WILMINGTON, Del., Oct. 27, 2015 /PRNewswire/ --
Third-Quarter Highlights
- Third-quarter operating earnings per share were $0.13 versus $0.39
in prior year. GAAP1 earnings per share were
$0.14 versus $0.36 in prior year.
- Results reflected macro challenges including currency;
industry wide challenges in Ag markets, particularly in
Brazil; and continued weakness in
emerging markets and oil and gas markets affecting Safety &
Protection, partially offset by continued positive effects of the
operational redesign and cost reductions in the quarter, including
performance-based compensation.
- Segment pre-tax operating earnings of $433 million included $187
million, or $0.17 per share,
of negative impact from currency. Growth in Electronics &
Communications and Industrial Biosciences was more than offset by
declines in Agriculture, Performance Materials and Safety &
Protection.
- Cost reductions from operational redesign contributed an
incremental $0.10 per share to
third-quarter operating earnings, driving operating margin
improvement in four segments; on track to deliver approximately
$0.40 per share in incremental
savings in 2015.
- $2 billion accelerated share
repurchase program launched in the quarter; on October 22nd, announced fourth quarter
dividend of $0.38 per share.
Year-to-Date Highlights
- Reported year-to-date operating earnings per share of
$2.49 versus $2.79 in prior year. Excluding negative currency
impact of $0.53 per share, operating
earnings per share would have increased 8 percent. GAAP1
earnings per share were $2.33 versus
$2.76 in prior year.
- Accelerated $1.3 billion
annual run-rate cost savings expected from operational redesign to
year-end 2016; increased targeted cost savings from operational
redesign to about $1.6 billion by
year-end 2017. Current review of cost, working capital performance,
and capital spending will assure that our cost actions will result
in a further net benefit to the bottom line.
- DuPont continues to expect full-year 2015 operating earnings
to be about $2.75 per share.
Negative currency impact expected to be $0.72 per share. Excluding the impact of
currency, the guidance for full-year operating earnings per share,
including expected benefits from share repurchases and cost
savings, represents an approximate 3-percent increase year over
year.
DuPont (NYSE: DD), a science company that brings world-class,
innovative products, materials, and services to the global
marketplace, today announced third-quarter 2015 operating earnings
of $0.13 per share compared with
$0.39 per share in the prior
year. GAAP1 earnings were $0.14 per share, compared with $0.36 per share in the prior year.
Third-quarter sales were $4.9
billion, down 17 percent versus prior year due to negative
impacts from currency (8 percent), portfolio (1 percent), volume (7
percent) and local price and product mix (1 percent).
Year-to-date sales were $19.8
billion, down 12 percent versus prior year due to negative
impacts from currency (7 percent), portfolio (2 percent) and volume
(3 percent).
"While our bottom line continues to benefit from the positive
effects of our operational redesign and productivity improvements,
we are not pleased with our results this quarter," said
Nick Fanandakis, Executive Vice
President and CFO. "We saw significant negative impacts from
currency as well as market weakness in agriculture, emerging market
industrial production, and oil and gas. We remain on track with our
revised annual guidance of operating earnings per share of about
$2.75, an increase from the prior
year of 3 percent excluding currency."
"Amid the current challenging macro environment, our priority is
to aggressively manage what is within our control, including taking
a fresh look at DuPont's cost structure and capital allocation
strategy to identify ways to further improve shareholder return,"
said Ed Breen, DuPont Interim Chair
and CEO. "Addressing these areas even more intensely will put
DuPont in a stronger position to capitalize over the long term on
our unique science and leading positions in attractive growth
markets while generating appropriate returns for shareholders in
the near term."
Global Consolidated Net Sales – 3rd Quarter and
Year-to-Date
|
|
Three Months
Ended
|
|
|
|
|
|
|
|
|
|
|
September 30,
2015
|
|
Percent Change Due
to:
|
|
|
|
|
%
|
|
Local Price
and
|
|
|
|
|
|
Portfolio
/
|
|
|
$
|
|
Change
|
|
Product
Mix
|
|
Currency
|
|
Volume
|
|
Other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. & Canada
|
|
$ 1,580
|
|
(9)
|
|
(5)
|
|
-
|
|
(3)
|
|
(1)
|
EMEA *
|
|
1,196
|
|
(19)
|
|
1
|
|
(14)
|
|
(4)
|
|
(2)
|
Asia
Pacific
|
|
1,328
|
|
(14)
|
|
(2)
|
|
(4)
|
|
(6)
|
|
(2)
|
Latin America
|
|
769
|
|
(33)
|
|
1
|
|
(18)
|
|
(16)
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Consolidated
Sales
|
$ 4,873
|
|
(17)
|
|
(1)
|
|
(8)
|
|
(7)
|
|
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Europe,
Middle East & Africa
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months
Ended
|
|
|
|
|
|
|
|
|
|
|
September 30,
2015
|
|
Percent Change Due
to:
|
|
|
|
|
%
|
|
Local Price
and
|
|
|
|
|
|
Portfolio
/
|
|
|
$
|
|
Change
|
|
Product
Mix
|
|
Currency
|
|
Volume
|
|
Other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. & Canada
|
|
$ 8,871
|
|
(6)
|
|
(2)
|
|
-
|
|
(2)
|
|
(2)
|
EMEA *
|
|
4,850
|
|
(18)
|
|
2
|
|
(16)
|
|
(2)
|
|
(2)
|
Asia
Pacific
|
|
4,200
|
|
(10)
|
|
(1)
|
|
(3)
|
|
(3)
|
|
(3)
|
Latin America
|
|
1,910
|
|
(26)
|
|
1
|
|
(13)
|
|
(13)
|
|
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Consolidated
Sales
|
$ 19,831
|
|
(12)
|
|
-
|
|
(7)
|
|
(3)
|
|
(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Europe,
Middle East & Africa
|
|
|
|
|
|
|
|
|
|
|
Segment Net Sales – 3rd Quarter and Year-to-Date
|
|
Three Months
Ended
|
|
|
|
|
|
|
|
|
|
|
September 30,
2015
|
|
Percent Change Due
to:
|
|
|
|
|
|
|
Local Price
and
|
|
|
|
|
|
Portfolio
/
|
|
|
$
|
|
% Change
|
|
Product
Mix
|
|
Currency
|
|
Volume
|
|
Other
|
(Dollars in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
Agriculture
|
|
$ 1,093
|
|
(30)
|
|
3
|
|
(15)
|
|
(17)
|
|
(1)
|
Electronics &
Communications
|
532
|
|
(14)
|
|
(5)
|
|
(2)
|
|
(7)
|
|
-
|
Industrial
Biosciences
|
|
305
|
|
(3)
|
|
(4)
|
|
(6)
|
|
7
|
|
-
|
Nutrition &
Health
|
|
810
|
|
(10)
|
|
-
|
|
(9)
|
|
-
|
|
(1)
|
Performance
Materials
|
|
1,302
|
|
(15)
|
|
(5)
|
|
(6)
|
|
(3)
|
|
(1)
|
Safety &
Protection
|
|
831
|
|
(15)
|
|
(1)
|
|
(4)
|
|
(6)
|
|
(4)
|
Other
|
|
-
|
|
|
|
|
|
|
|
|
|
|
Consolidated Net
Sales
|
|
4,873
|
|
(17)
|
|
(1)
|
|
(8)
|
|
(7)
|
|
(1)
|
|
|
Nine Months
Ended
|
|
|
|
|
|
|
|
|
|
|
September 30,
2015
|
|
Percent Change Due
to:
|
|
|
|
|
|
|
Local Price
and
|
|
|
|
|
|
Portfolio
/
|
|
|
$
|
|
% Change
|
|
Product
Mix
|
|
Currency
|
|
Volume
|
|
Other
|
(Dollars in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
Agriculture
|
|
$ 8,248
|
|
(14)
|
|
2
|
|
(8)
|
|
(7)
|
|
(1)
|
Electronics &
Communications
|
1,577
|
|
(13)
|
|
(5)
|
|
(2)
|
|
(6)
|
|
-
|
Industrial
Biosciences
|
|
870
|
|
(6)
|
|
(4)
|
|
(6)
|
|
4
|
|
-
|
Nutrition &
Health
|
|
2,449
|
|
(9)
|
|
-
|
|
(9)
|
|
1
|
|
(1)
|
Performance
Materials
|
|
4,021
|
|
(13)
|
|
(4)
|
|
(6)
|
|
2
|
|
(5)
|
Safety &
Protection
|
|
2,663
|
|
(10)
|
|
-
|
|
(5)
|
|
-
|
|
(5)
|
Other
|
|
3
|
|
|
|
|
|
|
|
|
|
|
Consolidated Net
Sales
|
|
19,831
|
|
(12)
|
|
-
|
|
(7)
|
|
(3)
|
|
(2)
|
Operating Earnings – 3rd Quarter and Year-to-Date
|
|
|
|
|
Change vs.
