E I DU PONT DE NEMOURS AND CO 
By WILMINGTON, Del., Jan. 26 /PRNewswire-FirstCall/ --
Highlights:
-- DuPont's fourth-quarter 2009 earnings were $.48 per share, compared to a
fourth-quarter 2008 loss of $.70 per share. Excluding significant
items, fourth-quarter 2009 earnings were $.44 per share versus a $.28
per share loss in the prior year (see Schedule B.)
-- Sales of $6.4 billion were up 10 percent versus prior year, led by sales
growth greater than 20 percent for titanium dioxide, electronic
materials, performance polymers and seed products.
-- Volume grew 10 percent, with increases in all regions. Asia Pacific
sales exceeded pre-recession levels with volume up 34 percent versus
prior year, reflecting very strong demand in China, Japan, Korea and
India.
-- Raw material, energy and freight costs for the fourth-quarter were about
20 percent lower after adjusting for currency and volume.
-- The company exceeded its full-year goal to deliver $1 billion of fixed
cost reductions and productivity actions.
-- Full-year 2009 earnings were $1.92 per share versus $2.20 in 2008.
Excluding significant items, 2009 earnings were $2.03 per share versus
$2.78 in the prior year.
-- Full-year free cash flow of $3.4 billion achieved the company's goal,
reflecting capital productivity and favorable currency impact.
-- DuPont increased its full-year 2010 earnings guidance to a range of
$2.15 to $2.45 per share. The previous guidance was $2.10 to $2.40 per
share.
"Across the organization, DuPont delivered on its commitments in 2009," said DuPont (NYSE: DD) Chair and CEO Ellen Kullman. "We intend to emerge stronger in 2010 by building on the work we accomplished last year, with a focus on sales growth through market-driven innovation and operating leverage. We remain committed to compound annual growth targets of 10 percent for top-line and 20 percent for earnings through 2012."
Global Consolidated Sales and Net Income
Fourth-quarter 2009 consolidated net sales of $6.4 billion were 10 percent higher than prior year, reflecting 10 percent higher volume, 3 percent lower local prices, a 4 percent positive impact from currency exchange rates and a 1 percent reduction from portfolio changes. The table below shows regional sales and variances versus fourth-quarter 2008.
Local
(dollars in % Currency Currency Portfolio/
billions) $ Change Price Effect Volume Other
--- ------ -------- -------- ------ ----------
U.S. $1.9 (2) (5) - 4 (1)
EMEA* 1.8 6 (1) 6 1 -
Asia Pacific 1.6 36 (3) 5 34 -
Canada & Lat.
America 1.1 12 (5) 8 9 -
Total
Consolidated
Sales $6.4 10 (3) 4 10 (1)
* Europe,
Middle East &
Africa
Net income attributable to DuPont for the fourth-quarter 2009 was $441 million versus a $629 million loss in the prior year. Net income excluding significant items was $402 million versus a $249 million loss in the prior year. The improvement reflects significantly higher sales volume, lower variable cost and currency benefit.
Earnings Per Share
The table below shows year-over-year earnings per share (EPS) variances for the fourth-quarter.
EPS ANALYSIS
-------------
4Q
---
EPS - 2008 $(.70)
Less: Significant items (Schedule B) (.42)
----
EPS -2008 Excluding significant items $(.28)
Local prices (.15)
Variable costs* .51
Volume .30
Fixed costs * (.08)
Currency .04
Tax --
Exchange Gain/Loss .06
Other** .04
---
EPS - 2009 Excluding significant items $.44
Significant Items (see Schedule B) .04
---
EPS - 2009 $.48
---------- ----
*Excluding volume and currency impacts.
---------------------------------------
**Primarily higher equity affiliate income partly offset by a $.05
charge in Pharmaceuticals relating to the timing of rebates and
other sales deductions.
------------------------------------------------------------------
Business Segment Performance
The table below shows fourth-quarter 2009 segment sales and related variances versus prior year.
