our businesses, divestitures, and major fixed cost and spending reductions. We expect to have all our businesses healthy and competitive in 1994." /delval/ -0- 10/27/93 /CONTACT: Mike Ricciuto of DuPont, 302-774-2883/ (DD)
CO: DuPont ST: Delaware IN: CHM SU: ERN
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