2014
|
(Dollars in
millions)
|
3Q15
|
|
3Q14
|
|
$
|
|
%
|
Agriculture
|
$ (210)
|
|
$ (56)
|
|
$ (154)
|
|
-275%
|
Electronics &
Communications
|
104
|
|
90
|
|
14
|
|
16%
|
Industrial
Biosciences
|
52
|
|
42
|
|
10
|
|
24%
|
Nutrition &
Health
|
102
|
|
99
|
|
3
|
|
3%
|
Performance
Materials
|
317
|
|
366
|
|
(49)
|
|
-13%
|
Safety &
Protection
|
156
|
|
195
|
|
(39)
|
|
-20%
|
Other
|
(88)
|
|
(50)
|
|
(38)
|
|
-76%
|
Total segment
operating earnings (1)
|
433
|
|
686
|
|
(253)
|
|
-37%
|
|
|
|
|
|
|
|
|
Exchange gains
(losses) (2)
|
(36)
|
|
250
|
|
(286)
|
|
nm
|
Corporate expenses
(1)
|
(111)
|
|
(167)
|
|
56
|
|
-34%
|
Interest
expense
|
(82)
|
|
(93)
|
|
11
|
|
-12%
|
Operating earnings
before income taxes
|
204
|
|
676
|
|
(472)
|
|
-70%
|
Provision for income
taxes on operating earnings
|
(87)
|
|
(314)
|
|
227
|
|
|
Less: Net income
attributable to noncontrolling interests
|
-
|
|
1
|
|
(1)
|
|
|
Operating
earnings
|
$ 117
|
|
$ 361
|
|
$ (244)
|
|
-68%
|
|
|
|
|
|
|
|
|
Operating earnings
per share
|
$ 0.13
|
|
$ 0.39
|
|
$ (0.26)
|
|
-67%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change vs.
2014
|
(Dollars in
millions)
|
YTD 3Q15
|
|
YTD 3Q14
|
|
$
|
|
%
|
Agriculture
|
$ 1,700
|
|
$ 2,218
|
|
$ (518)
|
|
-23%
|
Electronics &
Communications
|
272
|
|
244
|
|
28
|
|
11%
|
Industrial
Biosciences
|
148
|
|
148
|
|
-
|
|
0%
|
Nutrition &
Health
|
288
|
|
290
|
|
(2)
|
|
-1%
|
Performance
Materials
|
935
|
|
941
|
|
(6)
|
|
-1%
|
Safety &
Protection
|
522
|
|
567
|
|
(45)
|
|
-8%
|
Other
|
(175)
|
|
(164)
|
|
(11)
|
|
-7%
|
Total segment
operating earnings (1)
|
3,690
|
|
4,244
|
|
(554)
|
|
-13%
|
|
|
|
|
|
|
|
|
Exchange gains
(losses) (1), (2)
|
117
|
|
102
|
|
15
|
|
nm
|
Corporate expenses
(1)
|
(413)
|
|
(543)
|
|
130
|
|
-24%
|
Interest
expense(1)
|
(240)
|
|
(290)
|
|
50
|
|
-17%
|
Operating earnings
before income taxes
|
3,154
|
|
3,513
|
|
(359)
|
|
-10%
|
Provision for income
taxes on operating earnings
|
(881)
|
|
(912)
|
|
31
|
|
|
Less: Net income
attributable to noncontrolling interests
|
9
|
|
10
|
|
(1)
|
|
|
Operating
earnings
|
$ 2,264
|
|
$ 2,591
|
|
$ (327)
|
|
-13%
|
|
|
|
|
|
|
|
|
Operating earnings
per share
|
$ 2.49
|
|
$ 2.79
|
|
$ (0.30)
|
|
-11%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) See Schedules B
and C for listing of significant items and their impact by
segment.
|
|
|
|
|
|
|
|
|
|
|
(2) See Schedule D
for additional information on exchange gains and losses.
|
|
|
|
|
The following is a summary of business results for each of the
company's reportable segments comparing third quarter with the
prior year, unless otherwise noted.
Agriculture – A seasonal operating loss of $210 million was $154
million larger as improved productivity and cost reductions,
increases in local price, $27 million
gains from asset sales and a $21
million benefit related to prior periods were more than
offset by lower volumes and a $108
million negative currency impact. Decreased
volumes are due to lower seed volumes and reduced demand for insect
control products, primarily in Brazil, and an about $40 million negative impact from the LaPorte
manufacturing facility shutdown. Excluding the impact of
currency, the operating loss would have been $102 million.
Electronics & Communications – Operating earnings of
$104 million increased $14 million, or 16 percent, on continued
productivity and cost reductions. Volume growth in
Tedlar® film in photovoltaics and consumer electronics
was more than offset by competitive pressures impacting
Solamet® paste.
Industrial Biosciences – Operating earnings of
$52 million increased $10 million, or 24 percent, as volume growth and
benefits from cost reductions were partially offset by lower
pricing and a $3 million negative
impact from currency. Volume improved across the business driven
primarily by increased demand in food and home and personal care
markets. Excluding the impact of currency, operating earnings would
have increased 31 percent.
