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 26, 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
1
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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, No. 33-60069 and No. 333-86363), we hereby file
the following press release.
Exhibit
Number Description of Exhibit
------- -------------------------------------------------
99 Copy of the Registrant's Earnings Press Release,
dated July 26, 2000.
2
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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 26, 2000
3
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EXHIBIT INDEX
Exhibit
Number Description of Exhibit
------- -------------------------------------------------
99 Copy of the Registrant's Earnings Press Release,
dated July 26, 2000.
4
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EXHIBIT 99
July 26, 2000 Contact: Clif Webb
WILMINGTON, Del. 302-774-4005
[email protected]
DUPONT REPORTS SECOND QUARTER
2000 EARNINGS
-----------------------------
Summary
-------
o Second quarter underlying earnings per share of $.90 were up 15 percent
versus 1999.
o Underlying after-tax operating income (ATOI) of $1,169 million was up
16 percent despite a $170 million after-tax cost increase for raw
materials.
o Strong ATOI growth came from the Performance Coatings & Polymers, Specialty
Polymers and Pigments & Chemicals segments, and from increased ownership in
Pioneer Hi-Bred International.
o Sales of $7.9 billion increased 13 percent versus 1999 and were up in all
segments.
o Worldwide segment sales volume grew 6 percent, reflecting growth in all
regions.
o Average selling prices (ex-currency) were up 2 percent, the first
significant year-over-year increase since the first quarter of 1998.
o Nylon volumes remained at historically high levels but earnings were
impaired by significantly higher costs for raw materials.
o 2,500 Six Sigma projects are under way with potential annualized benefits
estimated at $450 million pretax.
Earnings Comparisons - Second Quarter
-------------------------------------
($ per share diluted)
Including
Underlying One-Time Items
-------------- --------------
2000 1999 2000 1999
---- ---- ---- ----
Continuing Operations $.90 $.78 $.65 $.74
Discontinued Operations - .06 - .06
Total $.90 $.84 $.65 $.80
5
<PAGE>
DuPont reported earnings from continuing operations, before one-time
items, of $.90 per share for the second quarter, 15 percent higher than the
$.78 per share earned in last year's second quarter, and $1.75 per share for
the first half 2000 versus $1.44 for the first half 1999, up 22 percent.
"DuPont delivered strong performance in the second quarter," said
Charles O. Holliday, Jr., DuPont chairman and chief executive officer. "Most
of our businesses performed exceptionally well in spite of higher raw material
costs and weak European currencies, with 11 of 18 strategic business units
(SBUs) delivering double-digit earnings growth. While slowing is now evident
in some sectors of the U.S. economy, most of our global markets remain robust.
Given price increases that are already in place, and productivity improvements
driven by Six Sigma, we are well-positioned to meet raw material cost and
currency challenges and remain optimistic that we will achieve the
17-20 percent EPS growth target we set for the company earlier this year.
Global Sales and Income Highlights
----------------------------------
Second quarter income from continuing operations before one-time items
was $949 million, compared to $886 million in the second quarter 1999, up
$63 million or 7 percent. Earnings on a per-share basis were up 15 percent,
reflecting 8 percent lower average shares outstanding this year. Higher sales
volume, higher local selling prices and benefits from increased ownership of
Pioneer more than offset the negative impact of higher raw material costs,
higher interest cost and a stronger U.S. dollar. Including one-time items,
income from continuing operations was $688 million versus $846 million last
6
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year, resulting in earnings per share of $.65 compared to $.74 last year.
One-time items, all of which were previously announced, are detailed in the
notes to the accompanying financial statements and are summarized below:
$MM Pretax $MM After-Tax ($ Per Share)
-------------- -------------- ---------------
2Q00 2Q99 2Q00 2Q99 2Q00 2Q99
------ ----- ------ ----- ------ ------
"Benlate" Accrual $(100) $ (62) $(.06)
Purchase Accounting -
Pioneer (220) (138) (.13)
Performance Coatings
Restructuring (98) (61) (.06)
Polyester Restructuring $(62) $(40) $(.04)
----- ---- ----- ---- ----- -----
Total (418) (62) (261) (40) (.25) (.04)
Second quarter 2000 consolidated sales were $7.9 billion, 13 percent
above second quarter 1999. Segment sales and transfers, which include a
pro rata share of affiliates' sales, were $8.8 billion, up 12 percent from
$7.9 billion last year. This increase is the result of 6 percent volume
growth, 6 percent added from the Pioneer acquisition, and 2 percent higher
local prices, partly offset by the currency effect from the stronger U.S.
