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 23, 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 July 23, 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
July 23, 1997
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EXHIBIT INDEX
Exhibit
Number Description of Exhibits
- ------- ------------------------------------------------------------
99 Copy of the Registrant's Earnings Press Release, dated
July 23, 1997.
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EXHIBIT 99
Contact: Susan Gaffney
(302) 774-2698
Wilmington, Del., July 23 -- DuPont reported net income
of $1.1 billion for the second quarter 1997, the highest for any
quarter in the company's history. Ten percent volume growth in
Chemicals and Specialties businesses and continued strong petro-
leum results increased earnings 14 percent from last year.
"This quarter's record earnings are further confirmation
that we're on track with the strategies we have set to create
value for our shareholders," said John A. Krol, DuPont President
and CEO. "We continue to make progress in growing businesses
where we have both a low-cost and technological advantage."
Earnings per share were $1.01, also a record, compared
to $.89 earned in 1996. Per share data reflect the 2-for-1
stock split that became effective May 15, 1997. Excluding a net
nonrecurring charge of $.03 per share in the second quarter
1996, net income and earnings per share are both up 10 percent.
This quarter's results reflect record earnings from the
Fibers and Polymers segments combined with continued strong per-
formance by Petroleum, particularly in downstream operations.
In addition, the agricultural products business had a strong
quarter, and was a key contributor to sales volume growth in
Chemicals and Specialties.
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Sales for the second quarter totaled $11.4 billion,
2 percent higher than last year. Chemicals and specialties
sales were $6.5 billion, up 6 percent, reflecting 10 percent
higher volumes partly offset by 4 percent lower average selling
prices. Lower selling prices principally reflect a 7 percent
decline in prices outside the United States, largely due to the
stronger dollar. Excluding currency effects, selling prices
were 1 percent lower. Sales volumes grew 10 percent in the
United States and 11 percent in the rest of the world.
Petroleum segment sales for the quarter were
$4.9 billion, down 2 percent from last year. Crude oil prices
averaged $17.78 per barrel for the period, 7 percent lower than
last year. Worldwide gas prices increased 3 percent to $2.10
per thousand cubic feet while U.S. natural gas prices were
essentially flat averaging $1.72 per thousand cubic feet. Crude
oil production decreased 5 percent while natural gas deliveries
were down 2 percent.
The following commentary compares second quarter 1997
results with second quarter 1996, for each industry segment,
excluding the earnings impact of 1996 nonrecurring items.
Chemicals segment earnings were $137 million, down
17 percent from last year principally reflecting lower white
pigments earnings. Segment sales increased 3 percent as
10 percent higher sales volume was partly offset by 7 percent
lower selling prices, primarily due to lower selling prices for
white pigments.
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Fibers segment earnings of $245 million were up
18 percent from $208 million last year, principally reflecting
increased earnings for "Lycra" brand spandex, "Dacron" polyester
and nonwovens. Segment sales were 7 percent higher, reflecting
10 percent higher volume partly offset by 3 percent lower
prices.
Polymers segment earnings were $259 million, up
6 percent from $244 million in 1996. Improved results princi-
pally reflect higher earnings from packaging and industrial
polymers, the DuPont Dow Elastomers joint venture and automotive
products. Segment sales were up 4 percent, reflecting 7 percent
higher volumes partly offset by 3 percent lower prices.
Petroleum segment earnings of $246 million, a second
quarter record, were up 13 percent from $218 million in 1996.
Upstream earnings were $158 million, down 10 percent, largely
reflecting lower crude oil prices and higher exploration costs,
partly offset by higher gas production outside the United States
and lower taxes. Downstream earnings were $88 million, up
105 percent, reflecting higher worldwide refined product
margins. U.S. downstream accounted for most of the improvement,
while outside the United States, results were affected by two
months of scheduled maintenance turnaround at the Humber
refinery in the United Kingdom.
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Life Sciences segment earnings were $244 million,
slightly lower than the $249 million earned in 1996. Excluding
the higher allocation of operating income to DuPont in 1996 from
the DuPont Merck joint venture, earnings from agricultural
products and pharmaceutical operations were up about 20 percent.
Agricultural products sales were up 18 percent, reflecting
19 percent higher volume and 1 percent lower prices.
Diversified Businesses segment earnings totaled
$84 million, up $33 million or 65 percent. Earnings reflect
smaller losses from printing and publishing and the absence of
losses from medical products businesses divested in 1996, partly
offset by lower earnings from films. After adjusting for
divestiture of medical products businesses, segment sales were
flat as 9 percent higher volume was offset by 9 percent lower
selling prices. The decline in selling prices reflects the
effect of a stronger dollar as well as lower prices in polyester
films and printing and publishing.
Net income for the first six months of 1997 was
$2.2 billion, or $1.91 per share, compared to $1.9 billion, or
$1.68 per share, in the same period last year. First half sales
totaled $22.6 billion, up 3 percent.
