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 22, 1997
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. 33-53327, 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 22, 1997
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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
October 22, 1997
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EXHIBIT INDEX
Exhibit
Number Description of Exhibits
- ------- ------------------------------------------------------------
99 Copy of the Registrant's Earnings Press Release, dated
October 22, 1997.
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EXHIBIT 99
Contact: Susan Gaffney
(302) 774-2698
Wilmington, Del., Oct. 22 -- DuPont reported third
quarter earnings, before nonrecurring charges, of $.86 per
share, compared to $.84 per share in the third quarter of 1996.
A net loss of $17 million, or $.02 per share, was
recorded after reflecting net charges for nonrecurring items
of $998 million, or $.88 per share. Nonrecurring items are
principally the previously announced write-off of acquired
in-process research and development associated with the
acquisition of a 20 percent interest in Pioneer Hi-Bred
International, Inc., and charges in connection with the planned
divestiture of certain printing and publishing businesses.
Excluding nonrecurring items, net income for the first
nine months was up 9 percent.
"In recent months we've aggressively pursued our long-
term strategies to profitably grow DuPont and create value for
our shareholders," said DuPont President and CEO John A. Krol.
"In the third quarter, our underlying business continued to
perform at record levels, driven by strong volume growth from
our Chemicals and Specialties businesses and record earnings
from Petroleum. At the same time, we announced several major
acquisitions in key areas of our business portfolio which will
position us for sustained profitable growth."
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The company has also recently announced an agreement to
divest its hydrogen peroxide business and a letter of intent to
form two new ventures with American Electric Power to provide
energy management and capital to large industrial and commercial
customers.
Sales for the third quarter totaled $11.1 billion. C&S
sales were $5.8 billion, up 5 percent on an ongoing business
basis, reflecting 8 percent higher volumes partly offset by
3 percent lower average selling prices. Lower selling prices
result from an 8 percent decline in prices outside the United
States, entirely due to the stronger dollar. Sales volumes were
up 4 percent in the United States, 10 percent in Europe,
15 percent in Asia Pacific, and 18 percent in the rest of the
world.
Petroleum segment sales for the quarter were
$5.3 billion, up 8 percent from last year. Worldwide refined
product sales were up 11 percent and gas deliveries outside the
United States were up 20 percent. Crude oil prices averaged
$17.96 per barrel for the period, 10 percent lower than last
year. Worldwide gas prices were essentially flat at $2.27 per
thousand cubic feet. Crude oil production was down 6 percent.
Third quarter nonrecurring items include an after-tax
one-time charge of $850 million, or $.75 per share, to write-off
acquired in-process research and development associated with the
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Pioneer transaction, $220 million, or $.19 per share, in connec-
tion with the planned divestiture of global graphic arts films
and offset printing plates businesses, and a gain of
$72 million, or $.06 per share, from the sale by DuPont Merck
Pharmaceutical Company of its generic and multisource product
lines.
The following commentary compares third quarter 1997
results with third quarter 1996, for each industry segment,
excluding the earnings impact of nonrecurring items from both
years.
Chemicals segment earnings were $154 million, up
12 percent from $138 million last year principally reflecting
higher earnings from white pigments and specialty chemicals.
Segment sales increased 4 percent as 6 percent higher sales
volume was partly offset by 2 percent lower selling prices.
Fibers segment earnings of $238 million were up
16 percent from $206 million last year, principally reflecting
increased earnings for "Dacron" polyester, "Lycra" brand
spandex, and aramids, partly offset by lower nylon earnings.
Nylon earnings were adversely affected by the stronger dollar
and higher ingredients costs due to supply disruptions. Segment
sales were 9 percent higher, reflecting 12 percent higher volume
partly offset by 3 percent lower selling prices.
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Polymers segment earnings were $228 million, up
7 percent from $213 million in 1996. Results principally
reflect higher earnings from the DuPont Dow Elastomers venture,
automotive products, and packaging and industrial polymers.
Segment sales were up 7 percent, reflecting 9 percent higher
volume partly offset by 2 percent lower prices.