dollar which reduced worldwide sales by 2 percent. Regional segment sales and
related variances are summarized below:
% Change Due To
----------------------------------------
2Q00 % Change Local Currency Portfolio
Segment Sales $B vs. 2Q99 Price Effect Volume Changes
-------------- ---- -------- ----- -------- ------ ---------
Worldwide 8.8 12 2 (2) 6 6
U.S. 4.7 14 1 0 4 9
Europe 2.0 (2) 0 (9) 6 1
Asia 1.2 26 3 3 18 2
Canada,
Mexico, S.A. 0.9 17 7 (3) 4 9
7
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o U.S. sales, excluding portfolio changes, were up 5 percent, reflecting
4 percent higher volume and 1 percent higher prices.
o Asia Pacific region volume growth rate remained very strong at 18 percent,
with local prices up 3 percent.
o European sales reflect 6 percent volume growth more than offset by the
impact of weaker European currencies which decreased sales in the quarter
by 9 percent.
o Portfolio changes, predominantly the Pioneer acquisition, were a
significant contributor to second quarter revenue growth, particularly in
the United States. Pioneer's selling season for 2000 is now essentially
complete.
Six Sigma
---------
Six Sigma implementation remains on track. At the end of the second
quarter we had over 1,000 trained Black Belts and 2,500 active projects. The
potential annualized pretax benefit from active projects at the end of the
second quarter was $450 million. The actual annualized pretax benefit of
completed projects at the end of the second quarter was $110 million. At the
end of the first quarter these annualized pretax benefits were $350 million
and $40 million, respectively.
Outlook
-------
The first half earnings performance positions the company to meet its
17-20 percent earnings per share growth target for the year 2000. Aggressive
pricing actions, Six Sigma productivity projects and cost controls have been
implemented to mitigate raw material cost increases. Looking at the second
half of the year, the company expects:
o raw material costs to remain at current high levels, which would
result in an estimated negative EPS impact of $.20-$.25 versus the
second half of 1999,
o more than half of the SBU's to have higher U.S. dollar selling prices
than second-half 1999 levels, and
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o volume growth to be somewhat below the 6 percent rate of the first
half.
Taking all of these factors into account, the company continues to believe
that it will achieve its full year 17-20 percent EPS growth target.
Business Segment Performance
----------------------------
Segment ATOI before one-time items was $1.2 billion, up 16 percent
from last year. Excluding Pioneer from both periods, segment earnings were up
8 percent. Results for individual segments are summarized below:
o Performance Coatings & Polymers - Segment earnings were up 19 percent,
reflecting continued strength in Engineering Polymers and Performance
Coatings. Phase II of the Herberts integration announced during the
quarter will result in the elimination of about 1,000 positions. The
resulting savings will be partly realized in 2000, with the majority of the
benefit in 2001, reaching an estimated annualized savings rate of
$100 million pretax upon completion during the second quarter 2001.
Engineering Polymers earnings growth continued with strong worldwide
volumes offsetting a negative currency impact, principally in Europe.
Several new polymer materials have been introduced to meet customer demand
for reduced costs and improved performance versus metal alternatives.
o Specialty Fibers - Segment earnings increased 4 percent based on 8 percent
higher volumes. Volumes were particularly strong in "Lycra" elastane,
"Kevlar" brand fiber, and "Tyvek" flexible sheet products. Segment
earnings were adversely affected by higher costs associated with capacity
increases and lower U.S. dollar prices, particularly "Lycra" in Europe.
Revenue growth was also impacted by new generic elastane capacity in Asia.
However, the "Lycra" strategy of penetrating the ready-to-wear market via
branding and new products remains on track. Advanced Fiber Systems
earnings were strong, reflecting significant growth in the Life Protection
and Protective Apparel markets.
o Specialty Polymers - Segment earnings were up 12 percent, reflecting
continued earnings growth from DuPont iTechnologies, Fluoropolymers, and
"Corian", businesses which had double-digit sales and earnings growth.
iTechnologies and Fluoropolymers both benefited from a strong electronics
market while "Corian" continues to drive market penetration via new
products. Earnings in the Packaging & Industrial Polymers business were
down modestly due to significantly higher raw material costs.
9
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o Pigments & Chemicals - Segment earnings were up 18 percent, reflecting
double-digit earnings growth in all three businesses: White Pigment &
Mineral Products (WPMP), Chemical Solutions and Fluorochemicals. WPMP
sales grew with strong demand in all regions and volumes at record levels.
