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) July 24, 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
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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. 33-48128, 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 July 24, 1996
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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
July 24, 1996
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EXHIBIT INDEX
Exhibit
Number Description of Exhibits
- ------- ------------------------------------------------------------
99 Copy of the Registrant's Earnings Press Release, dated
July 24, 1996.
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EXHIBIT 99
Contact: Susan Gaffney
(302) 774-2698
Wilmington, Del., July 24 -- DuPont reported earnings
of $1.78 per share for the second quarter of 1996, exceeding the
previous record of $1.70 per share earned in the second quarter
of 1995. Excluding nonrecurring items from both periods, second
quarter results were $1.84 per share, up 5 percent from 1995.
Net income totaled $1 billion compared to $938 million earned in
1995, and marks the first time quarterly net income exceeded
$1 billion.
"Our results this quarter reflect a more positive
environment for our petroleum business and improving economic
conditions in most regions of the world," said DuPont President
and CEO John A. Krol. "Given this business climate, we expect
year-over-year earnings to improve in the second half of 1996."
Chemicals and Specialties sales volumes from continu-
ing operations increased 4 percent compared to last year. Lower
selling prices, principally due to the stronger U.S. dollar
largely offset these volume gains, resulting in Chemicals and
Specialties earnings before nonrecurring items equal to last
year. Results from the Petroleum segment continued strong, with
earnings before nonrecurring items up 15 percent, benefiting
from higher oil and gas prices.
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Sales for the second quarter were $11.1 billion, up
1 percent from last year. Petroleum segment sales were up
9 percent, reflecting higher worldwide oil and natural gas
prices and volumes. Combined sales for Chemicals and
Specialties segments were down 5 percent before adjusting for
changes in business composition. After adjusting to reflect the
absence of elastomers sales, now part of the DuPont Dow
Elastomers joint venture, and the divestiture of medical
products businesses, Chemicals and Specialties sales were up
1 percent, reflecting 4 percent higher volume offset by
3 percent lower selling prices. Volumes were up in all regions,
with the United States up 3 percent, Europe up 2 percent, and
Asia, Latin America and Mexico, on average, up more than
8 percent.
Nonrecurring items were recorded in both second
quarter periods -- a net after-tax charge of $34 million, or
$.06 per share in 1996, and a charge of $29 million, or $.05 per
share, in 1995. Current period charges include an additional
accrual for crop damage claims and legal expenses related to the
recall of "Benlate" 50 DF fungicide, the writedown of certain
petroleum assets and employee separation costs, partly offset by
gains on asset sales and insurance recoveries.
For the first six months of 1996, earnings per share
were $3.35 compared to $3.07 in 1995 with net income of
$1.9 billion, equal to last year. Sales totaled $21.9 billion,
up 2 percent. Excluding nonrecurring items and adjusting for
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interest expense associated with debt incurred to finance the
1995 redemption of stock from Seagram, earnings were 3 percent
higher than last year. Average shares outstanding in the first
half were 9 percent lower than last year as a result of last
year's stock redemption.
The following commentary compares second quarter 1996
results with second quarter 1995, for each industry segment,
excluding the earnings impact of nonrecurring items and adjust-
ing sales for changes in business composition.
Chemicals segment earnings were $165 million, down
$5 million, or 3 percent, as better earnings for fluorochemicals
and specialty chemicals were offset by lower results for white
pigments. Segment sales decreased 1 percent reflecting
6 percent lower selling prices, partly offset by 5 percent
higher sales volume.
Fibers segment earnings of $208 million were up
$5 million, or 2 percent. Higher earnings for "Lycra" brand
spandex were partly offset by lower results for nylon in apparel
markets, and for aramids. Segment sales were 1 percent lower,
reflecting flat volumes and 1 percent lower prices.
Polymers segment earnings were $244 million, up
$17 million, or 7 percent, reflecting improved earnings from
fluoropolymers, automotive products and packaging and industrial
polymers. Partly offsetting these improvements were lower
earnings in elastomers due to DuPont's reduced ownership
interest resulting from the formation of the DuPont Dow
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Elastomers venture. Segment sales were up 5 percent, reflecting
higher sales in all business units except automotive products.
Segment sales volume was up 6 percent, partly offset by
1 percent lower prices.
Petroleum segment earnings were $218 million, up
$29 million, or 15 percent. Upstream earnings were
$175 million, up 41 percent, reflecting higher worldwide crude
oil and U.S. natural gas prices as well as increased volumes
outside the United States. Downstream earnings were
$43 million, down 34 percent from $65 million earned in the
prior year, principally attributable to lower product prices
outside the United States, partly offset by improved U.S.
marketing margins.
Diversified Businesses segment earnings totaled
$300 million, down $17 million or 5 percent. Higher earnings
from a more favorable allocation to DuPont of DuPont Merck
Pharmaceutical venture results were offset by lower earnings
from printing and publishing and agricultural products, and the
loss of ongoing earnings from medical products businesses that
were divested. Segment sales increased 1 percent, reflecting
5 percent higher volume, partly offset by 4 percent lower
selling prices.