Nutrition & Health – Operating earnings of
$102 million increased $3 million, or 3 percent, as cost reductions and
continued productivity more than offset a $17 million negative impact from currency. Volume
growth in probiotics, ingredient systems and texturants was offset
by a decline in specialty proteins. Excluding the impact of
currency, operating earnings would have increased by about 20
percent.
Performance Materials – Operating earnings of
$317 million decreased $49 million, or 13 percent, as cost reductions
and continued productivity were more than offset by $47 million of negative currency impact and lower
ethylene price and volume. Operating earnings included a
$16 million net benefit from a joint
venture, which was more than offset by the absence of a prior year
$23 million gain on the sale of a
majority interest in a joint venture. Excluding the impact of
currency, operating earnings would have been about even with the
prior year.
Safety & Protection – Operating earnings of
$156 million decreased $39 million, or 20 percent. Cost reductions
and productivity improvements were more than offset by lower
demand, a negative currency impact of $13
million, and the portfolio impact of the Sontara®
divestiture. Volume growth in Tyvek® protective material for
medical packaging was more than offset by weakness in the oil and
gas industry, which impacted Nomex® thermal-resistant fiber and
Sustainable Solutions offerings, and by delays in military
spending, which impacted Kevlar® high-strength material. Also
contributing to the decline were higher unit costs associated with
the slower-than-expected recovery at the Chamber Works facility.
Excluding the impact of currency, operating earnings would have
decreased by about 13 percent.
Outlook
The company reaffirms its recently updated outlook for full-year
2015 operating earnings of about $2.75 per share. The outlook reflects
continued strengthening of the U.S. dollar versus currencies in
emerging markets, particularly the Brazilian Real; a further
weakening of agricultural markets, primarily in Brazil; and continued weakness in emerging
markets. Negative currency impact is expected to be
$0.72 per share. Excluding the
impact of currency, the guidance for full-year operating earnings
per share, including expected benefits from share repurchases and
cost savings, represents an approximate 3-percent increase year
over year.
DuPont will hold a conference call and webcast on Tuesday, October 27, 2015, at 9:00 AM EDT to discuss this news release.
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 38251527#. For additional
information see the investor center at http://www.dupont.com.
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 GAAP and should
not be viewed as an alternative to GAAP measures of
performance. Reconciliations of non-GAAP measures to GAAP are
provided in schedules A, C and D.
About DuPont
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
http://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.
E.I. du Pont de
Nemours and Company
Consolidated Income
Statements
(Dollars in
millions, except per share amounts)
|
|
|
|
|
|
|
|
|
SCHEDULE
A
|
|
|
|
|
|
|
|
|
Three Months
Ended
September
30,
|
|
Nine Months
Ended
September
30,
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Net sales
|
$
|
4,873
|
|
|
$
|
5,905
|
|
|
$
|
19,831
|
|
|
$
|
22,557
|
|
Other income, net
(1)
|
98
|
|
|
364
|
|
|
552
|
|
|
749
|
|
Total
|
4,971
|
|
|
6,269
|
|
|
20,383
|
|
|
23,306
|
|
|
|
|
|
|
|
|
|
Cost of goods
sold
|
3,084
|
|
|
3,698
|
|
|
11,703
|
|
|
13,350
|
|
Other operating
charges (1)
|
91
|
|
|
201
|
|
|
413
|
|
|
609
|
|
Selling, general and
administrative expenses
|
1,046
|
|
|
1,157
|
|
|
3,540
|
|
|
3,833
|
|
Research and
development expense
|
441
|
|
|
486
|
|
|
1,415
|
|
|
1,491
|
|
Interest expense
(1)
|
82
|
|
|
93
|
|
|
260
|
|
|
290
|
|
Employee separation /
asset related charges, net (1)
|
—
|
|
|
—
|
|
|
40
|
|
|
244
|
|
Total
|
4,744
|
|
|
5,635
|
|
|
17,371
|
|
|
19,817
|
|
|
|
|
|
|
|
|
|
Income from
continuing operations before income taxes
|
227
|
|
|
634
|
|
|
3,012
|
|
|
3,489
|
|
Provision for income
taxes on continuing operations (1)
|
96
|
|
|
303
|
|
|
886
|
|
|
921
|
|
Income from
continuing operations after income taxes
|
131
|
|
|
331
|
|
|
2,126
|
|
|
2,568
|
|
Income from
discontinued operations after taxes
|
104
|
|
|
103
|
|
|
89
|
|
|
385
|
|
|
|
|
|
|
|
|
|
Net income
|
235
|
|
|
434
|
|
|
2,215
|
|
|
2,953
|
|
|
|
|
|
|
|
|
|
Less: Net
income attributable to noncontrolling interests
|
—
|
|
|
1
|
|
|
9
|
|
|
11
|
|
|
|
|
|
|
|
|
|
Net income
attributable to DuPont
|
$
|
235
|
|
|
$
|
433
|
|
|
$
|
2,206
|
|
|
$
|
2,942
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share of common stock:
|
|
|
|
|
|
|
|
Basic earnings per
share of common stock from continuing operations
|
$
|
0.14
|
|
|
$
|
0.36
|
|
|
$
|
2.34
|
|
|
$
|
2.78
|
|
Basic earnings per
share of common stock from discontinued operations
|
0.12
|
|
|
0.11
|
|
|
0.10
|
|
|
0.42
|
|
Basic earnings per
share of common stock
|
$
|
0.26
|
|
|
$
|
0.47
|
|
|
$
|
2.44
|
|
|
$
|
3.20
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share of common stock:
|
|
|
|
|
|
|
|
Diluted earnings per
share of common stock from continuing operations
|
$
