DuPont Reports 1Q Operating EPS of $1.34 - Announces 4 percent increase in 2Q 2015 dividend
WILMINGTON, Del., April 21, 2015 – DuPont (NYSE: DD), a science company that brings world-class, innovative products, materials, and services to the global marketplace, today announced first quarter 2015 operating earnings of $1.34 per share, which includes a $0.25 per share negative currency impact, compared to $1.58 per share in the prior year. GAAP1 earnings were $1.0 billion, or $1.13 per share, compared to $1.4 billion, or $1.54 per share, in the prior year.
DuPont also announced that its board of directors approved a second quarter dividend of 49 cents per share, a 4 percent increase over the 47 cents paid last quarter. This is the fourth increase since the beginning of 2012. The second quarter dividend of 49 cents per share of common stock is payable on June 12, 2015 to stockholders of record at the close of business on May 15, 2015.
“DuPont delivered volume and margin improvements in the majority of our post-spin segments through intense focus on innovation, disciplined execution and ongoing efficiency improvements and cost reduction, even in the midst of challenging currency and market environments,” said Ellen Kullman, DuPont Chair and CEO. “We expect performance in the remainder of the year to build on this momentum, driven by new product sales and benefits from our accelerated operational redesign. We are also announcing our fourth quarterly dividend increase since the beginning of 2012, reflecting our confidence in the continued strength of our ongoing, post-spin business and our ability to advance our record of stable growth while returning capital to shareholders.”
“2015 is an important year in our transformation. The spin-off of Chemours is on track for the middle of this year, and we expect to return to shareholders substantially all of the approximately $4 billion of one-time dividend proceeds within 12 to 18 months of the separation, a portion of which will occur before the end of 2015. Following the separation, DuPont will be fully focused on three highly attractive strategic focus areas where our science and engineering capabilities can deliver the greatest value for shareholders. We are confident that DuPont will continue its momentum, growing value for shareholders by leveraging our innovation platform, focusing intently on operational efficiency and costs, actively managing our portfolio, and through the disciplined return of capital.”
First Quarter Highlights
- Delivered first-quarter operating earnings per share of $1.34, which includes a $0.25 per share negative impact from currency in segment results.
- Delivered volume growth and operating margin improvement in Performance Materials, Safety & Protection, Nutrition & Health, and Industrial Biosciences and introduced over 600 new products in the first quarter, a 5 percent increase from prior year.
- Sales were $9.2 billion, down 9 percent versus prior year primarily due to impacts from currency (6 percent), portfolio changes (2 percent) and expected near-term industry-wide challenges in Agriculture and Performance Chemicals.
- Cost reductions from operational redesign contributed $0.10 per share to first-quarter operating earnings; 2015 total cost savings expected to increase to approximately $0.40 per share.
- Estimated negative currency impact in 2015 increased to approximately $0.80 per share, up from the $0.60 per share we previously communicated; Company now expects to be at the low end of the previously communicated outlook range of $4.00-$4.20 operating earnings per share, including Performance Chemicals segment.
Global Consolidated Net Sales – 1st Quarter
First quarter 2015 consolidated net sales of $9.2 billion decreased 9 percent versus last year, primarily due to a 6-percent negative currency impact, a 2-percent impact from portfolio changes and expected near-term industry-wide challenges in Agriculture and Performance Chemicals.
Outlook
Given the continued strengthening of the U.S. dollar relative to an average basket of exchange rates for our business for the week beginning April 13th, the company now estimates an approximately $0.80 per share negative currency impact in 2015, up from the $0.60 per share the Company estimated on January 23rd. The company also now anticipates that the operational redesign will deliver savings of approximately $0.40 per share in 2015. As a result, the company expects to be at the low end of its previously communicated outlook range of $4.00-$4.20 operating earnings per share for 2015, including the full year outlook for the Performance Chemicals segment.
The 2015 outlook does not reflect the planned separation of the Performance Chemicals segment or the impact of the expected return of capital related to the separation.
DuPont will hold a conference call and webcast on Tuesday, April 21, 2015, at 9:00 AM EDT to discuss this news release. The webcast and additional presentation materials can be accessed by visiting the company’s investor website (Events & Presentations) at www.investors.dupont.com. A replay of the conference call webcast will be available for 90 days by calling 1-630-652-3042, Passcode 38251527#. For additional information see the investor center at http://www.dupont.com.
Use of Non-GAAP Measures
Management believes that certain non-GAAP measurements 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 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 A, C and D.
About DuPont
DuPont (NYSE: DD) has been bringing world-class science and engineering to the global marketplace in the form of innovative products, materials, and services since 1802. The company believes that by collaborating with customers, governments, NGOs, and thought leaders we can help find solutions to such global challenges as providing enough healthy food for people everywhere, decreasing dependence on fossil fuels, and protecting life and the environment. For additional information about DuPont and its commitment to inclusive innovation, please visit http://www.dupont.com.
Forward Looking Statements: This document contains forward-looking statements which may be identified by their use of words like “plans,” “expects,” “will,” “believes,” “intends,” “estimates,” “anticipates” or other words of similar meaning. All statements that address expectations or projections about the future, including statements about the company’s strategy for growth, product development, regulatory approval, market position, anticipated benefits of recent acquisitions, timing of anticipated benefits from restructuring actions, outcome of contingencies, such as litigation and environmental matters, expenditures and financial results, are forward looking statements. Forward-looking statements are not guarantees of future performance and are based on certain assumptions and expectations of future events which may not be realized. Forward-looking statements also involve risks and uncertainties, many of which are beyond the company’s control. Some of the important factors that could cause the company’s actual results to differ materially from those projected in any such forward-looking statements are: fluctuations in energy and raw material prices; failure to develop and market new products and optimally manage product life cycles; ability to respond to market acceptance, rules, regulations and policies affecting products based on biotechnology; significant litigation and environmental matters; failure to appropriately manage process safety and product stewardship issues; changes in laws and regulations or political conditions; global economic and capital markets conditions, such as inflation, interest and currency exchange rates; business or supply disruptions; security threats, such as acts of sabotage, terrorism or war, weather events and natural disasters; ability to protect and enforce the company’s intellectual property rights; successful integration of acquired businesses and separation of underperforming or non-strategic assets or businesses and successful completion of the proposed spinoff of the Performance Chemicals segment including ability to fully realize the expected benefits of the proposed spinoff. The company undertakes no duty to update any forward-looking statements as a result of future developments or new information.
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04/21/15
Media Contact:
Stefan Weber
DuPont Deutschland Holding GmbH & Co. KG
Hugenottenallee 175, 63263 Neu-Isenburg, Germany
Telefon: +49 (0)6102 - 820 3631
stefan.weber@dupontholding.com