Petroleum segment earnings of $282 million, a third
quarter record, were up 10 percent from $256 million in 1996.
This is the ninth consecutive quarterly year-over-year earnings
improvement. Strong U.S. Downstream margins, higher gas volumes
outside the United States and lower taxes contributed to the
earnings improvement, partly offset by lower crude oil prices
and production, and higher exploration and refinery turnaround
expenses. The quarter also included an after-tax gain from the
sale of certain Norwegian producing properties that was offset
by litigation settlement expenses. Upstream earnings totaled
$175 million, up 7 percent, and Downstream earnings were
$107 million, up 15 percent.
Life Sciences segment earnings were $122 million versus
the $178 million earned in 1996. Excluding the higher alloca-
tion of operating income to DuPont in 1996 from the DuPont Merck
joint venture, Life Sciences segment earnings were down
7 percent, with higher pharmaceutical earnings offset by lower
results in Agricultural Products. Agricultural Products sales
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were down 9 percent, compared to a seasonally stronger third
quarter last year, reflecting 6 percent lower volume and
3 percent lower prices.
Diversified Businesses segment earnings totaled
$52 million, up $12 million or 30 percent from $40 million in
1996. Both the current quarter and the third quarter 1996
reflect significant operating losses from the printing and
publishing businesses to be divested. Higher earnings versus
last year reflect better results from films and photopolymers
and electronic materials. After adjusting for divestiture of
medical products businesses, the segment had a 9 percent
increase in volume offset by 8 percent lower selling prices.
The decline in selling prices is attributable to lower prices
for polyester films and the effect of a stronger dollar.
Net income, including nonrecurring items, was
$2.1 billion, or $1.89 per share, for the first nine months of
1997, compared to $2.8 billion, or $2.47 per share, in the same
period last year. Excluding nonrecurring items from both years,
net income was $3.1 billion versus $2.9 billion last year, up
9 percent. Year-to-date sales were $33.7 billion compared to
$32.4 billion for 1996.
10/22/97
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<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) 1997 1996 1997 1996
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
SALES ...................................................... $11,136 $10,486 $33,749 $32,403
Other Income ............................................... 410<Fa> 319 1,062<Fa> 1,072
------- ------- ------- -------
Total .................................................. 11,546 10,805 34,811 33,475
------- ------- ------- -------
Cost of Goods Sold and Other Expenses ...................... 8,455 7,767 25,058 24,034
Selling, General and Administrative Expenses ............... 644 648 1,995 2,106
Depreciation, Depletion and Amortization ................... 597 628 1,785 1,886
Exploration Expenses, Including Dry Hole Costs
and Impairment of Unproved Properties .................... 129 88 321 235
Interest and Debt Expense .................................. 155 171 459 547
Purchased In-Process Research and Development<Fb> .......... 850 - 850 -
Write-down of Assets and Related Costs<Fc> ................. 340 - 340 -
------- ------- ------- -------
Total .................................................. 11,170 9,302 30,808 28,808
------- ------- ------- -------
EARNINGS BEFORE INCOME TAXES ............................... 376 1,503 4,003 4,667
Provision for Income Taxes ................................. 393<Fb> 605 1,860<Fb> 1,889
------- ------- ------- -------
NET INCOME (LOSS) .......................................... $ (17) $ 898 $ 2,143 $ 2,778
======= ======= ======= =======
EARNINGS (LOSS) PER SHARE OF COMMON STOCK<Fd> .............. $ (.02) $ .80 $ 1.89 $ 2.47<Fe>
======= ======= ======= =======
DIVIDENDS PER SHARE OF COMMON STOCK ........................ $ .315 $ .285 $ .915 $ .83
======= ======= ======= =======
<FN>
<Fa> Includes a benefit of $115 from the Company's equity interest in the
gain on the sale by The DuPont Merck Pharmaceutical Co. of its generic
and multisource product lines.