|
0.14
|
|
|
$
|
0.36
|
|
|
$
|
2.33
|
|
|
$
|
2.76
|
|
Diluted earnings per
share of common stock from discontinued operations
|
0.12
|
|
|
0.11
|
|
|
0.10
|
|
|
0.42
|
|
Diluted earnings per
share of common stock (2)
|
$
|
0.26
|
|
|
$
|
0.47
|
|
|
$
|
2.43
|
|
|
$
|
3.17
|
|
|
|
|
|
|
|
|
|
Dividends per share
of common stock
|
$
|
0.38
|
|
|
$
|
0.47
|
|
|
$
|
1.34
|
|
|
$
|
1.37
|
|
|
|
|
|
|
|
|
|
Average number of
shares outstanding used in earnings per share (EPS)
calculation:
|
|
|
|
|
|
|
|
Basic
|
887,275,000
|
|
|
910,764,000
|
|
|
899,883,000
|
|
|
917,589,000
|
|
Diluted
|
891,286,000
|
|
|
917,761,000
|
|
|
905,522,000
|
|
|
924,646,000
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Non-GAAP Measures
|
|
|
|
|
|
|
|
|
|
Summary of
Earnings Comparison
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
September
30,
|
|
Nine Months
Ended
September
30,
|
|
2015
|
|
2014
|
|
%
Change
|
|
2015
|
|
2014
|
|
%
Change
|
Income from
continuing operations after income taxes (GAAP)
|
$
|
131
|
|
|
$
|
331
|
|
|
(60)%
|
|
|
$
|
2,126
|
|
|
$
|
2,568
|
|
|
(17)%
|
|
Less: Significant
items benefit (charge) included in income from
continuing operations after income taxes (per Schedule
B)
|
88
|
|
|
(9)
|
|
|
|
|
63
|
|
|
33
|
|
|
|
Non-operating
pension/OPEB costs included in income from continuing operations
after income taxes (3)
|
(74)
|
|
|
(22)
|
|
|
|
|
(210)
|
|
|
(66)
|
|
|
|
Net income
attributable to noncontrolling interest from continuing
operations
|
—
|
|
|
1
|
|
|
|
|
9
|
|
|
10
|
|
|
|
Operating earnings
(Non-GAAP)
|
$
|
117
|
|
|
$
|
361
|
|
|
(68)%
|
|
|
$
|
2,264
|
|
|
$
|
2,591
|
|
|
(13)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EPS from continuing
operations (GAAP)
|
$
|
0.14
|
|
|
$
|
0.36
|
|
|
(61)%
|
|
|
$
|
2.33
|
|
|
$
|
2.76
|
|
|
(16)%
|
|
Less: Significant
items benefit (charge) included in EPS (per Schedule B)
|
0.10
|
|
|
(0.01)
|
|
|
|
|
0.07
|
|
|
0.04
|
|
|
|
Non-operating
pension/OPEB costs included in EPS (3)
|
(0.09)
|
|
|
(0.02)
|
|
|
|
|
(0.23)
|
|
|
(0.07)
|
|
|
|
Operating EPS
(Non-GAAP)
|
$
|
0.13
|
|
|
$
|
0.39
|
|
|
(67)%
|
|
|
$
|
2.49
|
|
|
$
|
2.79
|
|
|
(11)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
E.I. du Pont de
Nemours and Company
Condensed
Consolidated Balance Sheets
(Dollars in
millions, except per share amounts)
|
|
|
|
SCHEDULE A
(continued)
|
|
|
|
|
September
30,
2015
|
|
December
31,
2014
|
Assets
|
|
|
|
|
Current
assets
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
3,324
|
|
|
$
|
6,910
|
|
Marketable
securities
|
|
406
|
|
|
124
|
|
Accounts and notes
receivable, net
|
|
6,656
|
|
|
5,238
|
|
Inventories
|
|
5,888
|
|
|
6,787
|
|
Prepaid
expenses
|
|
287
|
|
|
264
|
|
Deferred income
taxes
|
|
485
|
|
|
532
|
|
Assets of
discontinued operations
|
|
—
|
|
|
6,227
|
|
Total current
assets
|
|
17,046
|
|
|
26,082
|
|
|
|
|
|
|
|
|
Property, plant
and equipment, net of accumulated depreciation
(September 30, 2015 - $14,297; December 31, 2014 -
$13,765)
|
|
9,769
|
|
|
10,008
|
|
Goodwill
|
|
4,249
|
|
|
4,332
|
|
Other intangible
assets
|
|
4,214
|
|
|
4,569
|
|
Investment in
affiliates
|
|
712
|
|
|
762
|
|
Deferred income
taxes
|
|
3,252
|
|
|
3,734
|
|
Other
assets
|
|
1,060
|
|
|
1,003
|
|
Total
|
|
$
|
40,302
|
|
|
$
|
50,490
|
|
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
|
Current
liabilities
|
|
|
|
|
Accounts
payable
|
|
$
|
2,830
|
|
|
$
|
3,786
|
|
Short-term borrowings
and capital lease obligations
|
|
1,781
|
|
|
1,422
|
|
Income
taxes
|
|
569
|
|
|
534
|
|
Other accrued
liabilities
|
|
3,174
|
|
|
5,596
|
|
Liabilities of
discontinued operations
|
|
—
|
|
|
2,467
|
|
Total current
liabilities
|
|
8,354
|
|
|
13,805
|
|
Long-term
borrowings and capital lease obligations
|
|
8,155
|
|
|
9,233
|
|
Other
liabilities
|
|
12,212
|
|
|
13,615
|
|
Deferred income
taxes
|
|
359
|
|
|
459
|
|
Total
liabilities
|
|
29,080
|
|
|
37,112
|
|
|
|
|
|
|
Commitments and
contingent liabilities
|
|
|
|
|
|
|
|
|
|
Stockholders'
equity
|
|
|
|
|
Preferred
stock
|
|
237
|
|
|
237
|
|
Common stock, $0.30
par value; 1,800,000,000 shares authorized;
Issued
at September 30, 2015 - 963,347,000; December 31, 2014 -
992,020,000
|
|
289
|
|
|
298
|
|
Additional paid-in
capital
|
|
10,678
|
|
|
11,174
|
|
Reinvested
earnings
|
|
15,441
|
|
|
16,894
|
|
Accumulated other
comprehensive loss
|
|
(8,911)
|
|
|
(8,556)
|
|
Common stock held in
treasury, at cost (87,041,000 shares at September 30, 2015 and
December 31, 2014)
|
|
(6,727)
|
|
|
(6,727)
|
|
Total DuPont
stockholders' equity
|
|
11,007
|
|
|
13,320
|
|
Noncontrolling
interests
|
|
215
|
|
|
58
|
|
Total
equity
|
|
11,222
|
|
|
13,378
|
|
Total
|
|
$
|
40,302
|
|
|
$
|
50,490
|
|
E.I. du Pont de
Nemours and Company
Condensed
Consolidated Statement of Cash Flows
(Dollars in
millions)
|
|
|
SCHEDULE A
(continued)
|
|
|
Nine Months
Ended
September
30,
|
|
2015
|
|
2014
|
Total
Company
|
|
|
|
Net income
|
$
|
2,215
|
|
|
$
|
2,953
|
|
Adjustments to
reconcile net income to cash used for
operating activities:
|
|
|
|
Depreciation
|
856
|
|
|
944
|
|
Amortization of
intangible assets
|
307
|
|
|
294
|
|
Net periodic pension
benefit cost
|
445
|
|
|
305
|
|
Contributions to
pension plans
|
(260)
|
|
|
(231)
|
|
Gain on sale of
businesses
|
(48)
|
|
|
(418)
