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) June 14, 1999 (June 7, 1999)
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 5. Other Events
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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), the registrant hereby files the
following press release.
Contact: Bill Brown
(302) 992-2566
DUPONT ANNOUNCES POLYESTER RESTRUCTURINGS
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WILMINGTON, Del., June 7 -- DuPont today announced additional actions
in its commitment to improve profitability of its Polyester Enterprise. Under
the plan, polyester production capacity will be better aligned to meet current
market needs, some obsolete assets will be permanently curtailed, and organi-
zations will be streamlined to increase competitiveness. Businesses included
are DuPont "Dacron", DuPont Polyester Films, and DuPont Polyester Resins &
Intermediates.
The restructuring will result in the elimination of approximately 800
DuPont positions and 600 contractor positions globally or about 14 percent of
the global Polyester Enterprise work force. Approximately 80 percent of the
eliminated positions will be in North America.
Estimated annual cost savings of pretax $90 million are expected to
begin accruing in the fourth quarter of this year. DuPont expects to take a
second quarter nonrecurring charge to earnings of $.04 per share for employee
separation costs. Charges related to asset write-offs are under review, but
will likely total an additional $.02 to $.04 per share.
"The deep and prolonged decline in the global polyester market is
driving fundamental structural change in the industry, making it imperative
that we take additional steps now to strengthen our businesses," said George
MacCormack, group vice president, DuPont Polyester Enterprise. "This is a
difficult time for everyone involved, but it reflects the incredibly intense
competition facing all segments of the polyester industry today."
Despite these immediate issues, DuPont remains encouraged by the
long-term prospects for polyester, according to MacCormack. The company is
implementing a new business model for its $2.8 billion Polyester Enterprise
and recently announced intentions to form joint ventures with Alpek of Mexico
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and Teijin of Japan for polyester filament in the Americas; with Sabanci of
Turkey for polyester intermediates, resins and fibers in Greater Europe; and
with Teijin for films globally. DuPont-Akra Polyester, a joint venture with
Alpek for Polyester staple in the Americas, began operations on April 1.
DuPont employees whose positions have been declared excess can take
advantage of the transition packages available in their country or region.
U.S. employees leaving DuPont, for example, will receieve a package providing
them with transition payments depending on length of service, benefits
assistance, and educational assistance.
DuPont is a science company, delivering science-based solutions that
make a difference in people's lives in food and nutrition; health care;
apparel; home and construction; electronics; and transportation. Founded in
1802, the company operates in 65 countries and has 92,000 employees.
Forward-Looking Statements: This news release contains forward-looking state-
ments based on management's current expectations, estimates and projections.
All statements that address expectations or projections about the future
including statements about the company's strategy for growth, product
development, market position, expected expenditures and financial results are
forward-looking statements. Some of the forward-looking statements may be
identified by words like "expects," "anticipates," "plans," "intends,"
"projects," "indicates," and similar expressions. These statements are not
guarantees of future performance and involve a number of risks, uncertainties
and assumptions. Many factors, including those discussed more fully elsewhere
in this release and in DuPont's filings with the Securities and Exchange
Commission, particularly its latest annual report on Form 10-K, as well as
others, could cause results to differ materially from those stated. These
factors include, but are not limited to changes in the laws, regulations,
policies and economic conditions of countries in which the company does
business; competitive pressures; successful integration of structural changes,
including acquisitions, divestitures and alliances; failure of the company or
related third parties to become Year 2000 capable; research and development of
new products, including regulatory approval and market acceptance.
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6/7/99
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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
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D. B. Smith
Assistant Controller
June 14, 1999
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