7/24/96
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<TABLE>
E. I. DU PONT DE NEMOURS AND COMPANY AND CONSOLIDATED SUBSIDIARIES
<CAPTION>
Three Months Ended Six Months Ended
CONSOLIDATED INCOME STATEMENT<Fa> June 30 June 30
- ------------------------------------------------------------------------------------------------------------
(Dollars in millions, except per share) 1996 1995 1996 1995
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
SALES ................................................... $11,148 $11,076 $21,917 $21,578
Other Income ............................................ 405 247 775 585
------- ------- ------- -------
Total ............................................... 11,553 11,323 22,692 22,163
------- ------- ------- -------
Cost of Goods Sold and Other Expenses ................... 8,296 8,031 16,289 15,634
Selling, General and Administrative Expenses ............ 718 805 1,458 1,522
Depreciation, Depletion and Amortization ................ 605 642 1,258 1,290
Exploration Expenses, Including Dry Hole Costs
and Impairment of Unproved Properties ................. 68 88 147 142
Interest and Debt Expense ............................... 172 236 376 356
------- ------- ------- -------
Total ............................................... 9,859 9,802 19,528 18,944
------- ------- ------- -------
EARNINGS BEFORE INCOME TAXES ............................ 1,694 1,521 3,164 3,219
Provision for Income Taxes .............................. 693 583 1,284 1,322
------- ------- ------- -------
NET INCOME .............................................. $ 1,001 $ 938 $ 1,880 $ 1,897
======= ======= ======= =======
EARNINGS PER SHARE OF COMMON STOCK<Fb> .................. $ 1.78 $ 1.70 $ 3.35 $ 3.07
======= ======= ======= =======
DIVIDENDS PER SHARE OF COMMON STOCK ..................... $ .57 $ .52 $ 1.09 $ .99
======= ======= ======= =======
<FN>
<Fa>Certain reclassifications of 1995 data have been made to conform to 1996
classifications.
<Fb>Earnings per share are calculated on the basis of the following average
number of common shares outstanding:
Three Months Ended Six Months Ended
June 30 June 30
1996 560,546,407 559,128,795
1995 550,445,989 615,537,673
</TABLE>
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<TABLE>
E. I. DU PONT DE NEMOURS AND COMPANY AND CONSOLIDATED SUBSIDIARIES
<CAPTION>
Three Months Ended Six Months Ended
CONSOLIDATED INDUSTRY SEGMENT INFORMATION June 30 June 30
- ---------------------------------------------------------------------------------------------------------------
(Dollars in millions) 1996 1995 1996 1995
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
SALES
- -----
Chemicals .................................... $ 1,081 $ 1,088 $ 2,075 $ 2,123
Fibers ....................................... 1,822 1,832 3,566 3,686
Polymers ..................................... 1,714 1,844 3,498 3,621
Petroleum .................................... 4,963 4,556 9,620 8,809
Diversified Businesses ....................... 1,568 1,756 3,158 3,339
------- ------- ------- -------
Total .................................... $11,148 $11,076 $21,917 $21,578
======= ======= ======= =======
AFTER-TAX OPERATING INCOME<Fa>
- --------------------------
Chemicals .................................... $ 165 $ 177<Fb> $ 287<Fc> $ 342<Fb>
Fibers ....................................... 208 230<Fb> 355<Fc> 430<Fb>
Polymers ..................................... 299<Fd> 227 497<Fd> 459
Petroleum .................................... 177<Fe> 189 391<Fe> 366
Diversified Businesses ....................... 252<Ff><Fg> 254<Fg> 568<Ff><Fg><Fh> 489<Fg>
------- ------- ------- -------
Total .................................... $ 1,101 $ 1,077 $ 2,098 $ 2,086
Interest and Other Corporate
Expenses Net of Tax ........................ (100) (139) (218) (189)
------- ------- ------- -------
NET INCOME ................................... $ 1,001 $ 938 $ 1,880 $ 1,897
- ---------- ======= ======= ======= =======
<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>The Chemicals and Fibers segments include a benefit of $7 and $27,
respectively, principally an adjustment of estimates associated with the
third quarter 1993 restructuring charge.
<Fc>The Chemicals and Fibers segments include a charge of $21 and $32,
respectively, principally for employee separation costs in the United
States.
<Fd>Includes a gain of $55 associated with the formation of the DuPont-Dow
Elastomers joint venture.
<Fe>Includes charges of $63 for writedown of investment in a European natural
gas marketing joint venture, and $22, principally, for employee separa-
tion costs in the United States, partly offset by a net benefit of
$44 related to environmental insurance recoveries.
<Ff>Includes a gain of $41 from the sale of certain medical products busi-
nesses and a charge of $26, principally employee separation costs outside
the United States, associated with the printing and publishing business.
<Fg>Includes a charge of $63 in quarters ended June 30, 1996 and 1995,
associated with "Benlate" 50 DF fungicide recall.
<Fh>Includes a gain of $33 related to sale of stock received in connection
with the previously sold connector systems business.
</TABLE>
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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 Six Months Ended
EXCLUDING IMPACT OF NONRECURRING ITEMS June 30 June 30
- ---------------------------------------------------------------------------------------------------------------
(Dollars in millions) 1996 1995 1996 1995
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Chemicals .................................... $ 165 $ 170 $ 308 $ 335
Fibers ....................................... 208 203 387 403
Polymers ..................................... 244 227 442 459
Petroleum .................................... 218 189 432 366
Diversified Businesses ....................... 300 317 583 552
------ ------ ------ ------
Total .................................... $1,135 $1,106 $2,152 $2,115
Less: Interest and Other Corporate Expenses
Net of Tax ................................. (100) (139) (218) (189)
------ ------ ------ ------
Total .................................... $1,035 $ 967 $1,934 $1,926
====== ====== ====== ======
</TABLE>
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