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"We are well on our way to a fourth consecutive year of
record earnings," said Krol. "Total return to DuPont share-
holders was 36 percent for the first half of this year, exceed-
ing industry averages. Our recently announced agreement to
acquire ICI's white pigments and polyester businesses and the
acquisition of the South Texas gas producing properties are
examples of our commitment to continue to create shareholder
value through profitable, global growth of our core businesses."
7/23/97
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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 June 30 June 30
- -------------------------------------------------------------------------------------------------------------
(Dollars in millions, except per share) 1997 1996 1997 1996
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
SALES ...................................................... $11,402 $11,148 $22,613 $21,917
Other Income ............................................... 313 391 652 753
------- ------- ------- -------
Total .................................................. 11,715 11,539 23,265 22,670
------- ------- ------- -------
Cost of Goods Sold and Other Expenses ...................... 8,328 8,282 16,603 16,267
Selling, General and Administrative Expenses ............... 719 718 1,351 1,458
Depreciation, Depletion and Amortization ................... 584 605 1,188 1,258
Exploration Expenses, Including Dry Hole Costs
and Impairment of Unproved Properties .................... 101 68 192 147
Interest and Debt Expense .................................. 155 172 304 376
------- ------- ------- -------
Total .................................................. 9,887 9,845 19,638 19,506
------- ------- ------- -------
EARNINGS BEFORE INCOME TAXES ............................... 1,828 1,694 3,627 3,164
Provision for Income Taxes ................................. 688 693 1,467 1,284
------- ------- ------- -------
NET INCOME ................................................. $ 1,140 $ 1,001 $ 2,160 $ 1,880
======= ======= ======= =======
EARNINGS PER SHARE OF COMMON STOCK<Fa><Fb> ................. $ 1.01 $ .89 $ 1.91 $ 1.68
======= ======= ======= =======
DIVIDENDS PER SHARE OF COMMON STOCK<Fa> .................... $ .315 $ .285 $ 0.60 $ .545
======= ======= ======= =======
<FN>
<Fa> All per share data and common stock information reflect the 2-for-1
common stock split that became effective May 15, 1997.
<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
------------------ ----------------
1997 1,129,508,955 1,129,531,826
1996 1,121,092,814 1,118,257,590
</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) 1997 1996 1997 1996
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
SALES
- -----
Chemicals ...................................... $ 1,113 $ 1,081 $ 2,119 $ 2,075
Fibers ......................................... 1,950 1,822 3,863 3,566
Polymers ....................................... 1,788 1,714 3,418 3,498
Petroleum ...................................... 4,861 4,963 10,221 9,620
Life Sciences .................................. 958 811 1,583 1,478
Diversified Businesses ......................... 732 757 1,409 1,680
------- ------- ------- -------
Total ...................................... $11,402 $11,148 $22,613 $21,917
======= ======= ======= =======
AFTER-TAX OPERATING INCOME
- --------------------------
Chemicals ...................................... $ 137 $ 165 $ 280 $ 287<Fa>
Fibers ......................................... 245 208 478 355<Fa>
Polymers ....................................... 259 299<Fb> 467 497<Fb>
Petroleum ...................................... 246 177<Fc> 577 391<Fc>
Life Sciences .................................. 244 186<Fd> 385 409<Fd>
Diversified Businesses ......................... 84 66<Fe> 140 159<Fe><Ff>
------- ------- ------- -------
Total ...................................... 1,215 1,101 2,327 2,098
Interest and Other Corporate
Expenses Net of Tax .......................... (75) (100) (167) (218)
------- ------- ------- -------
NET INCOME ..................................... $ 1,140 $ 1,001 $ 2,160 $ 1,880
- ---------- ======= ======= ======= =======
<FN>
<Fa> The Chemicals and Fibers segments include a charge of $21 and $32,
respectively, 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 charge of $63 associated with "Benlate" 50 DF fungicide recall.
<Fe> Includes a gain of $41 from the sale of certain medical products
businesses and a charge of $26, principally, employee separation costs
outside the United States, associated with the printing and publishing
business.
<Ff> 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) 1997 1996 1997 1996
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Chemicals ...................................... $ 137 $ 165 $ 280 $ 308
Fibers ......................................... 245 208 478 387
Polymers ....................................... 259 244 467 442
Petroleum ...................................... 246 218 577 432
Life Sciences .................................. 244 249 385 472
Diversified Businesses ......................... 84 51 140 111
------ ------ ------ ------
Total ...................................... $1,215 $1,135 $2,327 $2,152
Less: Interest and Other Corporate Expenses
Net of Tax ................................... (75) (100) (167) (218)
------ ------ ------ ------
Total ...................................... $1,140 $1,035 $2,160 $1,934
====== ====== ====== ======
</TABLE>
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