Three Months
SEGMENT SALES* Ended Percentage Change
(Dollars in billions) December 31, 2009 Due to:
----------------- ------------------------------
Portfolio
% USD and
$ Change Price Volume Other
--- ------- ----- ------ ----------
Agriculture &
Nutrition $1.4 12 3 9 -
Electronics &
Communications 0.6 22 9 13 -
Performance
Chemicals 1.3 9 (8) 17 -
Performance Coatings 1.0 8 10 (2) -
Performance
Materials 1.4 20 (3) 24 (1)
Safety & Protection 0.8 (9) - (9) -
* Segment Sales include transfers.
Reported pre-tax operating income (PTOI) for fourth-quarter 2009 was $798 million compared to a fourth-quarter 2008 pre-tax operating loss of $595 million. Segment PTOI (loss) excluding significant items is shown below.
PRE-TAX OPERATING INCOME (LOSS) EXCLUDING SIGNIFICANT ITEMS*
Three Months Ended
December 31
-----------
$change
(Dollars in millions) 2009 2008 vs. 2008
---- ---- --------
Agriculture & Nutrition $(97) $(164) $67
Electronics & Communications 61 29 32
Performance Chemicals 208 14 194
Performance Coatings 70 (81) 151
Performance Materials 174 (129) 303
Safety & Protection 135 87 48
Pharmaceuticals 247 ** 265 (18)
Other (55) (81) 26
--- ---
Total Segments $743 $(60) $803
* See Schedules B and C for a listing of significant items and their impact by segment.
** Includes a $63 million charge in other income relating to the timing of rebates and other sales deductions.
The following is a summary of business results for each of the company's reportable segments, comparing the fourth-quarter 2009 with fourth-quarter 2008, for sales and PTOI, excluding significant items. All references to selling price changes are on a U.S. dollar basis, including the impact of currency.
Agriculture & Nutrition
Segment sales of $1.4 billion were up $143 million or 12 percent. Volume increased 9 percent, with increases in all regions. Selling prices were up 3 percent. Segment volumes reflect 25 percent higher seed volume, with a strong start to the North America and European seasons, and successful summer plantings in Argentina, Brazil, and South Africa. Seed sales were $465 million. Crop protection product volumes increased 5 percent, reflecting increased insecticide demand in Latin America. Food and nutrition products sales were up slightly, reflecting increased sales in North America. Segment PTOI seasonal loss of $97 million, improved $67 million, principally due to higher seed volumes.
Electronics & Communications
Segment sales of $582 million were up 22 percent versus fourth-quarter 2008 and 2 percent above pre-recession fourth-quarter 2007. Sales reflect 13 percent higher volumes and 9 percent higher prices (includes metals pass-through pricing) versus fourth-quarter 2008. Seasonal demand, growth in photovoltaics and a small amount of inventory rebuilding throughout the industry contributed to a strong quarter. PTOI of $61 million was up $32 million primarily due to significantly improved volume and mix.
Performance Chemicals
Segment sales of $1.3 billion increased $113 million, or 9 percent. The sales increase was led by 17 percent higher volumes, partly offset by lower prices. Volume increases primarily driven by recovery in the titanium dioxide market in all regions. Pricing decreases mostly reflected the pass-through of lower chemicals raw material costs. PTOI was $208 million, an improvement of $194 million. The increase primarily reflected lower raw material costs and higher volume.
Performance Coatings
Segment sales of $975 million increased $70 million, or 8 percent, principally reflecting higher selling prices. Volumes were 2 percent lower, reflecting continued industrial market weakness in developed regions, partly offset by higher demand in automotive OEM markets. PTOI was $70 million, up $151 million, reflecting lower raw material costs and aggressive fixed cost reductions.
Performance Materials
Segment sales of $1.4 billion increased $242 million, or 20 percent, principally reflecting 24 percent higher volumes led by improvement in automotive, industrial, consumer and electrical markets, with strong volume recovery in all regions, particularly Asia Pacific. Segment PTOI for the quarter was $174 million, an improvement of $303 million, reflecting strong volume and variable margin expansion as lower selling prices were more than offset by the benefits of sharply lower raw material costs.
