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 25, 1995
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. 33-48128
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 January 25, 1995
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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 25, 1995
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EXHIBIT INDEX
Exhibit
Number Description
- ------- -------------------------------------------------------
99 Copy of the Registrant's Earnings Press Release, dated
January 25, 1995.
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EXHIBIT 99
Contact: Mike Ricciuto
(302) 774-2883
WILMINGTON, Del., January 25 -- DuPont fourth quarter
and full-year 1994 earnings were at record levels, up substan-
tially from 1993. The Company reported net income for the
fourth quarter of 1994 of $646 million, or $.95 per share,
bringing full-year net income to $2.7 billion, or $4.00 per
share. This compares to 1993 fourth quarter and full-year
earnings per share of $.33 and $.81, respectively.
Excluding nonrecurring items from both years, 1994
fourth quarter net income was $644 million, or $.95 per share,
as compared to $329 million, or $.48 per share in 1993, up
96 percent. On the same basis, full-year 1994 earnings per
share were $4.07, up 65 percent from $2.46 per share earned in
1993.
"1994 was a terrific year for DuPont," said Chairman
Edgar S. Woolard. "Our record performance is directly tied to
the determination of our people to transform the company and
build healthy businesses by focusing on customers and con-
trolling costs. During 1994 we were able to increase sales
volume in chemical and specialties by 9 percent, and generate
net cash flow of $1.6 billion."
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Total company sales for the year were $39.3 billion,
versus $37.1 billion last year, up 6 percent. Sales for
chemical and specialties segments were $22.5 billion. After
adjusting both years for acquisitions and divestitures, sales
were up 8 percent, with 9 percent higher volume. Regionally,
Europe showed the greatest improvement in sales, with volume up
14 percent. Although selling prices trended upward throughout
1994, the full-year average price level was one percent below
the 1993 average. Petroleum segment sales were $16.8 billion,
7 percent over last year.
Fourth quarter 1994 reflects several nonrecurring
items including an additional accrual for product liability
claims and legal expenses related to the recall of "Benlate"
DF 50 fungicide, changes in estimates for certain restructuring
costs taken in 1993, and tax benefits. In the aggregate,
however, these items had no effect on earnings per share. Last
year's fourth quarter included a net nonrecurring charge of
$103 million, or $.15 per share, principally reflecting
additional product liability accruals, partly offset by
a gain on the sale of the sporting goods business.
The following compares segment results for the full
year 1994 with prior year, excluding the impact of nonrecurring
items described in the accompanying footnotes:
Chemicals segment earnings were $391 million, up
39 percent from $282 earned last year, principally reflecting
improvement in specialty chemicals and fluorochemicals. Segment
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sales of $3.8 billion were 9 percent higher, after adjusting
both years for changes in business composition. Sales volume
was up 10 percent, with most of the gains attributable to
markets outside of the United States. While selling prices were
trending upward during the year, average prices for the year
were 1 percent below last year.
Fibers segment earnings of $676 million were
59 percent above the $425 million earned in 1993. This is
attributable to improved results for nylon, aramids, and non-
wovens. Sales of $6.8 billion were up 9 percent. Excluding the
acquisition of ICI's nylon business, sales were up 5 percent,
reflecting 6 percent higher volume, principally outside the
United States, partly offset by 1 percent lower average selling
prices.
Earnings for the Polymers segment were $706 million,
more than double the $340 million earned last year, reflecting
improvement across most businesses. Significant improvements
were recorded in engineering polymers, packaging and industrial
polymers, elastomers, fluoroproducts, and automotive products.
Segment sales of $6.3 billion were 12 percent over 1993 after
adjusting for divested businesses. This results from 13 percent
higher sales volume, with increases in all regions, and
1 percent lower selling prices.
Diversified Businesses segment showed the greatest
improvement, with earnings at $676 million versus the
$238 million earned last year. This reflects higher sales and
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lower costs in crop protection chemicals, better pharmaceutical
results, and significantly higher coal earnings compared to last
year's results, which were adversely affected by strikes.
Segment sales of $5.7 billion were 5 percent over 1993 after
adjusting for the absence of the sporting goods business, which
was sold last year. Sales volume was up 7 percent, while
average prices were down about 2 percent.
Petroleum earnings were $706 million, down 5 percent
from last year on weaker fourth quarter Downstream results.
Upstream earned $471 million, up 7 percent, reflecting lower
costs, higher international crude volumes and gas prices, and
net benefits associated with portfolio restructuring programs.
Lower crude oil and U.S. gas prices partly offset the improve-
ment. Downstream earned $235 million, down 22 percent from last
year, on lower refined product margins and significant equipment
downtime at several refineries in the fourth quarter.
"During 1994, our cost control efforts began to pay
off at the same time economic and market conditions improved,"
said Woolard. "Looking ahead in 1995, we expect that economic
growth in the U.S. will slow only slightly, and will remain
strong in other regions. Our businesses are well positioned to
continue their global expansion and benefit from the momentum
and excellent results achieved in 1994."
