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 22, 1998
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 and/or Equity Securities that may be offered
on a delayed or continuous basis under Registration Statements on Form S-3
(No. 33-53327, No. 33-61339 and No. 33-60069), we hereby file the following
press release.
Exhibit
Number Description of Exhibit
------- -------------------------------------------------
99 Copy of the Registrant's Earnings Press Release,
dated April 22, 1998.
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
April 22, 1998
3
EXHIBIT INDEX
Exhibit
Number Description of Exhibits
- ------- ------------------------------------------------------------
99 Copy of the Registrant's Earnings Press Release, dated
April 22, 1998.
4
EXHIBIT 99
Contact: Susan Gaffney
(302) 774-2698
DUPONT REPORTS FIRST QUARTER 1998 EARNINGS
Wilmington, Del., Apr. 22 -- DuPont reported first
quarter diluted earnings per share before nonrecurring charges
of $.92, compared to $.89 per share in the first quarter last
year, marking the sixteenth consecutive quarter of record
earnings for comparable periods. Including nonrecurring
charges, diluted earnings were $.79 per share.
Highlights Include:
o Record first quarter earnings before nonrecurring
charges, overcoming an estimated 15 percent penalty from
a combination of currency and dilution, as well as
economic weakness in Asia and sharply lower oil prices.
o An 11 percent increase in Chemicals and Specialties
earnings before nonrecurring charges.
o Chemicals and Specialties sales from continuing busi-
nesses up 8 percent, with 9 percent higher volumes
including acquisitions.
o Chemicals and Specialties average worldwide selling
prices up 3 percent excluding negative currency impact.
o Strong performance by Conoco despite sharply lower oil
and gas prices.
EARNINGS PER SHARE COMPARISONS
3 Mos. Ended % Change 3 Mos. Ended
3/31/98 From '97 3/31/97
Underlying
(Diluted EPS) $.92 3 $.89
(Basic EPS) $.93 3 $.90
Reported
(Diluted EPS) $.79 (11) $.89
(Basic EPS) $.80 (11) $.90
=================================================================
5
"A record first quarter performance by Chemicals and
Specialties, combined with a strong performance by Conoco,
enabled us to continue our string of record quarters," said
DuPont President and CEO Charles O. Holliday, Jr. "This
reflects terrific work by our employees worldwide and is a
significant accomplishment when viewed in the context of slower
worldwide growth, a stronger dollar, the economic situation in
Asia and significantly lower oil prices."
Nonrecurring charges totaling $145 million after-tax or
$.13 per share were recorded in the first quarter, $60 million to
revise a prior estimate for the 1997 write-off of acquired
in-process research and development related to the acquisition of
Protein Technologies International, and $85 million related to
the previously announced modernization program for global nylon
operations.
Net income for the quarter before nonrecurring items
totaled $1,051 million, up 3 percent from the $1,020 million in
1997. Sales were $11.0 billion, down 2 percent, principally due
to lower sales by Conoco.
Chemicals and Specialties
Chemicals and Specialties after-tax income before non-
recurring charges was $867 million, up 11 percent.
o Sales for the quarter, including acquisitions, were up
8 percent on a continuing business basis, reflecting
9 percent higher volume, partly offset by 1 percent lower
selling prices.
6
o Regionally volume was up 7 percent in the United States,
up 18 percent in Europe and up 4 percent in Asia.
o Excluding negative currency effects, average worldwide
selling prices would have been up 3 percent, with prices
in the United States up 1 percent and prices outside the
United States up 5 percent.
Petroleum
Conoco, DuPont's energy subsidiary, had earnings of
$287 million, down 13 percent, reflecting significantly lower
crude oil and natural gas prices partly offset by improved
international downstream results, lower exploration costs,
higher natural gas volumes, upstream asset sales, and increased
oil production in countries with lower taxes.
o Downstream operations earned $70 million, up 13 percent
due to higher European refined product margins.
o Upstream operations earned $217 million, down
19 percent. Crude oil prices averaged $13.64 per barrel
for the quarter, $6.88 per barrel or 34 percent less
than last year.
o Worldwide natural gas prices averaged 18 percent lower
than last year, partly offset by 5 percent higher
volumes.
