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) February 23, 2000 (2/22/2000)
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, No. 33-60069 and No. 333-86363), the registrant
hereby files the following press release.
DuPont Contact: Clif Webb
[email protected]
-----------------------------
302-774-4005
DuPont Reviews Progress Toward Double-Digit Earnings Growth
WILMINGTON, Del., Feb. 22 - At a meeting here today for securities
analysts and investors, DuPont's Chairman and Chief Executive Officer,
Charles O. Holliday, Jr., outlined the significant efforts underway to create
short-term double-digit earnings growth and longer-term success in higher
valued businesses.
Holliday, joined by members of his leadership team, briefed a large
group of securities analysts and institutional investors on the progress and
prospects for growth.
"DuPont is energized for earnings growth," Holliday said. "The global
economy, combined with our three-track program for sustainable growth of
knowledge intensity, integrated science and productivity, puts us in the best
position in four years."
Holliday reviewed the growth potential across the company, stressing
the specific drivers for each group of businesses. He indicated that to
achieve the targeted double-digit earnings growth the company would look for
6 percent revenue growth, while working over time to boost return on invested
capital back to the high teens. Data was provided for earnings before
interest, taxes, depreciation and amortization (EBITDA) and free cash flow and
is attached.
Key points from the business reviews included:
- DuPont Biosolutions Businesses, including DuPont's Agricultural
businesses, Nutrition and Health and Bio-Based Materials, together have the
capability of 20 percent annual growth rates.
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- Agricultural businesses -- the intent is to redefine the agri-
cultural value chain, turning the existing seed-to-consumer commodity system
into one of integrated efficiencies and values. As the total value of the
system grows, all participants gain from new product opportunities and
efficiencies. DuPont expects to capture opportunities and wealth through
cross-selling, new business services, branded products and share gain.
- Nutrition and Health -- DuPont has the leading technology position
in soy food ingredients and healthy soy protein. With recent U.S. Food and
Drug Administration approval of health claims for soy protein, and DuPont's
ability to improve the taste and digestibility of soy, DuPont and General
Mills Inc. have formed a joint venture to accelerate consumer acceptance of
soy foods. At the same time, DuPont's Protein Technologies International
business continues its aggressive program to develop soy protein products that
could give considerable health benefits to consumers.
- Bio-Based Materials -- Bio-3GT, 1,3propanediol (PDO), produced via
plant biotechnology, is expected to be the first bio-based fiber DuPont will
bring to market. A pilot plant is being completed in 2000, and commerciali-
zation with revenues of $50-$100 million is anticipated by 2004.
- Public Acceptance -- To facilitate product acceptance, particularly
in food industries, DuPont is actively leading and participating in industry
efforts to expand the public debate over biotechnology. The company believes
that public dialog should include objective discussion of the potential uses
of biotechnology with discussion of benefits and risks.
- DuPont Pharmaceuticals reaffirmed its strategy to grow through
augmentations that build on the company's existing therapeutic competencies.
Sales for "Coumadin" (warfarin sodium tablets USP) Crystalline and SustivaTM
(efavirenz) are expected to continue strong in 2000. The business also
affirmed plans for equalization of earnings for the anti-hypertensive drug,
"Cozaar" (losartan) is year. DuPont expects that the annual earnings growth
rate for DuPont Pharmaceuticals should exceed 20 percent in 2000.
- Approximately 75 percent of DuPont's earnings come from four
traditional high value business segments: Specialty Polymers, Specialty
Fibers, Performance Coatings and Polymers and Pigments and Chemicals.
Business updates representing these segments were provided for DuPont
iTechnologies, DuPont Nonwovens, DuPont Performance Coatings and DuPont
"Corian", each of which is aggressively integrating science, knowledge
intensity and productivity to produce superior revenue and earnings growth.
- DuPont is pursuing a two-tract strategy for development of
e-commerce businesses and alliances. First the company is improving the
e-business platforms of existing businesses to extend its reach to customers
and markets. The second tract is creation of new "market maker" Internet
businesses serving the rapidly expanding business-to-business (B2B) markets.
DuPont's recent joint venture with Internet Capital Group, called CapSpan, an
Internet B2B development company is indicative of the company's e-commerce
commitment. CapSpan will be capitalized at about $100 million with DuPont
having two-thirds ownership.
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- Six Sigma is the cornerstone of DuPont's productivity initiatives.
The program is ahead of schedule with 750 trained experts and anticipated
project benefits in excess of $150 million annualized. In 2000, 20 percent of
the Six Sigma projects will be directly focused on revenue.
Information presented during today's briefing will be available at the
company website, http://www.dupont.com/corp/ir/index.html. Click on
"Presentations to Analysts."
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 97,000 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 develop-
ment, 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; research and development
of new products, including regulatory approval and market acceptance, and
seasonality of sales of agricultural products.
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[/TABLE]
YEAR 1999
---------
($ in billions)
[CAPTION]
Free
Revenue EBITDA<Fa> Cash Flow<FGb>
------- --------- ------------
[S] [C] [C] [C]
Agriculture & Nutrition )
) 3.1 0.3 0.3
Pioneer )
Nylon Enterprise 4.5 0.8 0.2
Performance Coatings & Polymers 6.1 1.2 0.5
Pharmaceuticals 1.6 0.5 0.1
Pigments & Chemicals 3.7 1.1 0.6
Polyester Enterprise 2.6 0.1 -
Specialty Fibers 3.5 1.3 0.6
Specialty Polymers 4.2 1.1 0.5
[FN]
- -----------------------
<Fa> Underlying earnings before interest and taxes adding back depreciation
and amortization.
<Fb> Underlying cash flow from operations less capital expenditures excluding
acquisitions.
[/TABLE]
==============================================================================
In the foregoing press release: Neither EBITDA nor Free Cash Flow
purport to represent income or cash flow as defined under generally accepted
accounting principles, and should not be considered an alternative to such
measures as an indicator of the Company's performance.
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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
February 23, 2000
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