SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of Earliest Event Reported) October 26, 1994
E. I. du Pont de Nemours and Company
(Exact Name of Registrant as Specified in Its Charter)
Delaware 1-815 51-0014090
(State or Other Jurisdiction (Commission (I.R.S Employer
of Incorporation) File Number) Identification No.)
1007 Market Street
Wilmington, Delaware 19898
(Address of principal executive offices)
Registrant's telephone number, including area code: (302) 774-1000
1
Item 7. Financial Statements and Exhibits
In connection with Debt Securities that may be offered on a delayed
or continuous basis under Registration Statements on Form S-3 (No. 33-48128
and No. 33-53327), we hereby file the following press release.
Exhibit
Number Description of Exhibit
------- -------------------------------------------------
99 Copy of the Registrant's Earnings Press Release,
dated October 26, 1994
2
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on its behalf
by the undersigned hereunto duly authorized.
E. I. DU PONT DE NEMOURS AND COMPANY
(Registrant)
/s/ D. B. Smith
------------------------------------
D. B. Smith
Assistant Controller
October 26, 1994
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EXHIBIT INDEX
Exhibit
Number Description
- ------- -------------------------------------------------------
99 Copy of the Registrant's Earnings Press Release, dated
October 26, 1994.
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EXHIBIT 99
Contact: Mike Ricciuto
(302) 774-2883
WILMINGTON, Del., October 26 -- DuPont reported net
income for the third quarter 1994 of $647 million, or $.95 per
share, record earnings for any third quarter. This compares to
a net loss of $680 million, or $1.01 per share, for the third
quarter of 1993.
Last year's third quarter included nonrecurring
charges of $1.3 billion after-tax for restructurings, and tax
benefits of $265 million resulting from tax law changes. The
current quarter includes several offsetting nonrecurring items
and tax benefits that, in total, have no effect on earnings per
share. After adjusting both periods to exclude net nonrecurring
charges and tax benefits, earnings were up 86 percent.
"This marks the third consecutive quarter of
significantly improved earnings, as ongoing benefits from cost
reduction and growth in global markets were major contributors
to the bottom line," said Chairman Edgar S. Woolard Jr. "As a
result, we are on track to achieve record earnings for the year.
This performance confirms that transformation efforts to make
all of our businesses globally competitive are working. We are
very pleased with the accomplishments our people have made this
year on many fronts -- business growth, continued cost reduc-
tion, productivity improvements and strong cash generation --
and importantly, we see opportunity for continued improvements
in the future."
5
Earnings improved in all chemical and specialties
segments, principally driven by higher sales volumes and reduced
fixed costs. Further, the coal business rebounded from last
year's strike-impaired results. The Petroleum segment continued
to perform well in a challenging industry environment.
Total company sales for the third quarter were
$9.8 billion, up 7 percent from prior year. Petroleum segment
sales were up 9 percent, principally reflecting increased U.S.
refinery inputs and the impact of higher worldwide excise taxes.
Combined segments other than Petroleum were up 5 percent, all
from higher sales volume, as price levels, on average, were
about equal to last year. The largest percentage changes in
sales volume were in the European and Asian regions.
The following compares business segment results for
the third quarter of 1994 with the same period last year,
excluding the impact of nonrecurring items and special tax
benefits described in the accompanying segment footnotes:
Chemicals segment earnings were $104 million, up
$58 million, or 126 percent, principally attributable to
improved results for chemical specialties. Sales were up
11 percent, reflecting 9 percent higher volume and 2 percent
higher prices.
6
Fibers segment earnings were $164 million, up
$55 million, or 50 percent, principally reflecting higher
sales for nylon, nonwovens, and "Lycra" spandex. Segment sales
rose 6 percent, reflecting 6 percent higher sales volume, as
average selling prices remained unchanged.
Polymers segment earnings were $177 million, up
$106 million, or 149 percent from last year. Engineering
polymers, packaging and industrial polymers, and elastomers all
continued strong. Segment sales were up 14 percent after
adjusting for the absence of a previously sold polyethylene
business. The sales improvement reflects 15 percent higher
volume, partly offset by 1 percent lower prices.
