Select your language


News Release

DuPont reports results for Q3

DuPont reports results for Q3

WILMINGTON, Del., Oct. 27, 2015 – DuPont (NYSE: DD), a science company that brings world-class, innovative products, materials, and services to the global marketplace, today announced third-quarter 2015 operating earnings of $0.13 per share compared with $0.39 per share in the prior year.  GAAP1 earnings were $0.14 per share, compared with $0.36 per share in the prior year.

Third-quarter sales were $4.9 billion, down 17 percent versus prior year due to negative impacts from currency (8 percent), portfolio (1 percent), volume (7 percent) and local price and product mix (1 percent).  Year-to-date sales were $19.8 billion, down 12 percent versus prior year due to negative impacts from currency (7 percent), portfolio (2 percent) and volume (3 percent). 

“While our bottom line continues to benefit from the positive effects of our operational redesign and productivity improvements, we are not pleased with our results this quarter,” said Nick Fanandakis, Executive Vice President and CFO. “We saw significant negative impacts from currency as well as market weakness in agriculture, emerging market industrial production, and oil and gas. We remain on track with our revised annual guidance of operating earnings per share of about $2.75, an increase from the prior year of 3 percent excluding currency.”

“Amid the current challenging macro environment, our priority is to aggressively manage what is within our control, including taking a fresh look at DuPont’s cost structure and capital allocation strategy to identify ways to further improve shareholder return,” said Ed Breen, DuPont Interim Chair and CEO. “Addressing these areas even more intensely will put DuPont in a stronger position to capitalize over the long term on our unique science and leading positions in attractive growth markets while generating appropriate returns for shareholders in the near term.”

1Generally Accepted Accounting Principles (GAAP)

 

Third-Quarter Highlights

  • Third-quarter operating earnings per share were $0.13 versus $0.39 in prior year.  GAAP1 earnings per share were $0.14 versus $0.36 in prior year.
  • Results reflected macro challenges including currency; industry wide challenges in Ag markets, particularly in Brazil; and continued weakness in emerging markets and oil and gas markets affecting Safety & Protection, partially offset by continued positive effects of the operational redesign and cost reductions in the quarter, including performance-based compensation.
  • Segment pre-tax operating earnings of $433 million included $187 million, or $0.17 per share, of negative impact from currency.  Growth in Electronics & Communications and Industrial Biosciences was more than offset by declines in Agriculture, Performance Materials and Safety & Protection. 
  • Cost reductions from operational redesign contributed an incremental $0.10 per share to third-quarter operating earnings, driving operating margin improvement in four segments; on track to deliver approximately $0.40 per share in incremental savings in 2015.
  • $2 billion accelerated share repurchase program launched in the quarter; on October 22nd, announced fourth quarter dividend of $0.38 per share.

 

Year-to-Date Highlights

  • Reported year-to-date operating earnings per share of $2.49 versus $2.79 in prior year.  Excluding negative currency impact of $0.53 per share, operating earnings per share would have increased 8 percent. GAAP1 earnings per share were $2.33 versus $2.76 in prior year.
  • Accelerated $1.3 billion annual run-rate cost savings expected from operational redesign to year-end 2016; increased targeted cost savings from operational redesign to about $1.6 billion by year-end 2017. Current review of cost, working capital performance, and capital spending will assure that our cost actions will result in a further net benefit to the bottom line.
  • DuPont continues to expect full-year 2015 operating earnings to be about $2.75 per share.  Negative currency impact expected to be $0.72 per share.  Excluding the impact of currency, the guidance for full-year operating earnings per share, including expected benefits from share repurchases and cost savings, represents an approximate 3-percent increase year over year.

 

Outlook

The company reaffirms its recently updated outlook for full-year 2015 operating earnings of about $2.75 per share.  The outlook reflects continued strengthening of the U.S. dollar versus currencies in emerging markets, particularly the Brazilian Real; a further weakening of agricultural markets, primarily in Brazil; and continued weakness in emerging markets.  Negative currency impact is expected to be $0.72 per share.  Excluding the impact of currency, the guidance for full-year operating earnings per share, including expected benefits from share repurchases and cost savings, represents an approximate 3-percent increase year over year.

 

#   #   #

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.



Previous