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) October 23, 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
1
<PAGE>
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 October 23, 1996
2
<PAGE>
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
October 23, 1996
3
<PAGE>
EXHIBIT INDEX
Exhibit
Number Description of Exhibits
- ------- ------------------------------------------------------------
99 Copy of the Registrant's Earnings Press Release, dated
October 23, 1996.
4
<PAGE>
EXHIBIT 99
Contact: Susan Gaffney
(302) 774-2698
Wilmington, Del., Oct. 23 -- DuPont reported record
third quarter earnings of $1.60 per share, citing strong
upstream petroleum earnings and 6 percent volume growth in its
chemicals and specialties businesses.
Excluding a previously announced nonrecurring charge
of $.08 per share, earnings for the quarter were $1.68,
22 percent higher than the $1.38 per share earned in the third
quarter of 1995. Net income totaled $898 million compared to
$769 million in 1995.
"This is the tenth consecutive quarter where earnings
per share were at record levels versus comparable quarters,"
said President and Chief Executive Officer, John A. Krol. "This
consistent level of performance reflects our employees' dedica-
tion and clear focus on profitable growth worldwide."
Petroleum segment earnings in the current quarter were
up 47 percent from last year and were the highest since the
first quarter 1991. Upstream was particularly strong, with
earnings increasing 96 percent compared to last year on higher
prices and solid production gains. Earnings for Chemicals and
Specialties businesses were mixed, with strong performances from
agricultural products, automotive products, nylon, engineering
polymers, and "Lycra" brand spandex.
5
<PAGE>
Sales for the third quarter were $10.5 billion versus
$10.2 billion last year, up 3 percent. Chemicals and Special-
ties segments sales were $5.6 billion, up 3 percent after
adjusting for changes in business composition resulting from
divestitures and formation of the DuPont Dow Elastomers joint
venture. Worldwide Chemicals and Specialties sales volume
increased 6 percent -- 4 percent in the United States and
7 percent outside the United States. Worldwide Chemicals and
Specialties average selling prices were down 3 percent from last
year, about half due to the adverse effect of the stronger
dollar and the remainder primarily from lower prices for white
pigments and "Dacron" polyester fiber. Petroleum segment sales
were $4.9 billion, up 12 percent over last year. Crude oil
prices averaged $19.85 per barrel for the period, 25 percent
higher than last year. U.S. natural gas prices were 45 percent
higher averaging $1.98 per thousand cubic feet, while worldwide
gas prices increased 32 percent to $2.28 per thousand cubic
feet. Crude oil production and natural gas deliveries increased
5 percent and 12 percent, respectively.
As previously announced, the current quarter includes
an after-tax nonrecurring charge of $47 million, or $.08 per
share, for crop damage claims and legal expenses related to the
recall of "Benlate" 50 DF fungicide. The third quarter of 1995
had no earnings per share effect from nonrecurring items, but
did include $.12 per share income from insurance recoveries
related to environmental remediation.
6
<PAGE>
The following commentary compares third quarter 1996
results with third quarter 1995 for each industry segment, after
adjusting sales for changes in business composition and exclud-
ing the earnings impact of nonrecurring items.
Chemicals segment earnings were $138 million, down
$19 million, or 12 percent, reflecting lower earnings for white
pigments, partly offset by improved results for specialty
chemicals. Segment sales were 3 percent lower, reflecting
10 percent lower selling prices, partly offset by 7 percent
higher sales volume.
Fibers segment earnings of $206 million were up
$17 million, or 9 percent, principally due to better earnings
from nylon, "Lycra" and nonwovens. "Dacron" polyester was
adversely affected by weather-related plant outages and lower
polyester staple prices. Segment sales were up less than
1 percent, as 2 percent higher volume was offset by lower
selling prices.
Polymers segment earnings were $213 million, up
$18 million, or 9 percent, reflecting improved results in
automotive products and engineering polymers. Segment sales
grew 4 percent, reflecting 6 percent higher volume, partly
offset by 2 percent lower selling prices.