Safety & Protection
Segment sales of $759 million decreased $75 million, or 9 percent, essentially all volume driven. Sales into automotive and consumer markets rebounded, while industrial and law enforcement markets continued to lag. PTOI was $135 million, an improvement of $48 million. The increase primarily reflected lower raw material costs and fixed cost reductions, partly offset by lower volume.
Additional segment information is available on the DuPont Investor Center website at www.dupont.com.
Outlook
DuPont remains committed to its 20 percent compound annual earnings growth goal for the 2009-2012 time period and 2010 free cash flow target of greater than $1.5 billion as announced November 2009. DuPont today increased its full-year 2010 earnings guidance to a range of $2.15 to $2.45 per share versus the previous guidance of $2.10 to $2.40 per share. Due to strong pension fund performance, the company now expects pension expense to be about $.10 per share, lower than originally anticipated. In addition, the company is estimating a first-quarter $.05 per share exchange loss resulting from devaluation of the Venezuelan currency.
"In 2010, we will continue the momentum generated from last year's aggressive cost-cutting and cash-generating actions," Kullman said. "We remain confident in our performance outlook for 2010, based on improving economic conditions coupled with well-positioned and streamlined businesses. Each one of our business units has clear targets, our leaders understand their accountability and our teams are poised to deliver in 2010."
Use of Non-GAAP Measures
Management believes that certain non-GAAP measurements, such as free cash flow, are meaningful to investors because they provide insight with respect to ongoing operating results of the company. Such measurements are not recognized in accordance with generally accepted accounting principles (GAAP) and should not be viewed as an alternative to GAAP measures of performance. Reconciliations of non-GAAP measures to GAAP are provided in schedules C and D.
DuPont is a science-based products and services company. Founded in 1802, DuPont puts science to work by creating sustainable solutions essential to a better, safer, healthier life for people everywhere. Operating in more than 70 countries, DuPont offers a wide range of innovative products and services for markets including agriculture and food; building and construction; communications; and transportation.
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 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 documents filed with the Securities and Exchange Commission by DuPont, particularly its latest annual report on Form 10-K and quarterly report on Form 10-Q, 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, including inflation, interest and foreign currency exchange rates, of countries in which the company does business; competitive pressures; successful integration of structural changes, including restructuring plans, acquisitions, divestitures and alliances; cost of raw materials, research and development of new products, including regulatory approval and market acceptance; seasonality of sales of agricultural products; and severe weather events that cause business interruptions, including plant and power outages, or disruptions in supplier and customer operations. The company undertakes no duty to update any forward-looking statements as a result of future developments or new information.
E. I. du Pont de Nemours and Company
Consolidated Income Statements
(Dollars in millions, except per share amounts)
SCHEDULE A
Three Months Ended
December 31,
------------
2009 2008
---- ----
Net sales $6,419 $5,820
Other income, net 395 250
--- ---
Total 6,814 6,070
Cost of goods sold and other operating
charges (a) 4,956 5,250
Selling, general and administrative
expenses 856 799
Research and development expense 389 343
Interest expense 96 104
Employee separation /asset related
charges, net (a) (55) 535
--- ---
Total 6,242 7,031
Income (loss) before income taxes 572 (961)
Provision for (benefit from) income taxes 127 (325)
--- ----
Net income (loss) 445 (636)
Less: Net income (loss) attributable to
noncontrolling interests 4 (7)
--- ---
Net income (loss) attributable to DuPont $441 $(629)
==== =====
Basic earnings (loss) per share of common
stock $0.48 $(0.70)
===== ======
Diluted earnings (loss) per share of
common stock $0.48 $(0.70)
===== ======
Dividends per share of common stock $0.41 $0.41
===== =====
Average number of shares outstanding used in
earnings per share (EPS) calculation:
Basic 904,526,000 903,265,000
Diluted 910,854,000 903,265,000
Year Ended
December 31,
------------
2009 2008
---- ----
Net sales $26,109 $30,529
Other income, net 1,219 1,307
----- -----
Total 27,328 31,836
Cost of goods sold and other operating
charges (a) 19,708 23,548
Selling, general and administrative
expenses 3,440 3,593
Research and development expense 1,378 1,393
Interest expense 408 376
Employee separation /asset related
charges, net (a) 210 535
--- ---
Total 25,144 29,445
Income (loss) before income taxes 2,184 2,391
Provision for (benefit from) income taxes 415 381
--- ---
Net income (loss) 1,769 2,010
Less: Net income (loss) attributable to
noncontrolling interests 14 3
--- ---
Net income (loss) attributable to DuPont $1,755 $2,007
====== ======
Basic earnings (loss) per share of common
stock $1.93 $2.21
===== =====
Diluted earnings (loss) per share of
common stock $1.92 $2.20
===== =====
Dividends per share of common stock $1.64 $1.64
===== =====
Average number of shares outstanding used in
earnings per share (EPS) calculation:
Basic 904,395,000 902,415,000
Diluted 908,712,000 907,371,000
(a) See Schedule B for detail of significant items.
