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): August 13, 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 5. Other Events
------------
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.
Contact: Susan Gaffney
(302) 774-2698
DUPONT CEO AFFIRMS STRATEGY FOR INVESTMENT AUDIENCE;
CITES CHALLENGING THIRD QUARTER
----------------------------------------------------
New York, Aug. 13 -- In a speech to the investment
community here today, DuPont President and CEO Charles O.
Holliday, Jr., reaffirmed his commitment to transform the
company into a faster-growing, more profitable, less cyclical
group of integrated businesses. He also said that the near-term
economic environment presents continuing challenges similar to
those the company experienced at the end of the second quarter.
"We indicted to you last month that our third quarter
earnings would be below last year due to difficult business
conditions. Those conditions include the impact of lower oil
prices, higher quarterly interest expense from acquisitions,
about $100 million lower revenues in agricultural products
resulting from a one-time change in distribution in the third
quarter of 1997, and an extremely difficult Asian environment,
particularly affecting our polyester business. Therefore, we
2
anticipate that our third quarter earnings will most likely be
closer to the low end of the range of analyst estimates,"
Holliday said.
"I would expect by the fourth quarter increased contri-
bution from our productivity efforts, a more normal comparison
in our agricultural products business, and lower interest
expense," Holliday said.
Corporate Transformation
"We are already implementing our strategy to transform
the company," Holliday said. "We have decided to exit the
company's wholly owned energy subsidiary, Conoco, acquired
Merck & Co.'s interest in our pharmaceutical joint venture, are
seeking other acquisitions in the life sciences area, and are
building on the strongest components in DuPont's chemicals and
specialties businesses."
Holliday cited the company's highly profitable differ-
entiated businesses, which today contribute over 50 percent of
chemicals and specialties earnings, as examples of areas where
further investment can strengthen market penetration and
leadership. Included in this group are specialty fibers such as
"Lycra" brand spandex, "Tyvek" spun-bonded olefin and "Kevlar"
aramid fiber, as well as photopolymers and electronic materials.
"The earnings power of these businesses is based on multiple
competitive advantages that cannot be replicated by others.
Technology leadership has enabled DuPont to achieve high market
share and establish strong brand identities," he explained.
3
"Performance improvements in 1999 and 2000 will be
driven primarily by reshaping DuPont's foundation businesses,
such as nylon and polyester, and aggressive productivity
improvements that reduce cost and minimize capital
expenditures," Holliday said.
Holliday also cited the exciting potential of the life
sciences businesses, which are expected to contribute a third of
the company's total earnings in four or five years - up from
about 20 percent today. Holliday noted that DuPont has rich
pipeline of crop protection and pharmaceutical products, as well
as attractive opportunities in nutrition and health. "Accel-
erating the growth in life sciences is key to our strategy to
becoming a faster-growing, more profitable, less cyclical
company," Holliday said.
Founded in 1802, DuPont is a global research and
technology-based life sciences, materials and energy company.
Committed to better things for better living, DuPont serves
worldwide markets including food and nutrition; health care;
agriculture; fashion and apparel; home and construction;
electronics; transportation and energy. The company operates in
about 70 countries and has 98,000 employees. Revenues in 1997
were more than $45 billion.
This release contains forward-looking statements
relating to DuPont's operations that are based on management's
current expectations, estimates and projections. Words such as
4
"expects," "anticipates," "plans," "intends," "projects,"
"indicates," and similar expressions are used to identify such
forward-looking statements. These statements are not guarantees
of future performance and involve certain risks, uncertainties
and assumptions that are difficult to predict. In addition to
the factors discussed in the release, some of the factors that
could cause actual results to differ materially are: fluctua-
tions in oil prices; changing business conditions including
fluctuations in interest rates and other capital market condi-
tions; economic and political conditions in international
markets, particularly Asia; DuPont's ability to successfully
bring new products, particularly crop protection and pharma-
ceutical products, from the pipeline to market; DuPont's ability
to renew its pipeline of new products, particularly crop protec-
tion and pharmaceutical products.
# # #
8/13/98
5
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
August 13, 1998
6