|
|
Other operating
activities - net
|
89
|
|
|
272
|
|
Change in operating
assets and liabilities - net
|
(5,449)
|
|
|
(5,921)
|
|
Cash used for
operating activities
|
(1,845)
|
|
|
(1,802)
|
|
|
|
|
|
Investing
activities
|
|
|
|
Purchases of
property, plant and equipment
|
(1,291)
|
|
|
(1,311)
|
|
Investments in
affiliates
|
(59)
|
|
|
(37)
|
|
Payments for
businesses - net of cash acquired
|
(77)
|
|
|
—
|
|
Proceeds from sales
of businesses - net
|
61
|
|
|
727
|
|
Proceeds from sales
of assets - net
|
18
|
|
|
29
|
|
Net increase in
short-term financial instruments
|
(252)
|
|
|
(422)
|
|
Foreign currency
exchange contract settlements
|
543
|
|
|
97
|
|
Other investing
activities - net
|
12
|
|
|
197
|
|
Cash used for
investing activities
|
(1,045)
|
|
|
(720)
|
|
|
|
|
|
Financing
activities
|
|
|
|
Dividends paid to
stockholders
|
(1,210)
|
|
|
(1,268)
|
|
Net increase in
borrowings
|
3,262
|
|
|
749
|
|
Prepayments /
repurchase of common stock
|
(2,353)
|
|
|
(2,000)
|
|
Proceeds from
exercise of stock options
|
208
|
|
|
285
|
|
Cash transferred to
Chemours at spin-off
|
(250)
|
|
|
—
|
|
Other financing
activities - net
|
(87)
|
|
|
1
|
|
Cash used for
financing activities
|
(430)
|
|
|
(2,233)
|
|
|
|
|
|
Effect of exchange
rate changes on cash
|
(266)
|
|
|
(204)
|
|
|
|
|
|
Decrease in cash
and cash equivalents
|
(3,586)
|
|
|
(4,959)
|
|
|
|
|
|
Cash and cash
equivalents at beginning of period
|
6,910
|
|
|
8,941
|
|
|
|
|
|
Cash and cash
equivalents at end of period
|
$
|
3,324
|
|
|
$
|
3,982
|
|
|
|
|
|
Reconciliation of
Non-GAAP Measure
|
|
|
|
Calculation of
Free Cash Flow
|
|
|
|
|
Nine Months
Ended
September
30,
|
|
2015
|
|
2014
|
Cash used for
operating activities
|
$
|
(1,845)
|
|
|
$
|
(1,802)
|
|
Purchases of
property, plant and equipment
|
(1,291)
|
|
|
(1,311)
|
|
Free cash
flow
|
$
|
(3,136)
|
|
|
$
|
(3,113)
|
|
|
|
|
|
(1) See
Schedule B for detail of significant items.
|
(2) The
sum of the individual earnings per share amounts from continuing
operations and discontinued operations may not equal the total
company earnings per share amounts due to rounding.
|
(3) Year
to date September 30, 2015 includes a $23 after-tax exchange loss
on foreign pension balances.
|
E.I. du Pont de
Nemours and Company
Schedule of
Significant Items from Continuing Operations
(Dollars in
millions, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
SCHEDULE
B
|
|
|
|
|
|
|
|
|
|
|
SIGNIFICANT
ITEMS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-tax
|
|
After-tax
|
|
($ Per
Share)
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
1st
Quarter
|
|
|
|
|
|
|
|
|
|
|
|
Separation
transaction costs (1)
|
$
|
(12)
|
|
|
$
|
(3)
|
|
|
$
|
(11)
|
|
|
$
|
(2)
|
|
|
$
|
(0.01)
|
|
|
$
|
—
|
|
Customer claims
recovery (4)
|
35
|
|
|
—
|
|
|
22
|
|
|
—
|
|
|
0.02
|
|
|
—
|
|
Asset impairment
charge (5)
|
(37)
|
|
|
—
|
|
|
(30)
|
|
|
—
|
|
|
(0.03)
|
|
|
—
|
|
Ukraine devaluation
(6)
|
(40)
|
|
|
—
|
|
|
(38)
|
|
|
—
|
|
|
(0.04)
|
|
|
—
|
|
1st Quarter -
Total
|
$
|
(54)
|
|
|
$
|
(3)
|
|
|
$
|
(57)
|
|
|
$
|
(2)
|
|
|
$
|
(0.06)
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2nd
Quarter
|
|
|
|
|
|
|
|
|
|
|
|
Separation
transaction costs (1)
|
$
|
(25)
|
|
|
$
|
(4)
|
|
|
$
|
(38)
|
|
|
$
|
(4)
|
|
|
$
|
(0.04)
|
|
|
$
|
(0.01)
|
|
Restructuring
charges, net (2)
|
(2)
|
|
|
(244)
|
|
|
(2)
|
|
|
(168)
|
|
|
—
|
|
|
(0.18)
|
|
Litigation settlement
(3)
|
112
|
|
|
—
|
|
|
72
|
|
|
—
|
|
|
0.08
|
|
|
—
|
|
Venezuela
devaluation(7)
|
—
|
|
|
(58)
|
|
|
—
|
|
|
(57)
|
|
|
—
|
|
|
(0.06)
|
|
Gain on sale of
business (8)
|
—
|
|
|
391
|
|
|
—
|
|
|
273
|
|
|
—
|
|
|
0.30
|
|
2nd Quarter -
Total
|
$
|
85
|
|
|
$
|
85
|
|
|
$
|
32
|
|
|
$
|
44
|
|
|
$
|
0.04
|
|
|
$
|
0.05
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3rd
Quarter
|
|
|
|
|
|
|
|
|
|
|
|
Separation
transaction costs (1)
|
$
|
(9)
|
|
|
$
|
(10)
|
|
|
$
|
(6)
|
|
|
$
|
(9)
|
|
|
$
|
(0.01)
|
|
|
$
|
(0.01)
|
|
Customer claims
recovery (4)
|
147
|
|
|
—
|
|
|
94
|
|
|
—
|
|
|
0.11
|
|
|
—
|
|
3rd Quarter -
Total
|
$
|
138
|
|
|
$
|
(10)
|
|
|
$
|
88
|
|
|
$
|
(9)
|
|
|
$
|
0.10
|
|
|
$
|
(0.01)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year-to-date
Total(9)
|
$
|
169
|
|
|
$
|
72
|
|
|
$
|
63
|
|
|
$
|
33
|
|
|
$
|
0.07
|
|
|
$
|
0.04
|
|
E.I. du Pont de
Nemours and Company
Schedule of
Significant Items from Continuing Operations
(Dollars in
millions, except per share amounts)
|
|
SCHEDULE B
(continued)
|
|
(1)
|
Third quarter and
first quarter 2015 included charges of $(9) and $(12),
respectively, recorded in other operating charges associated with
transaction costs related to the separation of the Performance
Chemicals segment. Second quarter 2015 included charges of
$(25) associated with transaction costs related to the separation
of the Performance Chemicals segment consisting of $(5) recorded in
other operating charges and $(20) recorded in interest
expense. Second quarter 2015 also includes a tax charge of
$(17) due to a state tax rate change associated with the
separation.
|
|
Third, second and
first quarter 2014 included charges of $(10), $(4) and $(3),
respectively, recorded in other operating charges associated with
transaction costs related to the separation of the Performance
Chemicals segment.