Diversified Businesses segment earnings totaled
$135 million, up $129 million from last year. This reflects
the recovery of coal earnings which were adversely affected last
year by strikes, and higher earnings from crop protection
chemicals and medical products. Segment sales were up 1 percent
after adjusting for the absence of the sporting goods business
which was sold last year. Sales volume was equal to last year,
while prices were 1 percent higher, primarily reflecting a
weaker U.S. dollar.
Petroleum segment earnings were $172 million, down
5 percent from prior year. Upstream earnings were $84 million,
23 percent lower than last year, attributable to lower
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international gas volumes, higher worldwide exploration costs,
lower U.S. natural gas prices and crude oil volumes, more than
offsetting lower costs. Downstream earnings were $88 million,
up 22 percent, largely reflecting higher U.S. refined product
margins and refinery inputs.
Earnings per share for the first nine months of 1994
were a record $3.05. This compares with $.48 earned in 1993.
Excluding nonrecurring charges and tax benefits from both
periods, year-to-date earnings were $3.12 per share versus
$1.98 last year, up 58 percent. Year-to-date sales totaled
$29.2 billion, 5 percent higher than prior year. In addition,
strong earnings and spending controls have generated
$1.8 billion of net cash flow for the first nine months of this
year.
10/26/94
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E. I. DU PONT DE NEMOURS AND COMPANY AND CONSOLIDATED SUBSIDIARIES
Three Months Ended Nine Months Ended
CONSOLIDATED INCOME STATEMENT<Fa> September 30 September 30
- ----------------------------------------------------------------------------------------------------
(Dollars in millions, except per share) 1994 1993 1994 1993
- ----------------------------------------------------------------------------------------------------
SALES ............................................ $ 9,845 $ 9,231 $29,196 $27,847
Other Income ..................................... 184 147 667 508
------- ------- ------- -------
Total ........................................ 10,029 9,378 29,863 28,355
------- ------ ------- -------
Cost of Goods Sold and Other Expenses ............ 7,373 6,951 21,540 20,823
Selling, General and Administrative Expenses ..... 708 782 2,081 2,331
Depreciation, Depletion and Amortization ......... 797<Fb> 716 2,170<Fb> 2,076
Exploration Expenses, Including Dry Hole Costs
and Impairment of Unproved Properties .......... 92 91 204 241
Interest and Debt Expense ........................ 145 132 435 452
Restructuring Charges<Fc>......................... - 1,835 - 1,835
------- ------- ------- -------
Total ........................................ 9,115 10,507 26,430 27,758
------- ------- ------- -------
EARNINGS (LOSS) BEFORE INCOME TAXES .............. 914 (1,129) 3,433 597
Provision for Income Taxes ....................... 267<Fd> (449)<Fe> 1,352<Fd> 268<Fe>
------- ------- ------- -------
NET INCOME (LOSS) ................................ $ 647 $ (680) $ 2,081 $ 329
======= ======= ======= =======
EARNINGS (LOSS) PER SHARE OF COMMON STOCK<Ff>..... $ .95 $ (1.01) $ 3.05 $ .48
======= ======= ======= =======
DIVIDENDS PER SHARE OF COMMON STOCK .............. $ .47 $ .44 $ 1.35 $ 1.32
======= ======= ======= =======
<FN>
<Fa>Certain reclassifications of 1993 data have been made to conform to 1994
classifications.
<Fb>Includes $115 related to write-down of certain North Sea oil properties
held for sale.
<Fc>Includes charges for asset write-downs, employee separation costs,
facility shutdowns, and other restructuring costs.
<Fd>Includes a benefit of $127 principally related to a favorable change in
tax status resulting from a transfer of properties among certain North
Sea affiliates.
<Fe>Includes a benefit of $265 resulting from tax law changes, primarily in
the United Kingdom.