<Fb> On September 18, 1997 the Company acquired a 20% interest in Pioneer
Hi-Bred International, Inc. for about $1,700. The charge of $850
represents the estimated portion of the purchase price attributable to
the acquisition of research and development in progress at the time of
acquisition for which technological feasibility has not yet been
established and no alternative future use is anticipated. Purchase
price allocations are based on preliminary assumptions that are subject
to revision following completion of an independent valuation by an
outside appraisal firm. This charge was not tax effected because the
transaction was a stock acquisition rather than an asset purchase.
<Fc> Represents charges associated with the pending sale of the Company's
global graphic arts films and offset printing plates businesses.
</TABLE>
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[FN]
<Fd> 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
------------------ -----------------
1997 1,131,012,611 1,130,030,845
1996 1,122,734,872 1,119,760,912
<Fe> Earnings per share of $2.47 does not equal the sum of quarterly earnings
per share due to changes in average share calculations.
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<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) 1997 1996 1997 1996
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
SALES
- -----
Chemicals ...................................... $ 1,064 $ 1,025 $ 3,183 $ 3,100
Fibers ......................................... 1,885 1,735 5,748 5,301
Polymers ....................................... 1,688 1,573 5,106 5,071
Petroleum ...................................... 5,342 4,929 15,563 14,549
Life Sciences .................................. 474 522 2,057 2,000
Diversified Businesses ......................... 683 702 2,092 2,382
------- ------- ------- -------
Total ...................................... $11,136 $10,486 $33,749 $32,403
======= ======= ======= =======
AFTER-TAX OPERATING INCOME (LOSS)
- ---------------------------------
Chemicals ...................................... $ 154 $ 138 $ 434 $ 425<Fa>
Fibers ......................................... 238 206 716 561<Fa>
Polymers ....................................... 228 213 695 710<Fb>
Petroleum ...................................... 282 256 859 647<Fc>
Life Sciences .................................. (656)<Fd> 131<Fe> (271)<Fd> 540<Fe>
Diversified Businesses ......................... (168)<Ff> 40 (28)<Ff> 199<Fg>
------- ------- ------- -------
Total ...................................... 78 984 2,405 3,082
Interest and Other Corporate
Expenses Net of Tax .......................... (95) (86) (262) (304)
------- ------- ------- -------
NET INCOME (LOSS) .............................. $ (17) $ 898 $ 2,143 $ 2,778
- ----------------- ======= ======= ======= =======
<FN>
<Fa> The Chemicals and Fibers segments include a charge of $21 and $32, respec-
tively, principally for employee separation costs in the United States.
<Fb> Includes a gain of $55 associated with the formation of the DuPont Dow
Elastomers joint venture.
<Fc> Includes charges of $63 for write-down 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.
<Fd> Includes a benefit of $72 from the Company's equity interest in the sale
by DuPont Merck of its generic and multisource product lines and an esti-
mated charge of $850, associated with the agricultural products business,
related to the acquisition of research and development in progress at the
time of acquisition for which technological feasibility has not yet been
established and no alternative future use is anticipated.
<Fe> Includes a charge of $47 in third quarter and $110 for nine months
associated with "Benlate" 50 DF fungicide recall.
<Ff> Includes a charge of $220 for the write-down of assets held for sale and
other related costs associated with the pending sale of the Company's
global graphic arts films and offset printing plates businesses.
<Fg> Includes gains of $41 from the sale of certain medical products busi-
nesses 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.
</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 Nine Months Ended
EXCLUDING IMPACT OF NONRECURRING ITEMS September 30 September 30
- -------------------------------------------------------------------------------------------------------------
(Dollars in millions) 1997 1996 1997 1996
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Chemicals ...................................... $ 154 $ 138 $ 434 $ 446
Fibers ......................................... 238 206 716 593
Polymers ....................................... 228 213 695 655
Petroleum ...................................... 282 256 859 688
Life Sciences .................................. 122 178 507 650
Diversified Businesses ......................... 52 40 192 151
------- ------- ------- -------
Total ...................................... 1,076 1,031 3,403 3,183
Interest and Other Corporate Expenses
Net of Tax ................................... (95) (86) (262) (304)
------- ------- ------- -------
Total ...................................... $ 981 $ 945 $ 3,141 $ 2,879
======= ======= ======= =======
</TABLE>
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