Price increases announced for July will help to offset the negative impact
of the stronger dollar and higher raw material costs. DuPont Chemical
Solutions sales reflected substantial volume increases and Fluorochemicals
continues to benefit from increased sales of CFC alternative products.
o Nylon Enterprise - Volumes remained strong, close to last year's histori-
cally high levels. Segment earnings were 15 percent lower, reflecting
significantly higher raw material costs. A global price increase was
announced for DuPont Nylon Fibers and Intermediates effective August 1.
o Polyester Enterprise - Segment earnings improved to $11 million versus a
loss of $13 million last year, a $24 million turnaround. Earnings from the
specialty/branded fibers, resins & intermediates, and films sectors
improved from second quarter 1999. Fixed costs continue to decline as
benefits from restructuring and Six Sigma efforts are realized. The
manufacturing alliance with Unifi for polyester filament started in June
and is expected to improve product quality, yields, and costs.
o Agriculture & Nutrition - A modest earnings improvement in Crop Protection
Products, driven by higher volume and prices (ex-currency), was offset by
Nutrition & Health losses. Crop Protection Products sales increased in the
North American corn and soybean markets, which in part, benefited from the
TruChoiceSM integrated offering with Pioneer. Fixed costs were also lower
reflecting last year's restructuring of the business.
o Pioneer - Pioneer earnings increased $85 million, reflecting 100 percent
ownership in the current year versus 20 percent in the second quarter of
1999. Operating results reflect essentially flat corn volumes and higher
soybean volumes. Prices for both corn and soybeans were up. The higher
corn prices were due to an improvement in mix to new higher-priced products
and lower discounts compared to last year. The higher soybean prices were
due to a higher mix of "Roundup" Ready Soybeans. During the quarter the
company received a $100 million cash payment from Cargill in settlement of
patent infringement litigation, 80 percent of which was reflected in the
Pioneer purchase accounting resulting in a reduction of goodwill. The
remaining $20 million was largely offset by costs related to the
acquisition.
o Pharmaceuticals - Segment earnings and product sales were both up by
4 percent, led by SustivaTM efavirenz. "Coumadin" (warfarin sodium
tablets, USP) crystalline sales reflect continued generic competition.
Prescription market share decline has been held to roughly one-half share
point per month, which is a notable achievement given three generic
competitors. "Sinemet" (carbidopa-levodopa) sustained-release sales were
limited by product availability. As planned, investment in R&D was
10
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increased versus prior year. During the quarter DuPont Pharmaceuticals
received FDA approval for "Innohep", the first true one-a-day low molecular
weight heparin (LMWH) approved in the United States, and signed a letter of
intent with Emisphere to co-develop and market solid oral heparins. These
products are an excellent strategic fit with DuPont Pharmaceuticals cardio-
vascular franchise.
Major product sales are shown below:
($ in millions) 2Q 2000 2Q 1999 YR 1999
----------------------- ------- ------- -------
"Coumadin" 69 91 464
SustivaTM 141 58 211
"Sinemet Brand" 37 85 331
"Cardiolite"/MiralumaTM 62 50 210
Forward-Looking Statements: This news release contains forward-looking
statements 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 state-
ments may be identified by words like "expects," "anticipates," "plans,"
"intends," "projects," "indicates," and similar expressions. These state-
ments 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, regula-
tions, policies and economic conditions of countries in which the company does
business; competitive pressures; successful integration of structural changes,
including restructuring plans, acquisitions, divestitures and alliances;
research and development of new products, including regulatory approval and
market acceptance, seasonality of sales of agricultural products.
