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) January 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
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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. 33-39161
and No. 33-48128 ), we hereby file the following press release.
Exhibit
Number Description of Exhibit
------- -------------------------------------------------
99 Copy of the Registrant's Earnings Press Release,
dated January 26, 1994
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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
January 26, 1994
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EXHIBIT INDEX
Exhibit
Number Description
- ------- -------------------------------------------------------
99 Copy of the Registrant's Earnings Press Release, dated
January 26, 1994.
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EXHIBIT 99
Contact: Mike Ricciuto
(302) 774-2883
WILMINGTON, Del., Jan. 26 -- DuPont fourth quarter
and full year 1993 earnings showed substantial improvement over
1992. The company reported net income of $226 million for the
fourth quarter of 1993, or $.33 per share, compared with a
loss of $230 million, or $.35 per share, for the same period
last year. Excluding nonrecurring items from each period,
fourth quarter earnings were $.48 per share, up from $.14 per
share earned in the fourth quarter, 1992, resulting in the
full year being up 25 percent.
Nonrecurring items in the fourth quarter of 1993
resulted in a net charge of $103 million, or $.15 per share,
reflecting an accrual of $144 million after-tax, or $.21 per
share, for certain product liability claims and legal expenses,
predominantly related to the recall of "Benlate" DF fungicide,
and a $.02 per share charge for early redemption of debt. These
charges were partly offset by a net gain of $52 million, or $.08
per share, on the previously announced sales of Remington Arms
Company and DuPont Canada's polyethylene business. The
additional accrual for "Benlate" DF updates the estimate of
costs relating to the product recall, following the first full
quarter's experience of court trials and review of case histories
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and rate of spending on litigation. The fourth quarter of 1992
included net nonrecurring charges of $327 million, or $.49 per
share, primarily due to restructuring.
"Our fourth quarter results show a substantial
improvement over a year ago," said Chairman Edgar S. Woolard.
"This is reflected particularly in petroleum and in a number
of our chemicals and specialty businesses. Our businesses
have benefited in the quarter from reduced fixed costs, better
results in Europe, and improving economic conditions in the
United States. In addition, aggressive working capital
management substantially reduced inventories, thus boosting
cash flow."
Net income for the full year 1993 was $555 million, or
$.81 per share, compared with a loss for 1992 of $3,927 million,
or $5.85 per share. Excluding nonrecurring items from both
years and one-time charges in 1992 for adoption of new account-
ing standards, 1993 earnings were $1,677 million, or $2.46 per
share, 25 percent higher than the $1,341 million, or $1.98 per
share earned last year.
Total sales for 1993 were $37.1 billion, down
2 percent versus 1992. Combined sales for Chemicals, Fibers,
Polymers and Diversified Businesses were 2 percent lower than
last year, on somewhat higher volumes.
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Said Woolard, "It is gratifying to begin to see the
results of our cash management and productivity improvement
strategies implemented over the last several years. Our focus
on cash management resulted in a reduction in borrowings in
1993 of more than $1 billion. This year's 25 percent increase
in earnings before nonrecurring items was primarily due to
improvement in the petroleum segment, a large part of which is
the result of aggressive cost reduction and restructuring
programs. Chemicals and specialty businesses also benefited
from lower costs, but this was mitigated somewhat by weak
economic conditions in Europe. We will continue with strong
efforts to improve productivity and increase revenues, so that
our businesses grow faster than the growth anticipated in
global economies."
The following compares segment results for the full
year 1993 with prior year, excluding the impact of nonrecurring
items described in the accompanying footnotes:
Petroleum segment earnings were $743 million, up
$310 million, or 72 percent from last year. Upstream earnings
of $441 million were 79 percent higher, reflecting significantly
lower costs, higher international crude oil and worldwide
natural gas volumes, higher U.S. natural gas prices, and lower
effective tax rates. Downstream earnings were $302 million,
62 percent above last year, primarily reflecting lower costs
and higher refined products margins.
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Chemicals segment earnings were $282 million, up
2 percent from $277 million earned last year, reflecting
improvements in chemical specialties, partly offset by lower
results for white pigments. The latter experienced declining
prices for most of the year, despite increases in volume.
Segment sales were down 2 percent, largely due to the currency
effects of a strong dollar.
Fibers segment earnings of $425 million were
11 percent below the $478 million for 1992. This is mainly
attributable to lower earnings for "Lycra" spandex and nylon,
particularly in Europe. Sales were up 2 percent, principally
reflecting additional nylon business acquired from ICI, partly
offset by 3 percent lower selling prices. U.S. selling prices
were flat, while outside the United States, prices were lower by
9 percent, reflecting the stronger dollar.
