In the news release, Ellen
Kullman to Retire as Chair and CEO of DuPont, issued
05-Oct-2015 by DuPont over PR
Newswire, the final two paragraphs were inadvertently omitted as
transmitted by PR Newswire. The complete, corrected release
follows:
Ellen Kullman to Retire as Chair and CEO of DuPont
Edward Breen, DuPont Board Member, to Serve as
Interim Chair and CEO Company Updates Operating Earnings Outlook
for Full Year 2015 Increases Targeted Cost Savings from Operational
Redesign to
$1.6 Billion; Accelerates
Annual Run Rate Cost Savings of
$1.3
Billion to 2016
WILMINGTON, Del., Oct. 5, 2015 /PRNewswire/ -- Ellen Kullman,
Chair and CEO of DuPont, announced that she will retire from the
company effective October 16. On that date, Edward Breen, a
current member of the DuPont Board of Directors, will assume the
role of Interim Chair and CEO of DuPont. The Board has
engaged an executive recruitment firm to identify a full-time
replacement.
"Over the past seven years, with the dedication of our entire
team, we have transformed this great company by focusing our
portfolio, streamlining the organization, and driving innovation
that leverages our unique science and engineering capabilities.
With a strong foundation in place now is the right time for a new
leader to continue to drive the pace of change to capitalize fully
on the opportunity ahead," said Kullman. "I want to express my
sincere thanks and admiration to all of my DuPont colleagues around
the world. I have complete confidence that they will realize
the enormous potential of the next generation DuPont."
"We thank Ellen for her extraordinary leadership as Chair and
CEO of DuPont. During more than 27 years with the company,
Ellen has consistently led constructive change by focusing the
organization on identifying and solving our customers' needs.
As our Chair and CEO, Ellen led DuPont through the global recession
and the dramatic transformation of the last several years with the
highest standard of integrity and commitment," said Alexander Cutler, DuPont's Lead Independent
Director.
"Ed Breen's record of achievement
and broad experience make him well-suited to lead the company while
the Board completes its search for the next executive to lead
DuPont," Mr. Cutler said.
"Ellen is an outstanding leader and the entire Board appreciates
her long record of accomplishment at DuPont," said Breen. "As
we confront a challenging environment, she and the management team
already have taken actions to accelerate cost reductions.
Looking ahead, we will continue to drive productivity, and we plan
to conduct a deep dive into the details of our cost structure and
allocation of capital to ensure we deliver appropriate returns for
shareholders. DuPont's unique science capabilities and
leading positions in attractive growth markets are strong
competitive advantages and we are committed to build on that base
to drive DuPont's performance."
Updated Operating Earnings Outlook
DuPont announced that it now expects operating earnings per
share for the full year to be approximately $2.75, compared with the prior guidance of
$3.10. The revised outlook primarily
reflects continued strengthening of the U.S. dollar versus
currencies in emerging markets, particularly the Brazilian Real;
and a further weakening of agricultural markets, primarily in
Brazil. The new guidance assumes
full-year currency impacts of $0.72
per share, versus the prior expectation of approximately
$0.60 per share. Excluding the impact
of currency, the revised guidance for full-year operating earnings
per share, including expected benefits from share repurchases and
cost savings, represents an approximately 3 percent increase in
operating earnings per share year over year. The company now
expects second-half operating earnings per share to be
approximately $0.40, compared with
the prior guidance of $0.75.
Approximately 25 percent of expected second-half operating earnings
will be earned in the third quarter. Prior year operating earnings
were $3.36 and $0.96 per share for the full year and second-half
2014, respectively. Reconciliations of non-GAAP measures are
included at the end of this release.
Demand for crop protection and seed products, primarily in
Brazil, further weakened in the
third quarter impacted by macroeconomic and competitive
pressures. In Brazil, where
the planting season is in progress, tighter farmer profit margins
and credit are causing growers to be more cautious in their
spending. The company is experiencing reduced demand for crop
protection products reflecting low insect pressure and lower seed
volumes as growers are expected to reduce hybrid corn planted
area.
The U.S dollar continues to strengthen versus currencies in
emerging markets. The Brazilian Real has declined more than
60 percent year over year and approximately 20 percent since the
company reported second-quarter results.
In response to these macro conditions, the company announced
that it is accelerating, by one year, its operational redesign cost
saving actions and as result, expects to achieve $1.3 billion of savings on a run rate basis by
the end of 2016. In addition, the company announced its commitment
to achieving additional cost savings as a part of its operational
redesign and is targeting approximately $1.6 billion on a run rate basis by the end
of 2017. Plans related to the additional cost savings are
expected to be finalized in the fourth quarter.