###
7/26/00
11
<PAGE>
<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) 2000 1999 2000 1999
-------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
SALES ....................................................... $7,914 $7,024 $15,507 $13,319
Other Income<Fa> ............................................ 218 235 566 253
------ ------ ------- -------
Total ..................................................... 8,132 7,259 16,073 13,572
------ ------ ------- -------
Cost of Goods Sold and Other Operating Charges<Fb> .......... 5,028 4,360 9,884 8,200
Selling, General and Administrative Expenses ................ 809 625 1,566 1,160
Depreciation ................................................ 353 373 704 708
Amortization of Goodwill and Other Intangible Assets<Fc> .... 109 51 216 84
Research and Development Expense ............................ 460 387 881 745
Interest Expense ............................................ 210 117 411 213
Purchased In-Process Research and Development<Fd> ........... - - (11) 40
Employee Separation Costs and Write-Down of Assets<Fe> ...... 98 62 98 62
------ ------ ------- -------
Total ..................................................... 7,067 5,975 13,749 11,212
------ ------ ------- -------
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES AND
MINORITY INTERESTS ........................................ 1,065 1,284 2,324 2,360
Provision for Income Taxes .................................. 355 418 794 850
Minority Interests in Earnings of Consolidated Subsidiaries . 22 20 39 36
------ ------ ------- -------
INCOME FROM CONTINUING OPERATIONS ........................... 688 846 1,491 1,474
DISCONTINUED OPERATIONS
Gain on Disposal of Discontinued Business,
Net of Income Taxes<Ff> ................................. - 71 - 106
------ ------ ------- -------
NET INCOME .................................................. $ 688 $ 917 $ 1,491 $ 1,580
====== ====== ======= =======
BASIC EARNINGS PER SHARE OF COMMON STOCK<Fg>
Continuing Operations ..................................... $ .66 $ .75 $ 1.42 $ 1.30
Discontinued Operations ................................... - .06 - .10
------ ------ ------- -------
Net Income ................................................ $ .66 $ .81 $ 1.42 $ 1.40
====== ====== ======= =======
DILUTED EARNINGS PER SHARE OF COMMON STOCK<Fg>
Continuing Operations ..................................... $ .65 $ .74 $ 1.41 $ 1.29
Discontinued Operations ................................... - .06 - .09
------ ------ ------- -------
Net Income ................................................ $ .65 $ .80 $ 1.41 $ 1.38
====== ====== ======= =======
DIVIDENDS PER SHARE OF COMMON STOCK ......................... $ .35 $ .35 $ .70 $ .70
====== ====== ======= =======
</TABLE>
12
<PAGE>
[FN]
FOOTNOTES TO CONSOLIDATED INCOME STATEMENT
------------------------------------------
<Fa> Year-to-date 2000 includes a $176 gain resulting from the sale by
Pioneer of certain equity securities classified as available for sale.
Year-to-date 1999 includes an exchange loss of $131 on forward exchange
contracts purchased in 1998 to lock in the U.S. dollar cost of the
acquisition of Herberts, the automotive coatings business of Hoechst AG.
The purchase price for Herberts was negotiated in German marks.
<Fb> In accordance with purchase accounting rules applied to the acquisition
of the remaining 80 percent ownership interest in Pioneer on October 1,
1999, Pioneer inventory was increased to fair value. This inventory
step-up generates noncash charges to cost of goods sold as the inventory
on hand at the acquisition date is sold. Second quarter and year-to-
date 2000 charges were $220 and $567, respectively.
During second quarter 2000, a charge of $100 was also recorded to
increase the Company's reserve for "Benlate" 50 DF fungicide litigation.
<Fc> 2000 includes amortization expense associated with acquisitions of
Herberts and Pioneer. Prior to October 1, 1999, the Company's 20
percent ownership in Pioneer was accounted for under the equity method
and results (including amortization expense) were reported as Other
Income. 1999 includes amortization expense associated with the Herberts
acquisition beginning in the second quarter.
<Fd> Year-to-date 2000 includes a credit of $11 that was recorded based on
revisions of preliminary purchase price allocations associated with the
October 1, 1999 purchase of the remaining 80 percent ownership interest
in Pioneer. Year-to-date 1999 includes an estimated charge of $40 that
was recorded in conjunction with the purchase of Herberts, based on
preliminary allocations of purchase price.
<Fe> Second quarter 2000 charges of $98 result from the continued restructur-
ing of the performance coatings businesses. This includes charges of
$73 attributable to employee separation costs for about 1,000 employees,
$13 for the shutdown of related manufacturing facilities, and $12 for
other exit costs.
Second quarter 1999 charges of $62 result from employee separation costs
for about 850 employees within the Polyester Enterprise.
<Ff> Includes operating results of the Company's former interest in Conoco.
