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 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 and No. 33-61339), we hereby file the following
press release.
Exhibit
Number Description of Exhibit
------- -------------------------------------------------
99 Copy of the Registrant's Earnings Press Release,
dated January 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
January 24, 1996
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EXHIBIT INDEX
Exhibit
Number Description
- ------- -------------------------------------------------------
99 Copy of the Registrant's Earnings Press Release, dated
January 24, 1996.
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EXHIBIT 99
Contact: Susan Gaffney
(302) 774-2698
WILMINGTON, Del., January 24 -- DuPont reported record
fourth quarter and full-year 1995 earnings per share citing
improved profit margins on revenue growth of 4 percent for the
quarter and 9 percent for the year in its chemicals and
specialties businesses.
Fourth quarter 1995 earnings of $1.13 per share
surpassed previous record fourth quarter earnings of $.95 posted
in 1994. Excluding previously announced nonrecurring charges
totaling $.15 per share, earnings for the quarter were $1.28 per
share, up 35 percent versus prior year.
Full year earnings were $5.61 per share compared to
$4.00 per share in 1994. Excluding nonrecurring items from both
years, 1995 earnings were $5.81 per share, up 43 percent from
$4.07 per share in 1994. The average number of shares outstand-
ing in 1995 declined 14 percent due to the redemption of stock
from Seagram in 1995.
"This was our second consecutive year of record
earnings and significant year-over-year improvement," said
John A. Krol, DuPont president and chief executive officer.
"These outstanding results are a tribute to the talent and
dedication of DuPont's people worldwide. We are pleased with
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the progress we have made to increase profitability and expand
our businesses globally."
"Record results were achieved across a broad span of
businesses including white pigments, agricultural products,
packaging and industrial products, specialty chemicals,
engineering polymers, aramid fiber products and upstream
petroleum," Krol said. "In addition, we were able to generate
net cash flow after dividends of $2.3 billion, $700 million more
than last year. As a result, our program to pay back debt
incurred for redemption of shares from Seagram remains on
track."
Total company sales for the year were $42.2 billion,
up 7 percent from last year. Chemicals and specialties segments
sales were $24.5 billion, up 9 percent. This reflects 4 percent
higher sales volume and 5 percent higher average selling prices,
with about half of the selling price increase attributable to a
weaker U.S. dollar. Outside the United States, volume improved
7 percent, principally reflecting growth in the Asia Pacific and
European regions. U.S. sales volume was up one percent.
Petroleum segment sales were $17.7 billion, 5 percent higher
than last year.
Net income for the year was $3.3 billion, up
21 percent from $2.7 billion earned in 1994. Excluding interest
expense associated with debt incurred to finance the redemption
of stock from Seagram, earnings for the year increased
28 percent.
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As previously announced, after-tax nonrecurring
charges in the quarter of $83 million or $.15 per share included
$38 million for a recent settlement of a nationwide class-action
plumbing systems lawsuit, and $45 million for write-downs of
certain petroleum assets.
The following information compares for each industry
segment the full year 1995 results with prior year, excluding
the impact of nonrecurring items described in the accompanying
footnotes.
Chemicals segment earnings were $649 million, up
66 percent from the $391 million earned last year, principally
reflecting improvement in white pigments and specialty
chemicals. Segment sales of $4.2 billion were 11 percent
higher, reflecting 9 percent higher prices and 2 percent higher
volumes.
Fibers segment earnings of $795 million were
18 percent above the $676 million earned in 1994. This is
principally attributable to improved results for aramid fibers
and Dacron(R) polyester. Sales of $7.2 billion were up
7 percent, reflecting 5 percent higher selling prices, and
2 percent higher volume.
Earnings for the Polymers segment were $876 million,
up 24 percent from $706 million in 1994, reflecting improvement
in most businesses. Engineering polymers, elastomers and
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packaging and industrial polymers had the greatest year-over-
year gains. Segment sales of $7.0 billion were 11 percent above
1994, reflecting 6 percent higher selling prices and 5 percent
higher volume.
Diversified Businesses segment earnings were
$924 million, up 37 percent from $676 million in 1994, princi-
pally reflecting higher earnings in agricultural products and
pharmaceuticals. Pharmaceuticals benefitted from a more
favorable allocation of DuPont Merck joint venture operating
income recognizing the performance of assets originally
contributed by DuPont to the venture. Segment sales were
$6.1 billion, up 7 percent, reflecting 2 percent higher selling
prices and 5 percent higher volume.
Petroleum segment earnings were $700 million, essen-
tially unchanged from the $706 million earned in 1994. Upstream
earnings were a record $509 million, up 8 percent. Upstream
operations outside the United States provided a 14 percent
increase on higher crude oil prices and lower costs, while
domestic upstream improved 2 percent despite 19 percent lower
natural gas prices. Downstream earnings were $191 million, down
19 percent, attributable to lower worldwide refined product
margins. Domestic downstream was up 10 percent over last year,
offsetting the lower margins with aggressive reductions in cost.
