WILMINGTON, Del., Dec. 11, 2015 /PRNewswire/ -- Today DuPont
announced a 2016 global cost savings and restructuring plan
designed to reduce $700 million in
costs compared with 2015. The 2016 cost reductions include a range
of structural actions across all businesses and staff functions
globally to operate more efficiently by further consolidating
businesses and aligning staff functions more closely with the
businesses. The new plan builds on the company's previous
operational redesign initiative.
The plan further simplifies the company's structure into fewer,
larger businesses with integrated functions, leading to sustainable
cost reductions, faster decision making and closer connections to
end markets. The company will begin implementation of these
changes immediately.
As a result of these actions, the company expects to record a
pre-tax charge to earnings of approximately $780 million, consisting of approximately
$650 million of employee separation
costs and about $130 million of
asset-related charges and contract terminations. Approximately 10
percent of DuPont's global workforce will be impacted.
DuPont also highlighted 2016 macroeconomic expectations.
Given global economic conditions in agriculture and emerging
markets, the company expects sales growth in 2016 to be
challenging. Currency headwinds are expected to be about
$0.25 per share, due to the continued
strengthening of the U.S. dollar primarily against the Brazilian
Real. The company also expects $0.05
to $0.10 per share of pressure from a higher base tax rate,
reflecting expectations of the geographic mix of earnings and cost
savings that will be recognized primarily in the United
States. The company plans to provide full-year 2016 guidance
during its fourth-quarter 2015 earnings announcement scheduled for
Jan. 27, 2016.
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.
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SOURCE DuPont