E. I. du Pont de Nemours and Company
Condensed Consolidated Balance Sheets
(Dollars in millions, except per share amounts)
SCHEDULE A (continued)
December December
31, 2009 31, 2008
--------- ---------
Assets
Current assets
Cash and cash equivalents $4,021 $3,645
Marketable securities 2,116 59
Accounts and notes receivable, net 5,030 5,140
Inventories 5,380 5,681
Prepaid expenses 129 143
Income taxes 612 643
--- ---
Total current assets 17,288 15,311
Property, plant and equipment, net of
accumulated depreciation 11,094 11,154
(December 31, 2009 -$17,821; December 31,
2008 -$16,800)
Goodwill 2,137 2,135
Other intangible assets 2,552 2,710
Investment in affiliates 1,014 844
Other assets 4,100 4,055
----- -----
Total $38,185 $36,209
======= =======
Liabilities and Stockholders' Equity
Current liabilities
Accounts payable $3,542 $3,128
Short-term borrowings and capital lease
obligations 1,506 2,012
Income taxes 154 110
Other accrued liabilities 4,188 4,460
----- -----
Total current liabilities 9,390 9,710
Long-term borrowings and capital lease
obligations 9,528 7,638
Other liabilities 11,490 11,169
Deferred income taxes 126 140
--- ---
Total liabilities 30,534 28,657
------ ------
Commitments and contingent liabilities
Stockholders' equity
Preferred stock 237 237
Common stock, $0.30 par value; 1,800,000,000
shares authorized; 297 297
issued at December 31, 2009 -990,855,000;
December 31, 2008 -989,415,000
Additional paid-in capital 8,469 8,380
Reinvested earnings 10,710 10,456
Accumulated other comprehensive loss (5,771) (5,518)
Common stock held in treasury, at cost
(87,041,000 shares (6,727) (6,727)
at December 31, 2009 and 2008) ------ ------
Total DuPont stockholders' equity 7,215 7,125
----- -----
Noncontrolling interests 436 427
--- ---
Total equity 7,651 7,552
----- -----
Total $38,185 $36,209
======= =======
E. I. du Pont de Nemours and Company
Condensed Consolidated Statements of Cash Flows
(Dollars in millions)
SCHEDULE A (continued)
Year Ended
December 31,
------------
2009 2008
---- ----
Cash provided by operating activities $4,741 $3,129
------ ------
Investing activities
Purchases of property, plant and equipment (1,308) (1,978)
Investments in affiliates (124) (55)
Payments for businesses (net of cash acquired) (13) (144)
Net decrease (increase) in short-term financial
instruments (2,016) 40
Other investing activities - net (837) 527
---- ---
Cash used for investing activities (4,298) (1,610)
Financing activities
Dividends paid to stockholders (1,492) (1,496)
Net (decrease) increase in borrowings 1,391 2,089
Other financing activities - net 4 285
--- ---
Cash (used for) provided by financing activities (97) 878
Effect of exchange rate changes on cash 30 (57)
--- ---
Increase in cash and cash equivalents 376 2,340
Cash and cash equivalents at beginning of period 3,645 1,305
----- -----
Cash and cash equivalents at end of period $4,021 $3,645
====== ======
E. I. du Pont de Nemours and Company
Schedules of Significant Items
(Dollars in millions, except per share amounts)
SCHEDULE B
SIGNIFICANT ITEMS
Pre-tax After-tax
------- ---------
2009 2008 2009 2008
---- ---- ---- ----
1st Quarter - Total $- $- $- $-
------------------- === === === ===
2nd Quarter
-----------
2009 Restructuring charge (a) $(340) $- $(227) $-
2008 Restructuring adjustment
(b) 75 - 53 -
Hurricane proceeds and
adjustments (c ) 50 - 33 -
--- --- --- ---