<Fg> Earnings per share are calculated on the basis of the following average
number of common shares:
Three Months Ended Six Months Ended
June 30 June 30
----------------------------- -----------------------------
Basic Diluted Basic Diluted
------------- ------------- ------------- -------------
2000 1,045,857,572 1,053,658,428 1,046,447,044 1,055,367,888
1999 1,129,006,814 1,144,189,906 1,128,051,977 1,141,147,812
13
<PAGE>
<TABLE>
E. I. DU PONT DE NEMOURS AND COMPANY AND CONSOLIDATED SUBSIDIARIES
<CAPTION>
CONSOLIDATED SEGMENT INFORMATION - Three Months Ended Six Months Ended
CONTINUING OPERATIONS<Fa> June 30 June 30
-------------------------------------------------------------------------------------------------------------
(Dollars in millions) 2000 1999 2000 1999
-------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
SEGMENT SALES<Fb>
-------------
Agriculture & Nutrition ...................... $ 843 $ 827 $ 1,469 $ 1,547
Nylon Enterprise ............................. 1,172 1,149 2,295 2,252
Performance Coatings & Polymers .............. 1,716 1,656 3,369 2,806
Pharmaceuticals .............................. 394 380 783 789
Pigments & Chemicals ......................... 1,038 949 1,998 1,815
Pioneer ...................................... 803 265 1,724 325
Polyester Enterprise ......................... 676 643 1,265 1,267
Specialty Fibers ............................. 892 857 1,797 1,720
Specialty Polymers ........................... 1,151 1,057 2,242 2,046
Other ........................................ 147 122 272 237
------ ------ ------- -------
Total Segment Sales ........................ 8,832 7,905 17,214 14,804
Elimination of Intersegment Transfers ........ (177) (178) (336) (352)
Elimination of Equity Affiliate Sales ........ (741) (701) (1,373) (1,132)
Miscellaneous ................................ - (2) 2 (1)
------ ------ ------- -------
SALES ...................................... $7,914 $7,024 $15,507 $13,319
====== ====== ======= =======
AFTER-TAX OPERATING INCOME (LOSS)
---------------------------------
Agriculture & Nutrition ...................... $ 73<Fc> $ 146 $ 136<Fc> $ 244
Nylon Enterprise ............................. 88 104 175 206
Performance Coatings & Polymers .............. 129<Fd> 160 308<Fd> 260 <Fe>
Pharmaceuticals .............................. 51 49 105 124
Pigments & Chemicals ......................... 186 158 350 304
Pioneer ...................................... 6<Ff> 59 83<Ff> 52
Polyester Enterprise ......................... 11 (53)<Fg> 20 (59)<Fg>
Specialty Fibers ............................. 175 168 376 349
Specialty Polymers ........................... 183 164 348 328
Other ........................................ 6 13 7 23
------ ------ ------- -------
Total Segment ATOI ......................... 908 968 1,908 1,831
Interest & Exchange Gains and Losses ......... (136) (48) (259) (211)<Fh>
Corporate Expenses ........................... (84) (74) (158) (146)
------ ------ ------- -------
INCOME FROM CONTINUING OPERATIONS .......... $ 688 $ 846 $ 1,491 $ 1,474
====== ====== ======= =======
</TABLE>
14
<PAGE>
[FN]
NOTES TO CONSOLIDATED SEGMENT INFORMATION - CONTINUING OPERATIONS
-----------------------------------------------------------------
<Fa> Certain reclassifications of segment data have been made to reflect
changes in organizational structure.
<Fb> Includes pro rata equity affiliate sales and intersegment transfers.
<Fc> Includes a charge of $62 to increase the Company's reserve for "Benlate"
50 DF fungicide litigation.
<Fd> Includes a charge of $61 related to employee separation costs for about
1,000 employees, the shutdown of related manufacturing facilities, and
other exit costs.
<Fe> Includes an estimated charge of $40 based on preliminary purchase price
allocations in conjunction with the purchase of Herberts, the automotive
coatings business of Hoechst AG, related to the value assigned to
research and development in progress at the time of purchase for which
technological feasibility had not yet been established and no alterna-
tive future use was anticipated.
<Ff> Second quarter includes a noncash charge of $138 resulting from the sale
of acquired Pioneer inventories which, in accordance with purchase
accounting rules, were recorded at fair value on October 1, 1999.
Year-to-date includes noncash charges of $353 resulting from the sale of
acquired Pioneer inventories, partly offset by a $109 gain resulting
from the sale of certain equity securities classified as available for
sale, and a credit of $11 to reduce the preliminary purchase price
allocated to purchased in-process research and development.
<Fg> Includes a charge of $40 related to employee separation costs for about
850 employees within the Polyester Enterprise.
<Fh> Includes an exchange loss of $81 on forward exchange contracts purchased
in 1998 to lock in the U.S. dollar cost of the acquisition of Herberts.
The purchase price for Herberts was negotiated in German marks.