Earnings for the Polymers segment were $340 million,
unchanged from last year. Improvements in the businesses
supplying automotive original equipment and aftermarkets were
largely offset by lower results in non-automotive markets.
Sales were up less than 1 percent, reflecting 5 percent higher
volume almost entirely offset by lower prices, principally due
to currency effects.
Diversified Businesses segment earnings were
$238 million, up 35 percent from last year. Excluding the
impact of coal results, which were adversely affected for much
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of the year by United Mine Workers strikes, segment earnings
increased $169 million, or 146 percent. This reflects strong
results from crop protection chemicals and substantial cost
improvements in printing and publishing from restructuring.
Segment sales were down 7 percent on lower volume, principally
due to disposition of the connectors business.
1/26/94
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<TABLE>
E. I. DU PONT DE NEMOURS AND COMPANY AND CONSOLIDATED SUBSIDIARIES
<CAPTION>
Three Months Ended Year Ended
CONSOLIDATED INCOME STATEMENT December 31 December 31
- ----------------------------------------------------------------------------------------------------------
(Dollars in millions, except per share) 1993 1992 1993 1992
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
SALES ............................................ $9,251 $9,161 $37,098 $37,799
Other Income ..................................... 235 119 743 553
------ ------ ------- -------
Total ........................................ 9,486 9,280 37,841 38,352
------ ------ ------- -------
Cost of Goods Sold and Other Expenses ............ 7,300<Fa><Fb>7,084 27,951<Fa><Fb>28,609<Fa>
Selling, General and Administrative Expenses ..... 806 957 3,309 3,743
Depreciation, Depletion and Amortization ......... 757 767 2,833 2,655
Exploration Expenses, Including Dry Hole Costs
and Impairment of Unproved Properties .......... 120 119 361 416
Interest and Debt Expense ........................ 142 171 594 643
Restructuring Charges<Fc>......................... - 475 1,835 475
------ ------ ------- -------
Total ........................................ 9,125 9,573 36,883 36,541
------ ------ ------- -------
EARNINGS (LOSS) BEFORE INCOME TAXES .............. 361 (293) 958 1,811
Provision for Income Taxes ....................... 124 (132)<Fd> 392<Fe> 836<Fd>
------ ------ ------- -------
INCOME (LOSS) BEFORE EXTRAORDINARY ITEM AND
TRANSITION EFFECT OF ACCOUNTING CHANGES ........ 237 (161) 566 975
Extraordinary Charge from Early Extinguishment
of Debt ........................................ (11) (69) (11) (69)
Transition Effect of Changes in Accounting
Principles<Ff>.................................. - - - (4,833)
------ ------ ------- -------
NET INCOME (LOSS) ................................ $ 226 $ (230) $ 555 $(3,927)
====== ====== ======= =======
EARNINGS (LOSS) PER SHARE OF COMMON STOCK<Fg>
Income (Loss) Before Extraordinary Item and
Transition Effect of Accounting Changes ...... $ .35 $ (.25) $ .83 $ 1.43
Extraordinary Charge from Early Extinguishment
of Debt ...................................... (.02) (.10) (.02) (.10)
Transition Effect of Changes in Accounting
Principles<Ff>................................ - - - (7.18)
------ ------ ------- -------
NET INCOME (LOSS) .............................. $ .33 $ (.35) $ .81 $ (5.85)
====== ====== ======= =======
DIVIDENDS PER SHARE OF COMMON STOCK .............. $ .44 $ .44 $ 1.76 $ 1.74
====== ====== ======= =======
</TABLE>
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[FN]
<Fa>1993, fourth quarter and year, and 1992 year include charges of $200 and
$212, respectively, associated with the "Benlate" DF fungicide recall.
<Fb>Costs are down approximately $80 due to an inventory decrease under
last-in, first-out inventory method.
<Fc>Includes charges for asset write-downs, employee separation costs,
facility shutdowns, and other restructuring costs. 1992 data have been
reclassified to capture similar charges.
<Fd>Includes exchange gain of $71 for the quarter and $97 for the year
related to unhedged non-U.S. deferred tax liabilities established on
the adoption of SFAS No. 109.
<Fe>Includes a benefit of $265 resulting from tax law changes, primarily in
the United Kingdom.
<Ff>Changes in accounting for postretirement benefits other than pensions and
income taxes resulted in charges to net income of $3,788 ($5.63 per
share) and $1,045 ($1.55 per share), respectively.