2nd Quarter - Total $(215) $- $(141) $-
===== === ===== ===
3rd Quarter
-----------
Hurricane charges (d) $- $(227) $- $(146)
--- ----- --- -----
3rd Quarter - Total $- $(227) $- $(146)
=== ===== === =====
4th Quarter
-----------
2008 and 2009 Restructuring
adjustments (b) $55 $- $39 $-
2008 Restructuring charges (e) - (535) - (380)
--- ---- --- ----
4th Quarter - Total $55 $(535) $39 $(380)
=== ===== === =====
Full Year - Total $(160) $(762) $(102) $(526)
===== ===== ===== =====
SIGNIFICANT ITEMS
($ Per Share)
-------------
2009 2008
---- ----
1st Quarter - Total $- $-
------------------- === ===
2nd Quarter
-----------
2009 Restructuring charge (a) $(0.25) $-
2008 Restructuring adjustment
(b) 0.06 -
Hurricane proceeds and
adjustments (c ) 0.04 -
---- ---
2nd Quarter - Total $(0.15) $-
====== ===
3rd Quarter
-----------
Hurricane charges (d) $- $(0.16)
--- ------
3rd Quarter - Total $- $(0.16)
=== ======
4th Quarter
-----------
2008 and 2009 Restructuring
adjustments (b) $0.04 $-
2008 Restructuring charges (e) - (0.42)
--- -----
4th Quarter - Total $0.04 $(0.42)
===== ======
Full Year - Total $(0.11) $(0.58)
====== ======
(a) Second quarter and full year 2009 included a $(340)
restructuring charge recorded in Employee separation /asset related
charges, net related to severance and related benefit costs, asset
related charges, and other non-personnel costs. Pre-tax amounts
by segment were: Electronics & Communications - $(43); Performance
Chemicals - $(66); Performance Coatings - $(65); Performance
Materials - $(110); Safety & Protection - $(55); and Other -
$(1).
(b) Second quarter and fourth quarter 2009 included a net reduction
of $75 and $55, respectively for estimated costs recorded in
Employee separation /asset related charges, net related to the 2008
and 2009 restructuring programs primarily due to the achievement of
work force reductions through non-severance programs. Total full
year pre-tax amounts by segment were: Agriculture & Nutrition -
$1; Electronics and Communications - $6; Performance Chemicals -
$12; Performance Coatings - $50; Performance Materials - $52;
Safety & Protection - $10; and Other - $(1).
(c) Second quarter and full year 2009 included a $50 benefit in Cost
of goods sold and other operating charges resulting from a reduction
of $26 from lower than estimated inventory and permanent investment
write-offs and $24 in insurance recoveries relating to the damage
from Hurricane Ike in 2008. Total pre-tax amount relates to the
Performance Materials segment.
(d) Third quarter and full year 2008 included a pre-tax charge of
$(227) for costs associated with clean up, restoration of
manufacturing operations, and lost inventory resulting from
hurricanes damages. Pre-tax hurricane charges by segment were:
Agriculture & Nutrition - $(4); Performance Chemicals - $(6);
Performance Materials - $(216); and Safety & Protection - $(1).
(e) Fourth quarter and full year 2008 includes a $(535)
restructuring charge in Employee separation /asset related charges,
net comprised of severance and related benefit costs, asset write-
offs, impairment charges, and other non-personnel costs. Pre-tax
amounts by segment were: Agriculture & Nutrition - $(18);
Electronics & Communications - $(37); Performance Chemicals -
$(50); Performance Coatings - $(209); Performance Materials -
$(94); Safety & Protection - $(96); and Other - $(31).
