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) April 24, 1996
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
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Item 7. Financial Statements and Exhibits
---------------------------------
In connection with Debt and/or Equity Securities that may be offered
on a delayed or continuous basis under Registration Statements on Form S-3
(No. 33-48128, No. 33-53327 and No. 33-61339), we hereby file the following
press release.
Exhibit
Number Description of Exhibit
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99 Copy of the Registrant's Earnings Press Release,
dated April 24, 1996
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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
April 24, 1996
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EXHIBIT INDEX
Exhibit
Number Description of Exhibits
- ------- ------------------------------------------------------------
99 Copy of the Registrant's Earnings Press Release, dated
April 24, 1996.
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EXHIBIT 99
Contact: Susan Gaffney
(302) 774-2698
Wilmington, Del., April 24 -- DuPont today reported
first quarter earnings per share of $1.57, compared to $1.40 per
share in the first quarter of 1995. Excluding nonrecurring
items, first quarter results were $1.61, up 15 percent from
1995.
Net income totaled $879 million compared to 1995 first
quarter net income of $959 million. Excluding nonrecurring
items and interest expense associated with debt incurred to
finance the 1995 redemption of stock from Seagram, earnings for
the quarter are about equal to last year. As a result of the
redemption, average shares outstanding were 18 percent lower
than the first quarter 1995, generating higher per share
earnings.
"First quarter results reflect higher earnings in
petroleum, but lower results in a number of our chemicals and
specialties businesses," said DuPont President and CEO John A.
Krol. "Chemicals and specialties continue to face a difficult
business climate in most markets around the world. Although
volumes are up 2 percent from last quarter, they are about
5 percent below last year's record first quarter. While
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indicators are somewhat mixed about near-term prospects for
economic growth, we do expect to see a pickup in economic
activity later this year, particularly in the United States and
Europe," said Krol.
Total company sales were $10.8 billion, up 3 percent
from $10.5 billion last year on higher petroleum revenues.
Petroleum segment sales were $4.7 billion, up $400 million or
9 percent, reflecting higher crude oil prices and natural gas
volumes. Chemicals and specialties sales were $6.1 billion,
down $140 million or 2 percent, reflecting 3 percent higher
average selling prices, which were more than offset by 5 percent
lower volume. Raw material costs on a volume-adjusted basis
were up about 5 percent in chemicals and specialties compared to
last year, while fixed costs were up less than one percent.
Nonrecurring items in the quarter include charges
associated with previously announced employee separations
totaling $53 million after-tax, or $.10 per share, partly offset
by a benefit of $33 million, or $.06 per share, related to sale
of stock received in connection with the previously sold
connector systems business. There were no nonrecurring items in
the first quarter 1995.
The following information compares for each industry
segment first quarter 1996 results with the prior year, exclud-
ing nonrecurring items and reflecting certain reclassifications
as described in the accompanying footnotes.
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Chemicals segment earnings were $143 million, down
13 percent from the $165 million earned last year, principally
reflecting lower earnings from white pigments and fluoro-
chemicals. Segment sales of $1.0 billion were 4 percent lower,
reflecting 4 percent higher prices, more than offset by
8 percent lower sales volume.
Fibers segment earnings of $179 million were
11 percent below the $200 million earned in 1995. This is
principally attributable to lower earnings for nylon and
DACRON(R) polyester, largely due to weakness in U.S. textile
production. Sales of $1.7 billion were down 6 percent,
reflecting 9 percent lower volume, partly offset by 3 percent
higher selling prices.
Earnings for the Polymers segment were $198 million,
down 15 percent from $232 million in 1995. Segment earnings
were negatively affected by higher engineering and preoperating
costs for capacity expansions, investment write-offs, and the
General Motors strike. Segment sales of $1.8 billion were
essentially equal to 1995, reflecting 4 percent higher selling
prices offset by 4 percent lower volume.
Diversified Businesses segment earnings were
$283 million, up 20 percent from $235 million in 1995,
reflecting higher earnings from pharmaceuticals and coal.
Pharmaceuticals benefitted from higher operating earnings and
the more favorable allocation of DuPont Merck joint venture
results to DuPont. Agricultural Products earnings remain strong
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but are somewhat below last year's levels reflecting delayed
crop plantings in North America due to adverse weather
conditions. Segment sales were $1.6 billion, unchanged from
1995, reflecting 1 percent higher selling prices, offset by
1 percent lower sales volume.