1/25/95
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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<Fa> December 31 December 31
- ----------------------------------------------------------------------------------------------------
(Dollars in millions, except per share) 1994 1993 1994 1993
- ----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
SALES ............................................ $10,137 $ 9,251 $39,333 $37,098
Other Income ..................................... 292 235 947 743
------- ------- ------- -------
Total ........................................ 10,429 9,486 40,280 37,841
------- ------ ------- -------
Cost of Goods Sold and Other Expenses<Fb> ........ 7,734 7,356<Fc> 29,316 28,179<Fc>
Selling, General and Administrative Expenses ..... 807 750 2,888 3,081
Depreciation, Depletion and Amortization ......... 730 757 2,900 2,833
Exploration Expenses, Including Dry Hole Costs
and Impairment of Unproved Properties .......... 151 120 355 361
Interest and Debt Expense ........................ 146 142 581 594
Restructuring<Fd> ................................ (88) - (142) 1,621
Write-Down of Intangible Assets<Fe> .............. - - - 214
------- ------- ------- -------
Total ........................................ 9,480 9,125 35,898 36,883
------- ------- ------- -------
EARNINGS BEFORE INCOME TAXES ..................... 949 361 4,382 958
Provision for Income Taxes ....................... 303<Ff> 124 1,655<Fg> 392<Fh>
------- ------- ------- -------
INCOME BEFORE EXTRAORDINARY ITEM ................. 646 237 2,727 566
Extraordinary Charge from Early Extinguishment
of Debt ........................................ - (11) - (11)
------- ------- ------- -------
NET INCOME ....................................... $ 646 $ 226 $ 2,727 $ 555
======= ======= ======= =======
EARNINGS PER SHARE OF COMMON STOCK<Fi>
Income Before Extraordinary Item ............... $ .95 $ .35 $ 4.00 $ .83
Extraordinary Charge from Early Extinguishment
of Debt ...................................... - (.02) - (.02)
------- ------- ------- -------
NET INCOME ..................................... $ .95 $ .33 $ 4.00 $ .81
======= ======= ======= =======
DIVIDENDS PER SHARE OF COMMON STOCK .............. $ .47 $ .44 $ 1.82 $ 1.76
======= ======= ======= =======
</TABLE>
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[FN]
<Fa>Certain reclassifications of 1993 data have been made to conform to 1994
classifications.
<Fb>Includes charges of $100 for quarter and $175 for year 1994 and $200 for
quarter and year 1993 associated with the "Benlate" DF 50 fungicide
recall.
<Fc>Costs are down approximately $80 due to an inventory decrease under
last-in, first-out inventory method.
<Fd>1993 includes charges for asset write-downs, employee separation costs,
facility shutdowns, and other restructuring costs. 1994 reflects
adjustments in estimates for such items.
<Fe>Reflects write-down of intangible assets associated with the printing and
publishing business.
<Ff>Includes a benefit of $30 from adjustment of prior-year tax provisions.
<Fg>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.
<Fh>Includes a benefit of $265 resulting from tax law changes, primarily in
the United Kingdom.
<Fi>Earnings per share are calculated on the basis of the following average
number of common shares outstanding:
Year Ended December 31:
1994 -- 679,999,916
1993 -- 676,622,115
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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) 1994 1993 1994 1993
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
SALES
- -----
Chemicals ........................................ $ 970 $ 881 $ 3,760 $ 3,546
Fibers ........................................... 1,723 1,623 6,767 6,188
Polymers ......................................... 1,639 1,458 6,318 5,869
Petroleum ........................................ 4,470 4,059 16,815 15,771
Diversified Businesses ........................... 1,335 1,230 5,673 5,724
------- ------ ------- -------
Total ........................................ $10,137 $9,251 $39,333 $37,098
======= ====== ======= =======
AFTER-TAX OPERATING INCOME (LOSS)<Fa><Fb><Fc><Fd>
- ---------------------------------
Chemicals ........................................ $ 125 $ 66<Fe> $ 386 $ 166<Fe>
Fibers ........................................... 216 104 701 169
Polymers ......................................... 194 60<Fe> 717 177<Fe>
Petroleum ........................................ 118 163 680 812<Ff>
Diversified Businesses ........................... 98 (53)<Fe> 623 (407)<Fe><Fg>
------- ------ ------- -------
Total ........................................ 751 340 3,107 917
Interest and Other Corporate
Expenses Net of Tax ............................ (105) (103) (380) (351)
------- ------ ------- -------
NET INCOME ....................................... $ 646 $ 237<Fh> $ 2,727 $ 566<Fh>
- ---------- ======= ====== ======= =======
<FN>
<Fa>1994 includes the following fourth-quarter (charges)/benefits:
Chemicals $ 22 (1)
Fibers 25 (1)
Polymers (5) (1)
Diversified Businesses (40) (1)(2)
----
$ 2
====
(1) Reflects adjustments in estimates associated with the third quarter
1993 restructuring charge.
(2) Includes charges of $63 for the "Benlate" DF 50 fungicide recall
($110 for the year including second-quarter charge of $47) and $27
for the write-down of assets and discontinuation of certain
products, and a benefit of $30 from adjustment of prior-year tax
provisions.
</TABLE>
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[FN]
<Fb>The year ended December 31, 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.
<Fc>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 413 (5)
------
$1,111
======
(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 $264 for asset write-downs, primarily facilities for the
printing and publishing business.
<Fd>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.
<Fe>Includes a 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.
<Ff>Includes a $21 loss from sale of petroleum-producing properties, and a $32
gain from exchange of North Sea properties.
<Fg>Reflects a charge of $184 for the write-down of intangible assets
associated with the printing and publishing business.
<Fh>Before extraordinary item.
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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) 1994 1993 1994 1993
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Chemicals ........................................ $ 103 $ 76 $ 391 $ 282
Fibers ........................................... 191 104 676 425
Polymers ......................................... 199 85 706 340
Petroleum ........................................ 118 163 706 743
Diversified Businesses ........................... 138 4 676 238
------ ----- ------ ------
Total ........................................ 749 432 3,155 2,028
Less: Interest and Other Corporate Expenses
Net of Tax ..................................... $ (105) $(103) $ (380) $ (351)
------ ----- ------ ------
$ 644 $ 329 $2,775 $1,677
====== ===== ====== ======
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</TABLE>