<Fg>Earnings per share are calculated on the basis of the following average
number of common shares outstanding:
Year Ended December 31:
1993 -- 676,622,115
1992 -- 673,454,935
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<TABLE>
E. I. DU PONT DE NEMOURS AND COMPANY AND CONSOLIDATED SUBSIDIARIES
<CAPTION>
Three Months Ended Year Ended
CONSOLIDATED INDUSTRY SEGMENT INFORMATION December 31 December 31
- --------------------------------------------------------------------------------------------------------
(Dollars in millions) 1993 1992 1993 1992
- --------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
SALES
- -----
Chemicals ......................................... $ 881 $ 879 $ 3,546 $ 3,617
Fibers ............................................ 1,623 1,486 6,188 6,074
Polymers .......................................... 1,458 1,444 5,869 5,856
Petroleum ......................................... 4,059 3,966 15,771 16,065
Diversified Businesses ............................ 1,230 1,386 5,724 6,187
------ ------ ------- -------
Total ......................................... $9,251 $9,161 $37,098 $37,799
====== ====== ======= =======
AFTER-TAX OPERATING INCOME (LOSS)<Fa><Fb><Fc>
- ---------------------------------
Chemicals ......................................... $ 66<Fd> $ - $ 166<Fd> $ 226
Fibers ............................................ 104 (17) 169 409
Polymers .......................................... 60<Fd> 4 177<Fd> 318
Petroleum ......................................... 163 (2) 812<Fe> 337
Diversified Businesses ............................ (53)<Fd> (138) (407)<Fd> (49)<Ff>
------ ------ ------- -------
Total ......................................... 340 (153) 917 1,241
Interest and Other Corporate
Expenses Net of Tax ............................. (103) (8)<Fg> (351) (266)<Fg>
------ ------ ------- -------
NET INCOME (LOSS)<Fh>.............................. $ 237 $ (161) $ 566 $ 975
- ----------------- ====== ====== ======= =======
<FN>
<Fa>The year ended December 31, 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.
</TABLE>
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[FN]
<Fb>The year ended December 31, 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.
<Fc>1992 includes the following fourth-quarter charges for termination
incentives and payments, as well as certain other charges, related to
business restructurings:
Chemicals $ 51 (1)
Fibers 69 (2)
Polymers 22
Petroleum 96 (3)
Diversified Businesses 91 (4)
$329
(1) Includes $38 charge for project and facility shutdowns.
(2) Includes $38 charge principally for shutdown of fire-damaged
facilities.
(3) Includes $17 charge for shutdown of refinery facilities.
(4) Includes $42 charge principally for withdrawal from certain
printing and publishing business lines.
<Fd>Includes a fourth-quarter net charge of $92 related to certain product
liability claims and litigation costs ($144) of which $126 is
associated with the "Benlate" DF fungicide recall, and a loss on the
sale of a polyethylene business ($17) partly offset by benefit from
sale of Remington Arms Company ($69). The foregoing amounts are
reflected in the Chemicals ($10), Polymers ($25) and Diversified
Businesses ($57) segments.
<Fe>Includes a $21 loss from sale of petroleum-producing properties and a $32
gain from exchange of North Sea properties.
<Ff>Includes a charge of $134 associated with the "Benlate" DF fungicide
recall.
<Fg>Includes an exchange gain of $71 for the quarter and $97 for the year
related to unhedged non-U.S. deferred tax liabilities established on
the adoption of SFAS No. 109.
<Fh>Before extraordinary item and the transition effect of changes in
accounting principles.
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<TABLE>
E. I. DU PONT DE NEMOURS AND COMPANY AND CONSOLIDATED SUBSIDIARIES
<CAPTION>
After-Tax Operating Income
-------------------------------------------------
CONSOLIDATED INDUSTRY SEGMENT INFORMATION Three Months Ended Year Ended
EXCLUDING IMPACT OF NONRECURRING ITEMS December 31 December 31
- --------------------------------------------------------------------------------------------------------
(Dollars in millions) 1993 1992 1993 1992
- --------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Chemicals ......................................... $ 76 $ 51 $ 282 $ 277
Fibers ............................................ 104 52 425 478
Polymers .......................................... 85 26 340 340
Petroleum ......................................... 163 94 743 433
Diversified Businesses ............................ 4 (47) 238 176
---- ---- ------ ------
Total ......................................... 432 176 2,028 1,704
Less: Interest and Other Corporate Expenses
Net of Tax ...................................... (103) (79) (351) (363)
---- ---- ------ ------
$329 $ 97 $1,677 $1,341
==== ==== ====== ======
</TABLE>
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