Segment Results
The following commentary compares results for each
industry segment for the first quarter 1998 with the first
quarter 1997 after excluding the earnings impact of nonrecurring
items.
7
Chemicals segment earnings were $177 million compared to
$143 million earned last year, up 24 percent, principally due to
higher earnings from white pigments. Both periods include com-
parable gains from asset sales. Segment sales of $1.0 billion
were 2 percent higher, reflecting 6 percent higher selling
prices and 4 percent lower volume.
Fibers segment earnings of $229 million were essentially
flat compared with the $233 million earned in 1997. Earnings
from specialty fibers ("Lycra" spandex, advanced fibers, and
nonwovens) increased 9 percent, but were offset by lower
earnings from "Dacron" polyester as a result of intense
competitive pressure from Asian imports. Sales of $1.9 billion
were down 1 percent as selling prices averaged 2 percent lower
and sales volumes were 1 percent higher.
Earnings for the polymers segment were $230 million, up
11 percent from $208 million in 1997, principally reflecting
improved results from engineering polymers and fluoropolymers.
Segment sales of $1.7 billion were 6 percent above 1997,
reflecting 6 percent higher volume and flat selling prices.
Petroleum segment earnings were $287 million, down
$44 million or 13 percent from a record first quarter 1997.
U.S. upstream earnings totaled $78 million, down 49 percent
principally due to lower crude oil and natural gas prices,
partly offset by higher natural gas volumes from increasing
8
production in the South Texas fields acquired in 1997. Out-
side the United States, upstream earnings were $139 million, up
19 percent due to North Sea asset sales and lower taxes that
more than offset the effect of lower crude oil prices. U.S.
downstream earnings of $18 million were 25 percent lower,
principally due the loss of production from scheduled main-
tenance turnarounds. Downstream earnings outside the United
States of $52 million were up 37 percent reflecting better
refining and marketing margins.
Life Sciences segment earnings were $150 million, up
6 percent from $141 million in 1997. Pharmaceuticals earnings
were up 40 percent, largely due to improved results for "Cozaar"
and higher DuPont Merck venture sales of "Coumadin." Agricul-
tural products earnings were modestly lower, principally due to
the stronger U.S. dollar. Segment sales including acquisitions
were $701 million, up 12 percent, reflecting 15 percent higher
volume partly offset by 3 percent lower prices.
Diversified businesses earnings were $81 million, up
45 percent from $56 million in 1997. This reflects higher
earnings from photopolymers and electronic materials and coal,
and lower operating losses from the printing and publishing
businesses divested in early March of this year. Segment sales
were $845 million, up 25 percent, including sales from acquisi-
tions. Average selling prices were 7 percent lower.
9
"We must continue to position DuPont to grow and to
deliver more consistent earnings through economic cycles," said
Holliday. "The restructuring program we announced earlier this
month and our commitment to the rapid integration of the busi-
nesses we have acquired will provide increased focus on profit-
able growth to meet shareholder expectations. With favorable
raw materials pricing and less impact from currency in the
second half of the year, we continue to see enough opportunities
to deliver another record year."