<Ff>Earnings per share are calculated on the basis of the following average
number of common shares outstanding:
Nine Months Ended September 30:
1994 -- 679,686,654
1993 -- 676,367,531
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E. I. DU PONT DE NEMOURS AND COMPANY AND CONSOLIDATED SUBSIDIARIES
Three Months Ended Nine Months Ended
CONSOLIDATED INDUSTRY SEGMENT INFORMATION September 30 September 30
- ----------------------------------------------------------------------------------------------------------------
(Dollars in millions) 1994 1993 1994 1993
- ----------------------------------------------------------------------------------------------------------------
SALES
- -----
Chemicals ........................................ $ 983 $ 884 $ 2,790 $ 2,665
Fibers ........................................... 1,677 1,588 5,044 4,565
Polymers ......................................... 1,577 1,424 4,679 4,411
Petroleum ........................................ 4,344 3,995 12,345 11,712
Diversified Businesses ........................... 1,264 1,340 4,338 4,494
------- ------ ------- -------
Total ........................................ $ 9,845 $9,231 $29,196 $27,847
======= ====== ======= =======
AFTER-TAX OPERATING INCOME (LOSS)<Fa><Fb><Fc>
- ---------------------------------
Chemicals ........................................ $ 77 $ (60) $ 261 $ 100
Fibers ........................................... 164 (147) 485 65
Polymers ......................................... 193 (67) 523 117
Petroleum ........................................ 146 239 562 649<Fd>
Diversified Businesses ........................... 169 (582) 525<Fe> (354)
------- ------ ------- -------
Total ........................................ 749 (617) 2,356 577
Interest and Other Corporate
Expenses Net of Tax ............................ (102) (63) (275) (248)
------- ------ ------- -------
NET INCOME (LOSS) ................................ $ 647 $ (680) $ 2,081 $ 329
- ----------------- ======= ====== ======= =======
<FN>
<Fa>1994 includes the following third-quarter (charges)/benefits:
Chemicals $(27) (1)
Polymers 16 (2)
Petroleum (26) (2)
Diversified Businesses 34 (2)
----
$ (3)
====
(1) Associated with discontinuation of certain products and asset sales
and write-downs.
(2) Reflects adjustments in estimates associated with the third quarter
1993 restructuring charge. In addition, the Petroleum segment
also includes additional charges for employee separation costs, a
loss of $95 from write-down of certain North Sea oil properties
held for sale and a benefit of $127 principally related to a
favorable change in tax status resulting from a transfer of
properties among certain North Sea affiliates.
10
[FN]
<Fb>1993 includes the following third-quarter charges for asset write-downs,
employee separation costs, facility shutdowns, and other restructuring
costs:
Chemicals $ 112 (1)
Fibers 266 (2)
Polymers 148 (3)
Petroleum 172 (4)
Diversified Businesses 597 (5)
------
$1,295
======
(1) Includes $59 for asset write-downs and facility shutdowns for the
fluorochemicals and specialty chemicals businesses.
(2) Includes $46 for facility shutdowns and asset write-downs,
primarily for the nylon business.
(3) Includes $64 for shutdown of a portion of a polymers plant in
LaPorte, Texas.
(4) Includes $147 for asset write-downs of certain North American
petroleum-producing properties.
(5) Includes $448 for asset write-downs, primarily intangibles and
facilities for the printing and publishing business.
<Fc>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.
<Fd>Includes a $21 loss from sale of petroleum-producing properties and a $32
gain from exchange of North Sea properties.
<Fe>Includes $47 charge associated with "Benlate" DF 50 fungicide recall.
11
E. I. DU PONT DE NEMOURS AND COMPANY AND CONSOLIDATED SUBSIDIARIES
After-Tax Operating Income
CONSOLIDATED INDUSTRY SEGMENT INFORMATION ----------------------------------------------------------
EXCLUDING IMPACT OF NONRECURRING ITEMS Three Months Ended Nine Months Ended
AND TAX BENEFITS September 30 September 30
- ----------------------------------------------------------------------------------------------------------------
(Dollars in millions) 1994 1993 1994 1993
- ----------------------------------------------------------------------------------------------------------------
Chemicals ........................................ $ 104 $ 46 $ 288 $ 206
Fibers ........................................... 164 109 485 321
Polymers ......................................... 177 71 507 255
Petroleum ........................................ 172 181 588 580
Diversified Businesses ........................... 135 6 538 234
----- ---- ------ ------
Total ........................................ 752 413 2,406 1,596
Less: Interest and Other Corporate Expenses
Net of Tax ..................................... (102) (63) (275) (248)
----- ---- ------ ------
$ 650 $350 $2,131 $1,348
===== ==== ====== ======
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