Nick Fanandakis, DuPont's Chief Financial Officer, said, "As
macro conditions have deteriorated further, we are intensifying our
effort to offset these pressures with further productivity
improvements and cost savings, while making disciplined and
targeted investments in innovation to increase value for
shareholders over the long term. While we are experiencing
challenging market conditions this season in Brazil, we continue to see long-term strategic
growth opportunities for our products. Over the long term, we
believe our pipeline of new products and our portfolio of
capabilities position us well in global agriculture markets."
Investor Conference Call
DuPont will hold a conference call and webcast on Monday, Oct. 5, 2015, at 5:00 pm EDT to discuss this news release. The
call can be accessed by dialing 1-630-827-6818, confirmation number
6030934. The webcast and additional presentation materials
can be accessed by visiting the company's investor website (Events
& Presentations) at www.investors.dupont.com. A replay of the
conference call webcast will be available for 90 days by calling
1-630-652-3042, Passcode 6030934#.
These expectations are subject to change as DuPont finalizes
financial statements for the third quarter. DuPont will report its
third-quarter financial results on Oct. 27. For additional
information see the investor center at http://www.dupont.com.
About Edward D.
Breen
Mr. Breen serves as Chairman of Tyco International plc, a
leading global provider of security products and services, fire
detection and suppression products and services and life safety
products, where he also served as Chief Executive Officer from 2002
to 2012. Prior to joining Tyco, Mr. Breen held senior
management positions at Motorola, including as President and Chief
Operating Officer, and General Instrument Corporation, including as
Chairman, President and Chief Executive Officer. Mr. Breen is a
director of Comcast Corporation.
DuPont (NYSE: DD) has been bringing world-class science and
engineering to the global marketplace in the form of innovative
products, materials, and services since 1802. The company believes
that by collaborating with customers, governments, NGOs, and
thought leaders, we can help find solutions to such global
challenges as providing enough healthy food for people everywhere,
decreasing dependence on fossil fuels, and protecting life and the
environment. For additional information about DuPont and its
commitment to inclusive innovation, please visit
www.dupont.com.
Forward Looking Statements: This document contains
forward-looking statements which may be identified by their use of
words like "plans," "expects," "will," "believes," "intends,"
"estimates," "anticipates" or other words of similar meaning. All
statements that address expectations or projections about the
future, including statements about the company's strategy for
growth, product development, regulatory approval, market position,
anticipated benefits of recent acquisitions, timing of anticipated
benefits from restructuring actions, outcome of contingencies, such
as litigation and environmental matters, expenditures and financial
results, are forward looking statements. Forward-looking statements
are not guarantees of future performance and are based on certain
assumptions and expectations of future events which may not be
realized. Forward-looking statements also involve risks and
uncertainties, many of which are beyond the company's control. Some
of the important factors that could cause the company's actual
results to differ materially from those projected in any such
forward-looking statements are: fluctuations in energy and raw
material prices; failure to develop and market new products and
optimally manage product life cycles; ability to respond to market
acceptance, rules, regulations and policies affecting products
based on biotechnology; significant litigation and environmental
matters; failure to appropriately manage process safety and product
stewardship issues; changes in laws and regulations or political
conditions; global economic and capital markets conditions, such as
inflation, interest and currency exchange rates; business or supply
disruptions; security threats, such as acts of sabotage, terrorism
or war, weather events and natural disasters; ability to protect
and enforce the company's intellectual property rights; successful
integration of acquired businesses and separation of
underperforming or non-strategic assets or businesses, including
timely realization of the expected benefits from the separation of
Performance Chemicals. The company undertakes no duty to update any
forward-looking statements as a result of future developments or
new information.
Use of Non-GAAP Measures
Management believes that certain non-GAAP measurements 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 are provided below.
Reconciliation of Operating Earnings Per Share (EPS)
Outlook
The reconciliation below represents the company's second-half
and full year 2015 outlook and second-half and full year 2014 on an
operating earnings per share basis, defined as earnings from
continuing operations excluding significant items and non-operating
pension/OPEB costs. On July 1,
2015, the company completed the spin-off of its Performance
Chemicals segment. Accordingly, the results of Performance
Chemicals are presented as discontinued operations and as such have
been excluded from EPS from continuing operations and operating EPS
for all periods presented.
For more information, please go
to: http://www.dupont.com/content/en_us/home/corporate-functions/media-center/press-releases/ellen-kullman-to-retire-as-chair-and-CEO-of-dupont.html
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SOURCE DuPont