|
|
|
(2)
|
Second quarter 2015
included a $(2) restructuring charge recorded in employee
separation/asset related charges, net associated with the 2014
restructuring program. These adjustments were primarily due to the
identification of additional projects in certain segments, offset
by lower than estimated individual severance costs and workforce
reductions achieved through non-severance programs. The net
reduction impacted segment earnings for the three months ended as
follows: Agriculture - $(4), Electronics & Communications -
$11, Industrial Biosciences - $(1), Nutrition & Health - $(4),
Performance Materials - $(2), Safety & Protection $1, and Other
- $(3).
|
|
Second quarter 2014
included a $(244) restructuring charge recorded in employee
separation/asset related charges, net, consisting of $(150) of
severance and related benefit costs, $(91) of asset shut downs, and
$(3) of other non-personnel charges as a result of the company's
plan to reduce residual costs associated with the separation of the
Performance Chemicals segment and to improve productivity across
all businesses and functions. Pre-tax charges by segment are:
Agriculture - $(47), Electronics & Communications - $(68),
Industrial Biosciences - $(2), Nutrition & Health - $(8),
Performance Materials - $(29), Safety & Protection - $(31),
Other - $(2), and Corporate expenses - $(57).
|
|
|
(3)
|
Second quarter 2015
included a gain of $112, net of legal expenses, recorded in other
income, net related to the company's settlement of a legal claim.
This matter relates to the Safety & Protection
segment.
|
|
|
(4)
|
The company recorded
net insurance recoveries of $147 and $35 in other operating charges
in the third and first quarter 2015, respectively, in the
Agriculture segment, for recovery of costs for customer claims
related to the use of the Imprelis® herbicide. The
company had accruals of $198 related to these customer claims at
September 30, 2015.
|
|
|
(5)
|
During first quarter
of 2015, a $(37) pre-tax impairment charge was recorded
in employee separation / asset related charges, net for a cost
basis investment within the Other segment. The assessment
resulted from the venture's revised operating plan reflecting
underperformance of its European wheat based ethanol facility and
deteriorating European ethanol market conditions. One of the
primary investors has communicated they would not fund the revised
operating plan of the investee. As a result, the carrying
value of our 6% equity investment in this venture exceeds its
fair value.
|
|
|
(6)
|
First quarter 2015
included a charge of $(40) in other income, net associated with
remeasuring the company's Ukrainian hryvnia net monetary assets.
Ukraine's central bank adopted a decision to no longer set the
indicative hryvnia exchange rate. The hryvnia became a
free-floating exchange rate and lost approximately a third of its
value through the quarter.
|
|
|
(7)
|
Second quarter 2014
included a charge of $(58) recorded in other income, net associated
with remeasuring the company's Venezuelan net monetary assets from
the official exchange rate to the SICAD II exchange
system.
|
|
|
(8)
|
Second quarter 2014
included a gain of $391 recorded in other income, net associated
with the sale of Glass Laminating Solutions/Vinyls in the
Performance Materials segment.
|
|
|
(9)
|
Earnings per share
for the year may not equal the sum of quarterly earnings per share
due to the changes in average share calculations.
|
E.I. du Pont de
Nemours and Company
Consolidated Segment
Information
(Dollars in
millions)
|
|
|
|
|
|
|
|
|
SCHEDULE
C
|
|
|
|
|
|
|
|
|
Three Months
Ended
September
30,
|
|
Nine Months
Ended
September
30,
|
SEGMENT NET
SALES
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Agriculture
|
$
|
1,093
|
|
|
$
|
1,563
|
|
|
$
|
8,248
|
|
|
$
|
9,564
|
|
Electronics &
Communications
|
532
|
|
|
620
|
|
|
1,577
|
|
|
1,810
|
|
Industrial
Biosciences
|
305
|
|
|
314
|
|
|
870
|
|
|
925
|
|
Nutrition &
Health
|
810
|
|
|
899
|
|
|
2,449
|
|
|
2,686
|
|
Performance
Materials
|
1,302
|
|
|
1,531
|
|
|
4,021
|
|
|
4,618
|
|
Safety &
Protection
|
831
|
|
|
976
|
|
|
2,663
|
|
|
2,950
|
|
Other
|
—
|
|
|
2
|
|
|
3
|
|
|
4
|
|
Consolidated net
sales
|
$
|
4,873
|
|
|
$
|
5,905
|
|
|
$
|
19,831
|
|
|
$
|
22,557
|
|
|
|
|
|
|
|
|
|
E.I. du Pont de
Nemours and Company
Consolidated Segment
Information
(Dollars in
millions)
|
|
|
|
|
|
|
|
|
|
SCHEDULE C
(continued)
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
September
30,
|
|
Nine Months
Ended
September
30,
|
INCOME FROM
CONTINUING OPERATIONS (GAAP)
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Agriculture
|
|
$
|
(63)
|
|
|
$
|
(56)
|
|
|
$
|
1,878
|
|
|
$
|
2,171
|
|
Electronics &
Communications
|
|
104
|
|
|
90
|
|
|
283
|
|
|
176
|
|
Industrial
Biosciences
|
|
52
|
|
|
42
|
|
|
147
|
|
|
146
|
|
Nutrition &
Health
|
|
102
|
|
|
99
|
|
|
284
|
|
|
282
|
|
Performance
Materials
|
|
317
|
|
|
366
|
|
|
933
|
|
|
1,303
|
|
Safety &
Protection
|
|
156
|
|
|
195
|
|
|
635
|
|
|
536
|
|
Other
|
|
(88)
|
|
|
(50)
|
|
|
(215)
|
|
|
(166)
|
|
Total Segment
PTOI
|
|
580
|
|
|
686
|
|
|
3,945
|
|
|
4,448
|
|
Corporate
expenses
|
|
(120)
|
|
|
(177)
|
|
|
(439)
|
|
|
(617)
|
|
Interest
expense
|
|
(82)
|
|
|
(93)
|
|
|
(260)
|
|
|
(290)
|
|
Non-operating
pension/OPEB costs
|
|
(115)
|
|
|
(32)
|
|
|
(288)
|
|
|
(96)
|
|
Net exchange gains
(losses)
|
|
(36)
|
|
|
250
|
|
|
54
|
|
|
44
|
|
Income before income
taxes
|
|
$
|
227
|
|
|
$
|
634
|
|
|
$
|
3,012
|
|
|
$
|
3,489
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
September
30,
|
|
Nine Months
Ended
September
30,
|
SIGNIFICANT ITEMS BY
SEGMENT (PRE-TAX) (1)
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Agriculture
|
|
$
|
147
|
|
|
$
|
—
|
|
|
$
|
178
|
|
|
$
|
(47)
|
|
Electronics &
Communications
|
|
—
|
|
|
—
|
|
|
11
|
|
|
(68)
|
|
Industrial
Biosciences
|
|
—
|
|
|
—
|
|
|
(1)
|
|
|
(2)
|
|
Nutrition &
Health
|
|
—
|
|
|
—
|
|
|
(4)
|
|
|
(8)
|
|
Performance
Materials
|
|
—
|
|
|
—
|
|
|
(2)
|
|
|
362
|
|
Safety &
Protection
|
|
—
|
|
|
—
|
|
|
113
|
|
|
(31)
|
|
Other
|