See Schedule C for detail by segment.
E. I. du Pont de Nemours and Company
Consolidated Segment Information
(Dollars in millions)
SCHEDULE C
Three Months
Ended Year Ended
December 31, December 31,
------------ ------------
SEGMENT SALES (1) 2009 2008 2009 2008
---------------- ---- ---- ---- ----
Agriculture & Nutrition $1,368 $1,225 $8,287 $7,952
Electronics & Communications 582 477 1,918 2,194
Performance Chemicals 1,320 1,207 4,964 6,035
Performance Coatings 975 905 3,429 4,361
Performance Materials 1,436 1,194 4,768 6,425
Safety & Protection 759 834 2,811 3,733
Other 45 31 158 160
Total Segment sales $6,485 $5,873 $26,335 $30,860
Elimination of transfers (66) (53) (226) (331)
--- --- ---- ----
Consolidated net sales $6,419 $5,820 $26,109 $30,529
====== ====== ====== ======
(1) Sales for the reporting segments include transfers.
E. I. du Pont de Nemours and Company
Consolidated Segment Information
(Dollars in millions)
SCHEDULE C (continued)
Three
Months
Ended Year Ended
December 31, December 31,
------------ ------------
PRE-TAX OPERATING INCOME/(LOSS) (PTOI) 2009 2008 2009 2008
-------------------------------------- ---- ---- ---- ----
Agriculture & Nutrition $(95) $(182) $1,224 $1,087
Electronics & Communications 67 (8) 87 251
Performance Chemicals 217 (36) 547 687
Performance Coatings 78 (290) 69 (8)
Performance Materials 198 (223) 287 128
Safety & Protection 144 (9) 260 661
Pharmaceuticals 247 265 1,037 1,025
Other (58) (112) (171) (181)
--- ---- ---- ----
Total Segment PTOI $798 $(595) $3,340 $3,650
Net exchange gains (losses) (1) (3) (116) (205) (255)
Corporate expenses & net interest (223) (250) (951) (1,004)
---- ---- ---- ------
Income (loss) before income taxes $572 $(961) $2,184 $2,391
==== ===== ====== ======
Three
Months
Ended Year Ended
December 31, December 31,
------------ ------------
SIGNIFICANT ITEMS BY SEGMENT (PRE-TAX)
(2) 2009 2008 2009 2008
--------------------------------------- ---- ---- ---- ----
Agriculture & Nutrition $2 $(18) $1 $(22)
Electronics & Communications 6 (37) (37) (37)
Performance Chemicals 9 (50) (54) (56)
Performance Coatings 8 (209) (15) (209)
Performance Materials 24 (94) (8) (310)
Safety & Protection 9 (96) (45) (97)
Pharmaceuticals - - - -
Other (3) (31) (2) (31)
-- --- -- ---
Total significant items by segment $55 $(535) $(160) $(762)
=== ===== ===== =====
Three
Months
Ended Year Ended
December 31, December 31,
------------ ------------
PTOI EXCLUDING SIGNIFICANT ITEMS 2009 2008 2009 2008
-------------------------------- ---- ---- ---- ----
Agriculture & Nutrition $(97) $(164) $1,223 $1,109
Electronics & Communications 61 29 124 288
Performance Chemicals 208 14 601 743
Performance Coatings 70 (81) 84 201
Performance Materials 174 (129) 295 438
Safety & Protection 135 87 305 758
Pharmaceuticals 247 265 1,037 1,025
Other (55) (81) (169) (150)
--- --- ---- ----
Total Segment PTOI excluding
significant items $743 $(60) $3,500 $4,412
==== ==== ====== ======
(1) Gains and losses resulting from the company's hedging program are
largely offset by associated tax effects.
See Schedule D for additional information.
(2) See Schedule B for detail of significant items.