Petroleum segment earnings were $214 million, up
21 percent from the $177 million earned in 1995. Upstream
earnings were $191 million, up 18 percent, primarily on higher
crude oil prices and natural gas volumes, partly offset by
higher exploration costs. During the quarter, U.S. Upstream did
not significantly benefit from higher east coast natural gas
prices since a majority of Petroleum's production is located in
the west. Downstream earnings were $23 million, up $8 million
or 53 percent, on higher worldwide refining margins, partly
offset by higher costs, primarily due to start up operations.
"We are gratified with the improved contribution of
our energy business to first quarter performance. Our challenge
is to accelerate progress, particularly in our chemicals and
specialties businesses, in the more difficult business environ-
ment we are encountering. We will continue our drive for
revenue along with a strong focus on cost and productivity
improvement. At the same time, we will continue to selectively
invest in regions and markets where we see the greatest
potential for growth," Krol said.
4/24/96
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E. I. DU PONT DE NEMOURS AND COMPANY AND CONSOLIDATED SUBSIDIARIES
Three Months Ended
CONSOLIDATED INCOME STATEMENT<Fa> March 31
- ----------------------------------------------------------------------
(Dollars in millions, except per share) 1996 1995
- ----------------------------------------------------------------------
SALES .......................................... $10,769 $10,502
Other Income ................................... 370 338
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Total ...................................... 11,139 10,840
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Cost of Goods Sold and Other Expenses .......... 7,993 7,603
Selling, General and Administrative Expenses ... 740 717
Depreciation, Depletion and Amortization ....... 653 648
Exploration Expenses, Including Dry Hole Costs
and Impairment of Unproved Properties ........ 79 54
Interest and Debt Expense ...................... 204 120
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Total ...................................... 9,669 9,142
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EARNINGS BEFORE INCOME TAXES ................... 1,470 1,698
Provision for Income Taxes ..................... 591 739
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NET INCOME ..................................... $ 879 $ 959
======= =======
EARNINGS PER SHARE OF COMMON STOCK<Fb>.......... $ 1.57 $ 1.40
======= =======
DIVIDENDS PER SHARE OF COMMON STOCK ............ $ .52 $ .47
======= =======
<FN>
<Fa>Certain reclassifications of 1995 data have been made to conform
to 1996 classifications.
<Fb>Earnings per share are calculated on the basis of the following
average number of common shares outstanding:
Three Months Ended
March 31
1996 -- 557,711,183
1995 -- 681,352,598
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E. I. DU PONT DE NEMOURS AND COMPANY AND CONSOLIDATED SUBSIDIARIES
Three Months Ended
CONSOLIDATED INDUSTRY SEGMENT INFORMATION March 31
- ----------------------------------------------------------------------
(Dollars in millions) 1996 1995
- ----------------------------------------------------------------------
SALES
- -----
Chemicals ..................................... $ 994 $ 1,035
Fibers ........................................ 1,744 1,854
Polymers ...................................... 1,784 1,777
Petroleum ..................................... 4,657 4,253
Diversified Businesses ........................ 1,590 1,583
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Total ..................................... $10,769 $10,502
======= =======
AFTER-TAX OPERATING INCOME<Fa>
- --------------------------
Chemicals ..................................... $ 122<Fb>$ 165
Fibers ........................................ 147<Fb> 200
Polymers ...................................... 198 232
Petroleum ..................................... 214 177
Diversified Businesses ........................ 316<Fc> 235
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Total ..................................... 997 1,009
Interest and Other Corporate
Expenses Net of Tax<Fa> ..................... (118) (50)
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NET INCOME .................................... $ 879 $ 959
- ---------- ======= =======
<FN>
<Fa>Effective in the first quarter of 1996, the amortization of
capitalized interest associated with property, plant and equipment
is included in After-Tax Operating Income versus the previous
practice of including such amortization in Interest and Other
Corporate Expenses Net of Tax. Prior period data have been
reclassified for comparative purposes. This change has no effect
on Net Income.
<Fb>The Chemicals and Fibers segments include a charge of $21 and $32,
respectively, principally for employee separation costs in the
United States.
<Fc>Includes a benefit of $33 related to sale of stock received in
connection with the previously sold connector systems business.
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