Petroleum segment earnings were $256 million, up
$82 million from last year. Upstream earned $163 million,
almost double last year's $83 million, due to higher prices and
production, while keeping nonproduction-related costs under
7
<PAGE>
control. In particular, earnings from Upstream operations
outside the United States improved dramatically to $102 million,
compared to $41 million last year, on strong North Sea per-
formance. Downstream earned $93 million, up slightly from last
year, despite continuing weak margins aggravated by higher crude
costs.
Diversified Businesses segment earnings totaled
$218 million, up $28 million or 15 percent, principally due to
higher earnings from agricultural products. Agricultural
products sales were unusually strong in the third quarter,
reflecting later-than-normal crop plantings in North America.
Segment sales were up 11 percent due to 11 percent higher sales
volume. Selling prices were down less than 1 percent.
For the first nine months of 1996, earnings per share
totaled $4.95 and exceeded by 11 percent the previous record for
nine months earnings of $4.47 per share set in 1995. Net income
for the first nine months of 1996 was $2.8 billion, up 4 percent
compared to $2.7 billion in the same period last year. Year-to-
date sales totaled $32.4 billion versus $31.8 billion last year,
up 2 percent.
"Total return to DuPont shareholders has been about
40 percent so far this year, well above industry averages," said
Krol. "We are pleased with our improved performance, and will
continue to focus on generating shareholder value through
profitable growth by leveraging technologies and expanding
global leadership positions in our businesses."
10/23/96
8
<PAGE>
<TABLE>
E. I. DU PONT DE NEMOURS AND COMPANY AND CONSOLIDATED SUBSIDIARIES
<CAPTION>
Three Months Ended Nine Months Ended
CONSOLIDATED INCOME STATEMENT September 30 September 30
- ------------------------------------------------------------------------------------------------------------
(Dollars in millions, except per share) 1996 1995 1996 1995
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
SALES ................................................... $10,486 $10,200 $32,403 $31,778
Other Income ............................................ 328 220 1,103 805
------- ------- ------- -------
Total ............................................... 10,814 10,420 33,506 32,583
------- ------- ------- -------
Cost of Goods Sold and Other Expenses ................... 7,776 7,502 24,065 23,136
Selling, General and Administrative Expenses ............ 648 723 2,106 2,245
Depreciation, Depletion and Amortization ................ 628 647 1,886 1,937
Exploration Expenses, Including Dry Hole Costs
and Impairment of Unproved Properties ................. 88 79 235 221
Interest and Debt Expense ............................... 171 205 547 561
------- ------- ------- -------
Total ............................................... 9,311 9,156 28,839 28,100
------- ------- ------- -------
EARNINGS BEFORE INCOME TAXES ............................ 1,503 1,264 4,667 4,483
Provision for Income Taxes .............................. 605 495 1,889 1,817
------- ------- ------- -------
NET INCOME .............................................. $ 898 $ 769 $ 2,778 $ 2,666
======= ======= ======= =======
EARNINGS PER SHARE OF COMMON STOCK<Fa> .................. $ 1.60 $ 1.38 $ 4.95 $ 4.47
======= ======= ======= =======
DIVIDENDS PER SHARE OF COMMON STOCK ..................... $ .57 $ .52 $ 1.66 $ 1.51
======= ======= ======= =======
<FN>
<Fa>Earnings per share are calculated on the basis of the following average
number of common shares outstanding:
Three Months Ended Nine Months Ended
September 30 September 30
------------------ -----------------
1996 561,367,436 559,880,456
1995 554,978,850 595,129,571
</TABLE>
9
<PAGE>
<TABLE>
E. I. DU PONT DE NEMOURS AND COMPANY AND CONSOLIDATED SUBSIDIARIES
<CAPTION>
Three Months Ended Nine Months Ended
CONSOLIDATED INDUSTRY SEGMENT INFORMATION September 30 September 30
- ---------------------------------------------------------------------------------------------------------------
(Dollars in millions) 1996 1995 1996 1995
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
SALES
- -----
Chemicals ............................................... $ 1,025 $ 1,052 $ 3,100 $ 3,175