E. I. du Pont de Nemours and Company
Reconciliation of Non-GAAP Measures
(Dollars in millions, except per share amounts)
SCHEDULE D
Summary of Earnings Comparisons
Three Months Ended
December 31,
------------
2009 2008 %
---- ---- Change
------
Segment
PTOI $798 $(595) n/m
Significant items charge
(benefit) included in PTOI (per
Schedule B) (55) 535
--- ---
Segment PTOI excluding
significant items $743 $(60) n/m
==== ====
Net income (loss)
attributable to
DuPont $441 $(629) n/m
Significant items charge
(benefit) included in net income
(loss)
attributable to DuPont (per
Schedule B) (39) 380
Net income (loss) attributable to
DuPont
excluding significant items $402 $(249) n/m
==== =====
EPS $0.48 $(0.70) n/m
Significant items charge
(benefit) included in EPS (per
Schedule B) (0.04) 0.42
----- ----
EPS excluding significant items $0.44 $(0.28) n/m
===== ======
Average number of diluted
shares outstanding 910,854,000 903,265,000 0.8%
Year Ended
December 31,
------------
2009 2008 %
---- ---- Change
------
Segment
PTOI $3,340 $3,650 -8%
Significant items charge (benefit)
included in PTOI (per Schedule B) 160 762
--- ---
Segment PTOI excluding significant
items $3,500 $4,412 -21%
====== ======
Net income (loss)
attributable to
DuPont $1,755 $2,007 -13%
Significant items charge (benefit)
included in net income (loss)
attributable to DuPont (per
Schedule B) 102 526
Net income (loss) attributable to
DuPont
excluding significant items $1,857 $2,533 -27%
====== ======
EPS $1.92 $2.20 -13%
Significant items charge (benefit)
included in EPS (per Schedule B) 0.11 0.58
---- ----
EPS excluding significant items $2.03 $2.78 -27%
===== =====
Average number of diluted shares
outstanding 908,712,000 907,371,000 0.1%
Reconciliation of Earnings Per Share (EPS)
Year Ended
December 31,
------------
2009 2008
Actual Actual
-------- --------
Earnings per share -excluding
significant items $2.03 $2.78
Significant items included in EPS(1):
2009 Restructuring charge (0.25) -
2009 Restructuring credit 0.02 -
2008 Restructuring credit (charge) 0.08 (0.42)
Hurricane proceeds and adjustments 0.04 -
Hurricane charge - (0.16)
--- -----
Net charge for significant items (0.11) (0.58)
----- -----
Reported EPS $1.92 $2.20
===== =====
(1) See Schedule B for detail of significant items.
Calculation of Free Cash Flow
Year Ended
December 31,
------------
2009 2008
---- ----
Cash provided by operating activities $4,741 $3,129
Less: Purchases of property, plant
and equipment 1,308 1,978
----- -----
Free cash flow $3,433 $1,151
====== ======
E. I. du Pont de Nemours and Company
Reconciliation of Non-GAAP Measures
(Dollars in millions, except per share amounts)
SCHEDULE D (continued)
Reconciliations of Adjusted EBIT / EBITDA to
Consolidated Income Statements
Three Months
Ended Year Ended
December 31, December 31,
------------ ------------
2009 2008 2009 2008
---- ---- ---- ----
Income (loss) before income taxes $572 $(961) $2,184 $2,391
Less: Net income (loss)
attributable to noncontrolling
interests 4 (7) 14 3
Add: Interest expense 96 104 408 376
-- --- --- ---
Adjusted EBIT 664 (850) 2,578 2,764
Add: Depreciation and amortization 346 348 1,503 1,444
--- --- ----- -----
Adjusted EBITDA $1,010 $(502) $4,081 $4,208
====== ===== ====== ======
Reconciliations of Fixed Costs as a
Percent of Sales
Three Months
Ended Year Ended
December 31, December 31,
------------ ------------
2009 2008 2009 2008
---- ---- ---- ----
Total charges and expenses -
consolidated income statements $6,242 $7,031 $25,144 $29,445
Remove:
Interest expense (96) (104) (408) (376)
Variable costs (1) (2,979) (3,245) (12,507) (15,736)
Significant items (2) 55 (535) (160) (762)
-- ---- ---- ----
Fixed costs $3,222 $3,147 $12,069 $12,571
====== ====== ======= =======
Consolidated net sales $6,419 $5,820 $26,109 $30,529
Fixed costs as a percent of
consolidated net sales 50.2% 54.1% 46.2% 41.2%
(1) Includes variable manufacturing costs, freight, commissions and
other selling expenses which vary with the volume of sales.