15
<PAGE>
<TABLE>
E. I. DU PONT DE NEMOURS AND COMPANY AND CONSOLIDATED SUBSIDIARIES
<CAPTION>
SEGMENT SALES<Fa>
(2ND QUARTER 2000 VS 2ND QUARTER 1999)
------------------------------------------------------------------------------------------------------------------
Segment Sales
Three Months Ended
June 30 Percentage Change Due to:
------------------ ----------------------------
U.S.$
$ Change Price Volume Other<Fb>
------ ------ ------ ------ --------
<S> <C> <C> <C> <C> <C>
Agriculture & Nutrition ................................... $ 843 2% (2)% 4%
Nylon Enterprise .......................................... 1,172 2 3 (1)
Performance Coatings & Polymers ........................... 1,716 4 (1) 5
Pharmaceuticals ........................................... 394 4 N/M N/M
Pigments & Chemicals ...................................... 1,038 9 0 9
Pioneer ................................................... 803 203 203%
Polyester Enterprise ...................................... 676 5 9 1 (5)
Specialty Fibers .......................................... 892 4 (4) 8
Specialty Polymers ........................................ 1,151 9 (3) 12
Other ..................................................... 147 21 0 21
<FN>
--------------
<Fa> Includes transfers and pro rata share of equity affiliate sales.
<Fb> Includes sales increase/(decrease) due to acquisitions and divestitures.
<CAPTION>
CONSOLIDATED SEGMENT INFORMATION
EXCLUDING IMPACT OF ONE-TIME ITEMS - Three Months Ended Six Months Ended
CONTINUING OPERATIONS June 30 June 30
-----------------------------------------------------------------------------------------------------------------
(Dollars in millions) 2000 1999 % Chg. 2000 1999 % Chg.
-----------------------------------------------------------------------------------------------------------------
AFTER-TAX OPERATING INCOME
--------------------------
<S> <C> <C> <C> <C> <C> <C>
Agriculture & Nutrition ................................... $ 135 $ 146 (8)% $ 198 $ 244 (19)%
Nylon Enterprise .......................................... 88 104 (15) 175 206 (15)
Performance Coatings & Polymers ........................... 190 160 19 369 300 23
Pharmaceuticals ........................................... 51 49 4 105 124 (15)
Pigments & Chemicals ...................................... 186 158 18 350 304 15
Pioneer ................................................... 144 59 N/M 316 52 N/M
Polyester Enterprise ...................................... 11 (13) N/M 20 (19) N/M
Specialty Fibers .......................................... 175 168 4 376 349 8
Specialty Polymers ........................................ 183 164 12 348 328 6
Other ..................................................... 6 13 (54) 7 23 (70)
------ ------ ------ ------
Total Segment ATOI ...................................... 1,169 1,008 16 2,264 1,911 18
Interest & Exchange Gains and Losses ...................... (136) (48) (259) (130)
Corporate Expenses ........................................ (84) (74) (158) (146)
------ ------ ------ ------
INCOME FROM CONTINUING OPERATIONS ....................... $ 949 $ 886 7% $1,847 $1,635 13%
====== ====== ====== ======
</TABLE>
16
<PAGE>
<TABLE>
FINANCIAL SUMMARY - CONTINUING OPERATIONS
-----------------------------------------
(Dollars in millions, except per share)
<CAPTION>
Three Months Ended Six Months Ended
June 30 June 30
-------------------------- --------------------------
2000 1999 % Chg. 2000 1999 % Chg.
------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C>
Selected Income Statement Data -
Excluding Impact of One-Time Items
----------------------------------
Sales .......................................... $7,914 $7,024 13% $15,507 $13,319 16%
Segment ATOI ................................... 1,169 1,008 16 2,264 1,911 18
EBIT ........................................... 1,672 1,443 16 3,275 2,770 18
EBITDA ......................................... 2,134 1,867 14 4,195 3,562 18
Income From Continuing Operations .............. 949 886 7 1,847 1,635 13
EPS - Diluted .................................. 0.90 0.78 15 1.75 1.44 22
<CAPTION>
2nd Quarter 2000 Vs.
2nd Quarter 1999
--------------------
<S> <C>
Segment ATOI Variance Analysis -
Excluding Impact of One-Time Items
----------------------------------
Prices ......................................... $ 91
Volume ......................................... 156
Costs .......................................... (175)
Other .......................................... 12
Currency ....................................... (42)
Portfolio Change ............................... 119
-----
Total ........................................ $ 161
=====
</TABLE>
17