Fibers .................................................. 1,735 1,728 5,301 5,414
Polymers ................................................ 1,573 1,700 5,071 5,321
Petroleum ............................................... 4,929 4,383 14,549 13,192
Diversified Businesses .................................. 1,224 1,337 4,382 4,676
------- ------- ------- -------
Total ............................................... $10,486 $10,200 $32,403 $31,778
======= ======= ======= =======
AFTER-TAX OPERATING INCOME<Fa><Fb>
- --------------------------
Chemicals ............................................... $ 138 $ 160 $ 425<Fc> $ 502<Fd>
Fibers .................................................. 206 193 561<Fc> 623<Fd>
Polymers ................................................ 213 198 710<Fe> 657
Petroleum ............................................... 256 174 647<Ff> 540
Diversified Businesses .................................. 171<Fh> 178 739<Fg><Fh> 667<Fh>
------- ------- ------- -------
Total ............................................... 984 903 3,082 2,989
Interest and Other Corporate
Expenses Net of Tax ................................... (86) (134) (304) (323)
------- ------- ------- -------
NET INCOME .............................................. $ 898 $ 769 $ 2,778 $ 2,666
- ---------- ======= ======= ======= =======
<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>Third quarter 1995 includes a charge of $24 for printing and publishing
operations, principally for employee separation costs in Europe, a
litigation provision of $13 related to a previously sold business, and
adjustments in estimates associated with the third quarter 1993
restructuring charge, which result in the following net (charges)/
benefits:
Chemicals $ 3
Fibers 4
Polymers 3
Diversified Businesses (12)
----
$ (2)
----
</TABLE>
10
<PAGE>
[FN]
<Fc>The Chemicals and Fibers segments include a charge of $21 and $32,
respectively, principally for employee separation costs in the United
States.
<Fd>The Chemicals and Fibers segments also include a benefit of $7 and $27,
respectively, principally an adjustment of estimates associated with the
third quarter 1993 restructuring charge.
<Fe>Includes a gain of $55 associated with the formation of the DuPont-Dow
Elastomers joint venture.
<Ff>Includes charges of $63 for writedown of investment in a European natural
gas marketing joint venture, and $22, principally, for employee
separation costs in the United States, partly offset by a net benefit of
$44 related to environmental insurance recoveries.
<Fg>Includes gains of $41 from the sale of certain medical products
businesses and $33 related to sale of stock received in connection with
the previously sold connector systems business, and a charge of $26,
principally employee separation costs outside the United States,
associated with the printing and publishing business.
<Fh>Includes a charge of $47 in third quarter 1996, and $110 and $63,
respectively, for the nine months ended September 30, 1996 and 1995,
associated with "Benlate" 50 DF fungicide recall.
11
<PAGE>
<TABLE>
E. I. DU PONT DE NEMOURS AND COMPANY AND CONSOLIDATED SUBSIDIARIES
<CAPTION>
After-Tax Operating Income
------------------------------------------------
CONSOLIDATED INDUSTRY SEGMENT INFORMATION Three Months Ended Nine Months Ended
EXCLUDING IMPACT OF NONRECURRING ITEMS September 30 September 30
- ---------------------------------------------------------------------------------------------------------------
(Dollars in millions) 1996 1995 1996 1995
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Chemicals ............................................... $ 138 $ 157 $ 446 $ 492
Fibers .................................................. 206 189 593 592
Polymers ................................................ 213 195 655 654
Petroleum ............................................... 256 174 688 540
Diversified Businesses .................................. 218 190 801 742
------ ------ ------ ------
Total ............................................... $1,031 $ 905 $3,183 $3,020
Less: Interest and Other Corporate Expenses
Net of Tax ............................................ (86) (134) (304) (323)
------ ------ ------ ------
Total ............................................... $ 945 $ 771 $2,879 $2,697
====== ====== ====== ======
</TABLE>
12