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"1995 was a year of rapid global economic change with
the significant volume gains posted early in the year declining
to small gains by the end of the year, principally reflecting
declining growth in Europe and Asia," said Krol. "U.S. sales
volume growth turned slightly positive in the fourth quarter.
We remain optimistic about our ability to perform well in 1996
and will continue our focus on targeted profitable growth, cost
control and capital productivity."
1/24/96
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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) 1995 1994 1995 1994
- ----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
SALES ............................................. $10,385 $10,137 $42,163 $39,333
Other Income ...................................... 294 258 1,099 913
------- ------- ------- -------
Total ......................................... 10,679 10,395 43,262 40,246
------- ------- ------- -------
Cost of Goods Sold and Other Expenses ............. 7,930 7,656 31,162 29,238
Selling, General and Administrative Expenses ...... 750 795 2,995 2,876
Depreciation, Depletion and Amortization .......... 785 806 2,722 2,976
Exploration Expenses, Including Dry Hole Costs
and Impairment of Unproved Properties ........... 110 153 331 357
Interest and Debt Expense ......................... 197 124 758 559
Restructuring<Fb>.................................. - (88) (96) (142)
------- ------- ------- -------
Total ......................................... 9,772 9,446 37,872 35,864
------- ------- ------- -------
EARNINGS BEFORE INCOME TAXES ...................... 907 949 5,390 4,382
Provision for Income Taxes ........................ 280 303<Fc> 2,097 1,655<Fc><Fd>
------- ------- ------- -------
NET INCOME ........................................ $ 627 $ 646 $ 3,293 $ 2,727
======= ======= ======= =======
EARNINGS PER SHARE OF COMMON STOCK<Fe> ............ $ 1.13 $ .95 $ 5.61 $ 4.00
======= ======= ======= =======
DIVIDENDS PER SHARE OF COMMON STOCK ............... $ .52 $ .47 $ 2.03 $ 1.82
======= ======= ======= =======
<FN>
<Fa>Certain reclassifications of 1994 data have been made to conform to
1995 classifications.
<Fb>Reflects adjustments to 1993 estimated charges for asset write-downs,
employee separation costs, facility shutdowns, and other restructuring
costs.
<Fc>Includes a benefit of $30 from adjustment of prior-year tax
provisions.
<Fd>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.
<Fe>Earnings per share are calculated on the basis of the following average
number of common shares outstanding:
Three Months Ended Year Ended
December 31 December 31
1995 555,367,995 585,107,476
1994 680,929,485 679,999,916
</TABLE>
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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) 1995 1994 1995 1994
- ----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
SALES
- -----
Chemicals ........................................... $ 1,006 $ 970 $ 4,181 $ 3,760
Fibers .............................................. 1,801 1,723 7,215 6,767
Polymers ............................................ 1,716 1,639 7,037 6,318
Petroleum ........................................... 4,468 4,470 17,660 16,815
Diversified Businesses .............................. 1,394 1,335 6,070 5,673
------- ------- ------- -------
Total ........................................... $10,385 $10,137 $42,163 $39,333
======= ======= ======= =======
AFTER-TAX OPERATING INCOME<Fa><Fb><Fc>
- --------------------------
Chemicals ........................................... $ 151 $ 125 $ 659<Fd>$ 386
Fibers .............................................. 188 216 826<Fd> 701
Polymers ............................................ 175(e) 194 841<Fe> 717
Petroleum ........................................... 89(f) 118 655<Ff> 680
Diversified Businesses .............................. 175 98 849<Fg> 623<Fg>
------- ------- ------- -------
Total ........................................... 778 751 3,830 3,107
Interest and Other Corporate
Expenses Net of Tax ............................... (151) (105) (537) (380)
------- ------- ------- -------
NET INCOME .......................................... $ 627 $ 646 $ 3,293 $ 2,727
- ---------- ======= ======= ======= =======
<FN>
<Fa>1995 includes, from the third quarter, 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>
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[FN]
<Fb>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
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.
<Fc>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.
<Fd>The Chemicals and Fibers segments reflect an additional benefit of $7
and $27, respectively, principally an adjustment of estimates
associated with the third quarter 1993 restructuring charge.
<Fe>Includes a charge of $38 for costs to settle certain plumbing systems
litigation.
<Ff>Includes a charge of $45 for write-down of certain North American and
European assets.
<Fg>Also includes charges of $63 and $47 associated with "Benlate" DF 50
fungicide recall from the quarters ended June 30, 1995 and 1994,
respectively.
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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) 1995 1994 1995 1994
- ----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Chemicals ........................................... $ 151 $ 103 $ 649 $ 391
Fibers .............................................. 188 191 795 676
Polymers ............................................ 213 199 876 706
Petroleum ........................................... 134 118 700 706
Diversified Businesses .............................. 175 138 924 676
------ ------ ------ ------
Total ........................................... $ 861 $ 749 $3,944 $3,155
Less: Interest and Other Corporate Expenses
Net of Tax ........................................ (151) (105) (537) (380)
------ ------ ------ ------
Total ........................................... $ 710 $ 644 $3,407 $2,775
====== ====== ====== ======
</TABLE>
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