(2) See Schedule B for detail of significant items.
E. I. du Pont de Nemours and Company
Reconciliation of Non-GAAP Measures
(Dollars in millions, except per share amounts)
SCHEDULE D (continued)
Exchange Gains/Losses
The company routinely uses forward exchange contracts to offset its net
exposures, by currency, related to the foreign currency denominated
monetary assets and liabilities of its operations. The objective of this
program is to maintain an approximately balanced position in foreign
currencies in order to minimize, on an after-tax basis, the effects of
exchange rate changes. The net pre-tax exchange gains and losses are
recorded in Other income, net on the Consolidated Income Statements and
are largely offset by the associated tax impact.
Three
Months
Ended
December Year Ended
31, December 31,
--------- ------------
2009 2008 2009 2008
---- ---- ---- ----
Subsidiary/Affiliate Monetary Position Gain/(Loss)
--------------------------------------------------
Pre-tax exchange gains (losses)
(includes equity affiliates) $(8) $(286) $280 $(396)
Local tax benefits (expenses) (24) 93 (75) 130
--- -- --- ---
Net after-tax impact from subsidiary
exchange gains (losses) $(32) $(193) $205 $(266)
==== ===== ==== =====
Hedging Program Gain/(Loss)
---------------------------
Pre-tax exchange gains (losses) $5 $170 $(485) $141
Tax benefits (expenses) (2) (58) 166 (47)
-- --- --- ---
Net after-tax impact from hedging
program exchange gains (losses) $3 $112 $(319) $94
== ==== ===== ===
Total Exchange Gain/(Loss)
--------------------------
Pretax exchange gains (losses) $(3) $(116) $(205) $(255)
Tax benefits (expenses) (26) 35 91 83
--- -- -- --
Net after-tax exchange gains (losses) $(29) $(81) $(114) $(172)
==== ==== ===== =====
As shown above, the "Total Exchange Gain/(Loss)" is the sum of the
"Subsidiary/Affiliate Monetary Position Gain/(Loss)" and the "Hedging
Program Gain/(Loss)."
Reconciliation of Base Income Tax Rate to Effective
Income Tax Rate
Base income tax rate is defined as the effective income tax rate less
the effect of exchange gains/losses, as defined above, and
significant items.
Three
Months
Ended
December Year Ended
31, December 31,
--------- ------------
2009 2008 2009 2008
---- ---- ---- ----
Income (loss) before income taxes $572 $(961) $2,184 $2,391
Add: Significant items (1) (55) 535 160 762
Less: Net exchange gains (losses) (3) (116) (205) (255)
-- ---- ---- ----
Income (loss) before income taxes,
significant items and exchange gains/
losses $520 $(310) $2,549 $3,408
==== ===== ====== ======
Provision for (benefit from) income
taxes $127 $(325) $415 $381
Add: Tax benefit (expense) on
significant items (16) 150 58 231
Tax benefits (expenses) on exchange
gains/losses (26) 35 91 83
--- -- -- --
Provision for (benefit from) income
taxes, excluding taxes on significant
items
and exchange gains/losses $85 $(140) $564 $695
=== ===== ==== ====
Effective income tax rate 22.2% 33.8% 19.0% 15.9%
Significant items effect (0.7%) 7.3% 1.2% 3.5%
---- --- --- ---
Tax rate before significant items 21.5% 41.1% 20.2% 19.4%
Exchange gains (losses) effect (5.2%) 4.1% 1.9% 1.0%
---- --- --- ---
Base income tax rate 16.3% 45.2% 22.1% 20.4%
==== ==== ==== ====
(1) See Schedule B for detail of significant items.
SOURCE DuPont