###
4/22/98
10
E. I. DU PONT DE NEMOURS AND COMPANY AND CONSOLIDATED SUBSIDIARIES
Three Months Ended
CONSOLIDATED INCOME STATEMENT March 31
- ------------------------------------------------------------------------
(Dollars in millions, except per share) 1998 1997
- -----------------------------------------------------------------------
SALES ........................................... $10,965 $11,211
Other Income .................................... 413 339
------- -------
Total ....................................... 11,378 11,550
------- -------
Cost of Goods Sold and Other Expenses ........... 8,264 8,275
Selling, General and Administrative Expenses .... 650 632
Depreciation, Depletion and Amortization ........ 658<Fa> 604
Exploration Expenses, Including Dry Hole Costs
and Impairment of Unproved Properties ......... 67 91
Interest and Debt Expense ....................... 190 149
Purchased In-Process Research and Development<Fb> 60 -
------- -------
Total ....................................... 9,889 9,751
------- -------
EARNINGS BEFORE INCOME TAXES .................... 1,489 1,799
Provision for Income Taxes ...................... 583 779
------- -------
NET INCOME ...................................... $ 906 $ 1,020
======= =======
EARNINGS PER SHARE OF COMMON STOCK<Fc>:
Basic ......................................... $ .80 $ .90
Diluted ....................................... $ .79 $ .89
======= =======
DIVIDENDS PER SHARE OF COMMON STOCK ............. $ .315 $ .285
======= =======
<FN>
<Fa>Includes supplemental depreciation of $59 for shutdown of certain
Nylon manufacturing facilities.
<Fb>Represents a charge for revision, based on independent appraisals,
of the purchase price allocation in connection with the purchase of
Protein Technologies International, related to the value assigned
to research and development in progress at the time of purchase for
which technological feasibility has not yet been established and no
alternative future use is anticipated. The charge was not tax
effected because this transaction was a stock acquisition rather
than an asset purchase.
<Fc>Earnings per share are calculated on the basis of the following
average number of common shares:
Three Months Ended
March 31
------------------------------
Basic Diluted
------------- -------------
1998 1,128,415,102 1,145,674,145
1997 1,129,554,952 1,148,190,360
11
E. I. DU PONT DE NEMOURS AND COMPANY AND CONSOLIDATED SUBSIDIARIES
Three Months Ended
CONSOLIDATED INDUSTRY SEGMENT INFORMATION March 31
- ------------------------------------------------------------------------
(Dollars in millions) 1998 1997
- -----------------------------------------------------------------------
SALES
- -----
Chemicals ..................................... $ 1,023 $ 1,006
Fibers ........................................ 1,896 1,913
Polymers ...................................... 1,729 1,630
Petroleum ..................................... 4,771 5,360
Life Sciences ................................. 701 625
Diversified Businesses ........................ 845 677
------- -------
Total ..................................... $10,965 $11,211
======= =======
AFTER-TAX OPERATING INCOME
- --------------------------
Chemicals ..................................... $ 177 $ 143
Fibers ........................................ 144<Fa> 233
Polymers ...................................... 230 208
Petroleum ..................................... 287 331
Life Sciences ................................. 90<Fb> 141
Diversified Businesses ........................ 81 56
------- -------
Total ..................................... 1,009 1,112
Interest and Other Corporate
Expenses Net of Tax ......................... (103) (92)
------- -------
NET INCOME .................................... $ 906 $ 1,020
- ---------- ======= =======
<FN>
<Fa>Includes a charge of $85 related to rationalization of global
Nylon operations, principally shutdown of certain manufacturing
facilities and employee separation costs.
<Fb>Includes a charge of $60 for revision, based on independent
appraisals, of the purchase price allocation in connection with
the purchase of Protein Technologies International, related to the
value assigned to research and development in progress at the time
of purchase for which technological feasibility has not yet been
established and no alternative future use is anticipated.
12
E. I. DU PONT DE NEMOURS AND COMPANY AND CONSOLIDATED SUBSIDIARIES
CONSOLIDATED INDUSTRY SEGMENT INFORMATION Three Months Ended
EXCLUDING IMPACT OF NONRECURRING ITEMS March 31
- -----------------------------------------------------------------------
(Dollars in millions) 1998 1997
- ----------------------------------------------------------------------
AFTER-TAX OPERATING INCOME
- --------------------------
Chemicals ..................................... $ 177 $ 143
Fibers ........................................ 229 233
Polymers ...................................... 230 208
Petroleum ..................................... 287 331
Life Sciences ................................. 150 141
Diversified Businesses ........................ 81 56
------ ------
Total ..................................... 1,154 1,112
Interest and Other Corporate
Expenses Net of Tax ......................... (103) (92)
------ ------
NET INCOME .................................... $1,051 $1,020
====== ======
13