|
—
|
|
|
—
|
|
|
(40)
|
|
|
(2)
|
|
Total significant
items by segment
|
|
147
|
|
|
—
|
|
|
255
|
|
|
204
|
|
Corporate
expenses
|
|
(9)
|
|
|
(10)
|
|
|
(26)
|
|
|
(74)
|
|
Interest
expense
|
|
—
|
|
|
—
|
|
|
(20)
|
|
|
—
|
|
Net exchange gains
(losses)
|
|
—
|
|
|
—
|
|
|
(40)
|
|
|
(58)
|
|
Total significant
items before income taxes
|
|
$
|
138
|
|
|
$
|
(10)
|
|
|
$
|
169
|
|
|
$
|
72
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
September
30,
|
|
Nine Months
Ended
September
30,
|
OPERATING EARNINGS
(NON-GAAP)
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Agriculture
|
|
$
|
(210)
|
|
|
$
|
(56)
|
|
|
$
|
1,700
|
|
|
$
|
2,218
|
|
Electronics &
Communications
|
|
104
|
|
|
90
|
|
|
272
|
|
|
244
|
|
Industrial
Biosciences
|
|
52
|
|
|
42
|
|
|
148
|
|
|
148
|
|
Nutrition &
Health
|
|
102
|
|
|
99
|
|
|
288
|
|
|
290
|
|
Performance
Materials
|
|
317
|
|
|
366
|
|
|
935
|
|
|
941
|
|
Safety &
Protection
|
|
156
|
|
|
195
|
|
|
522
|
|
|
567
|
|
Other
|
|
(88)
|
|
|
(50)
|
|
|
(175)
|
|
|
(164)
|
|
Total segment
operating earnings
|
|
433
|
|
|
686
|
|
|
3,690
|
|
|
4,244
|
|
Corporate
expenses
|
|
(111)
|
|
|
(167)
|
|
|
(413)
|
|
|
(543)
|
|
Interest
expense
|
|
(82)
|
|
|
(93)
|
|
|
(240)
|
|
|
(290)
|
|
Operating earnings
before income taxes and exchange gains (losses)
|
|
240
|
|
|
426
|
|
|
3,037
|
|
|
3,411
|
|
Net exchange gains
(losses) (2)
|
|
(36)
|
|
|
250
|
|
|
117
|
|
|
102
|
|
Operating earnings
before income taxes
|
|
$
|
204
|
|
|
$
|
676
|
|
|
$
|
3,154
|
|
|
$
|
3,513
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
E.I. du Pont de
Nemours and Company
Consolidated Segment
Information
(Dollars in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SCHEDULE C
(continued)
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Segment Operating Earnings excluding the impact of currency
(Non-GAAP)
|
|
|
|
|
Segment operating
earnings excluding the impact of currency assumes current operating
earnings results using foreign currency exchange rates in effect
for the comparable prior-year period.
|
|
|
|
|
|
|
|
|
Three Months
Ended
September 30,
2014
|
|
Three Months
Ended
September 30,
2015
|
|
|
Segment Operating
Earnings
|
|
Segment Operating
Earnings
|
|
Impact of
Currency
|
|
Segment Operating
Earnings Excluding Currency
|
|
%
Change
|
Agriculture
|
|
$
|
(56)
|
|
|
$
|
(210)
|
|
|
$
|
(108)
|
|
|
$
|
(102)
|
|
|
(82)%
|
|
Electronics &
Communications
|
|
90
|
|
|
104
|
|
|
1
|
|
|
103
|
|
|
14
|
|
Industrial
Biosciences
|
|
42
|
|
|
52
|
|
|
(3)
|
|
|
55
|
|
|
31
|
|
Nutrition &
Health
|
|
99
|
|
|
102
|
|
|
(17)
|
|
|
119
|
|
|
20
|
|
Performance
Materials
|
|
366
|
|
|
317
|
|
|
(47)
|
|
|
364
|
|
|
(1)
|
|
Safety &
Protection
|
|
195
|
|
|
156
|
|
|
(13)
|
|
|
169
|
|
|
(13)
|
|
Other
|
|
(50)
|
|
|
(88)
|
|
|
—
|
|
|
(88)
|
|
|
(76)
|
|
Total segment
operating earnings
|
|
$
|
686
|
|
|
$
|
433
|
|
|
$
|
(187)
|
|
|
$
|
620
|
|
|
(10)%
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
See Schedule B for detail of significant items.
|
|
|
|
|
|
|
(2)
See Schedule D for additional information on exchange gains
and losses. Year to date September 30, 2015 exchange gains,
on an operating earnings basis (Non-GAAP), excludes the impact of a
$23 exchange loss on non-operating pension.
|
|
|
|
|
|
|
|
|
|
|
|
E.I. du Pont de
Nemours and Company
Reconciliation of
Non-GAAP Measures
(Dollars in
millions, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
SCHEDULE
D
|
|
|
|
|
|
|
|
|
|
Reconciliations of
Adjusted EBIT / EBITDA to Consolidated Income
Statements
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
September
30,
|
|
Nine Months
Ended
September
30,
|
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Income from
continuing operations before income taxes
|
|
$
|
227
|
|
|
$
|
634
|
|
|
$
|
3,012
|
|
|
$
|
3,489
|
|
Add: Significant
items (benefit) charge before income taxes
|
|
(138)
|
|
|
10
|
|
|
(169)
|
|
|
(72)
|
|
Add: Non-operating
pension/OPEB costs (1)
|
|
115
|
|
|
32
|
|
|
311
|
|
|
96
|
|
Operating earnings
before income taxes
|
|
$
|
204
|
|
|
$
|
676
|
|
|
$
|
3,154
|
|
|
$
|
3,513
|
|
Less: Net income
attributable to noncontrolling interests from continuing
operations
|
|
—
|
|
|
1
|
|
|
9
|
|
|
10
|
|
Add: Interest
expense
|
|
|
82
|
|
|
93
|
|
|
240
|
|
|
290
|
|
Adjusted EBIT from
operating earnings
|
|
286
|
|
|
768
|
|
|
3,385
|
|
|
3,793
|
|
Add: Depreciation and
amortization
|
|
291
|
|
|
296
|
|
|
1,036
|
|
|
1,050
|
|
Adjusted EBITDA from
operating earnings
|
|
$
|
577
|
|
|
$
|
1,064
|
|
|
$
|
4,421
|
|
|
$
|
4,843
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Operating Earnings Per Share (EPS) Outlook
|
|
|
|
|
The reconciliation
below represents the company's outlook on an operating earnings
basis, defined as income from continuing operations excluding
significant items and non-operating pension/OPEB costs.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended
December 31,
|
|
|
|
|
|
|
|
2015
Outlook
|
|
2014
Actual
|
Operating EPS
(Non-GAAP)
|
|
|
|
|
|
$
|
2.75
|
|
|
$
|
3.36
|
|
|
|
|
|
|
|
|
|
|
|
Significant
items
|
|
|
|
|
|
|
|
|
Separation
transaction costs
|
|
|
|
|
|
(0.06)
|
|
|
(0.03)
|
|
Gain on sale of
business
|
|
|
|
|
|
—
|
|
|
0.47
|
|
Restructuring charge,
net
|
|
|
|
|
|
—
|
|
|
(0.40)
|
|
Venezuela
devaluation
|
|
|
|
|
|
—
|
|
|
(0.06)
|
|
Customer claims
recovery
|
|
|
|
|
|
0.13
|
|
|
0.14
|
|
Litigation
settlement
|
|
|
|
|
|
0.08
|
|
|
—
|
|
Asset impairment
charge
|
|
|
|
|
|
(0.04)
|
|
|
—
|
|
Ukraine
devaluation
|
|
|
|
|
|
(0.04)
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
Non-operating
pension/OPEB costs - estimate
|
|
|
|
|
|
(0.30)
|
|
|
(0.09)
|
|
|
|
|
|
|
|
|
|
|
|
EPS (GAAP)
|
|
|
|
|
|
$
|
2.52
|
|
|
$
|
3.39
|
|
|
|
|
|
|
|
|
|
|
|
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 on Operating Earnings (2)
|
|
|
|
|
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 pre-tax exchange gains
and losses are recorded in other income, net and the related tax
impact is recorded in provision for (benefit from) income taxes on
the Consolidated Income Statements.
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
September
30,
|
|
Nine Months
Ended
September
30,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Subsidiary
Monetary Position Gain (Loss)
|
|
|
|
|
|
|
|
|
Pre-tax exchange
losses
|
|
$
|
(210)
|
|
|
$
|
(153)
|
|
|
$
|
(297)
|
|
|
$
|
(185)
|
|
Local tax benefits
(expenses)
|
|
67
|
|
|
(117)
|
|
|
(26)
|
|
|
(133)
|
|
Net after-tax impact
from subsidiary exchange losses
|
|
$
|
(143)
|
|
|
$
|
(270)
|
|
|
$
|
(323)
|
|
|
$
|
(318)
|
|
|
|
|
|
|
|
|
|
|
Hedging Program
Gain (Loss)
|
|
|
|
|
|
|
|
|
Pre-tax exchange
gains
|
|
$
|
174
|
|
|
$
|
403
|
|
|
$
|
414
|
|
|
$
|
287
|
|
Tax
expenses
|
|
(63)
|
|
|
(141)
|
|
|
(150)
|
|
|
(100)
|
|
Net after-tax impact
from hedging program exchange gains
|
|
$
|
111
|
|
|
$
|
262
|
|
|
$
|
264
|
|
|
$
|
187
|
|
|
|
|
|
|
|
|
|
|
Total Exchange
Gain (Loss)
|
|
|
|
|
|
|
|
|
Pre-tax exchange
(losses) gains (3)
|
|
$
|
(36)
|
|
|
$
|
250
|
|
|
$
|
117
|
|
|
$
|
102
|
|
Tax benefits
(expenses)
|
|
4
|
|
|
(258)
|
|
|
(176)
|
|
|
(233)
|
|
Net after-tax
exchange losses
|
|
$
|
(32)
|
|
|
$
|
(8)
|
|
|
$
|
(59)
|
|
|
$
|
(131)
|
|
|
|
|
|
|
|
|
|
|
As shown above, the
"Total Exchange Gain (Loss)" is the sum of the "Subsidiary 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, significant items and
non-operating pension/OPEB costs.
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
September
30,
|
|
Nine Months
Ended
September
30,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Income from
continuing operations before income taxes
|
|
$
|
227
|
|
|
$
|
634
|
|
|
$
|
3,012
|
|
|
$
|
3,489
|
|
Add:
Significant items - (benefit) charge (2)
|
|
(138)
|
|
|
10
|
|
|
(169)
|
|
|
(72)
|
|
Non-operating pension/OPEB costs (1)
|
|
115
|
|
|
32
|
|
|
311
|
|
|
96
|
|
Less: Net
exchange gains (losses) (3)
|
|
(36)
|
|
|
250
|
|
|
117
|
|
|
102
|
|
Income from
continuing operations before income taxes, significant
items,
|
|
|
|
|
|
|
|
exchange gains (losses), and non-operating pension/OPEB
costs
|
|
$
|
240
|
|
|
$
|
426
|
|
|
$
|
3,037
|
|
|
$
|
3,411
|
|
|
|
|
|
|
|
|
|
|
Provision for income
taxes on continuing operations
|
|
$
|
96
|
|
|
$
|
303
|
|
|
$
|
886
|
|
|
$
|
921
|
|
Add: Tax
(expenses) benefits on significant items
|
|
(50)
|
|
|
1
|
|
|
(106)
|
|
|
(39)
|
|
Tax benefits on non-operating pension/OPEB costs
|
|
41
|
|
|
10
|
|
|
101
|
|
|
30
|
|
Tax benefits (expenses) on exchange gains/losses
|
|
4
|
|
|
(258)
|
|
|
(176)
|
|
|
(233)
|
|
Provision for income
taxes on continuing earnings, excluding exchange gains
(losses)
|
$
|
91
|
|
|
$
|
56
|
|
|
$
|
705
|
|
|
$
|
679
|
|
|
|
|
|
|
|
|
|
|
Effective income tax
rate
|
|
42.3
|
%
|
|
47.8
|
%
|
|
29.4
|
%
|
|
26.4
|
%
|
Significant items
effect and non-operating pension/OPEB costs effect
|
|
0.3
|
%
|
|
(1.4)%
|
|
|
(1.5)%
|
|
|
(0.4)%
|
|
Tax rate, from
continuing operations before significant items and non-operating
pension/OPEB costs
|
42.6
|
%
|
|
46.4
|
%
|
|
27.9
|
%
|
|
26.0
|
%
|
Exchange gains
(losses) effect
|
|
(4.7)%
|
|
|
(33.3)%
|
|
|
(4.7)%
|
|
|
(6.1)%
|
|
Base income tax rate
from continuing operations
|
|
37.9
|
%
|
|
13.1
|
%
|
|
23.2
|
%
|
|
19.9
|
%
|
|
|
|
|
|
|
|
|
|
(1) Year
to date September 30, 2015, non-operating pension/OPEB costs
includes a $23 exchange loss on foreign pension
balances.
|
(2)
See Schedule B for detail of significant items.
|
(3) Year
to date September 30, 2015 exchange gains, on an operating earnings
basis (Non-GAAP), excludes a $23 exchange loss on non-operating
pension.
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/dupont-reports-3q-operating-eps-of-013-ytd-operating-eps-of-249-300166414.html
SOURCE DuPont