DuPont Delivers Strong Fourth Quarter, Full-Year Sales and Earnings Growth
* Reuters is not responsible for the content in this press release.
Broad Global Presence and Agriculture Markets Boost Revenue Growth
WILMINGTON, Del., Jan. 22 /PRNewswire-FirstCall/ --
Highlights
-- Fourth quarter 2007 earnings were $.60 per share, compared to fourth
quarter 2006 earnings of $.94 per share. Excluding significant items,
earnings per share increased 27 percent to $.57 per share from $.45 per
share in the prior-year quarter (see Schedule B for a listing of
significant items.)
-- Sales increased 11 percent to $7.0 billion, reflecting 3 percent volume
growth, 3 percent higher local selling prices, 4 percent currency
benefit and a 1 percent net benefit related to portfolio and other
changes.
-- Sales in emerging markets grew 20 percent, led by Brazil, China and
India. Sales in the United States grew 5 percent despite lower U.S.
housing starts and auto builds.
-- Local selling price gains more than offset higher ingredient costs.
-- Fixed costs as a percentage of sales improved 210 basis points from the
prior-year quarter.
-- Fourth quarter 2007 segment pre-tax operating income (PTOI) increased
30 percent to $937 million, excluding significant items. Segment PTOI
margin on the same basis improved 210 basis points.
-- Full year 2007 earnings were $3.22 per share versus $3.38 in 2006.
Excluding significant items, 2007 earnings increased 14 percent to
$3.28 per share from $2.88 in the prior year.
"DuPont's strong earnings growth in the fourth quarter reflects our global
presence and the breadth of our product offerings," said Charles O. Holliday,
Jr., DuPont chairman and chief executive officer. "We delivered 14 percent
earnings per share growth for the year despite weakness in certain U.S.
markets and higher ingredient costs."
Global Consolidated Sales
Consolidated net sales increased 11 percent to $7.0 billion in the fourth
quarter. Outside the United States, sales increased 14 percent, boosted by 20
percent growth in emerging markets, particularly Brazil, China and India. A
summary of fourth quarter 2007 worldwide and regional sales performance is
shown below.
Three Months Ended
December 31, 2007 Percentage Change Due to:
(Dollars in billions) % Local Currency Portfolio/
$ Change Currency Effect Volume Other
Price
U.S. $2.3 5% 3 - 1 1
Europe 2.2 13% 3 10 (1) 1
Asia Pacific 1.4 17% 3 4 10 -
Canada & Latin America 1.1 15% 4 5 5 1
Total Consolidated Sales $7.0 11% 3 4 3 1
Net Income and Earnings Per Share
Net income for the fourth quarter 2007 was $545 million, or $.60 per
share, including a net benefit of $23 million, or $.03 per share, for
significant items. Fourth quarter 2006 net income was $871 million, or $.94
per share, including a net benefit of $449 million, or $.49 per share, for
significant items. See attached Schedule B for a listing of significant items
in both periods.
The table below shows the variances in fourth quarter 2007 earnings per
share (EPS) versus fourth quarter 2006.
EPS Analysis
EPS
4th Quarter 2006 $.94
Significant items .49
EPS excluding significant items .45
Local prices .25
Variable costs* (.19)
Volume .04
Fixed costs* (.02)
Currency .08
Pharmaceuticals .01
Tax (.10)
Other .05
4th Quarter 2007 excluding significant items $.57
Significant items .03
4th Quarter 2007-reported $.60
* Excludes volume and currency impact
These results are higher than the outlook issued by the company on January
9, largely due to finalization of the company's tax rate and higher business
performance.
Business Segment Performance
Segment sales and related percentage variances for fourth quarter 2007
versus the prior year quarter are shown in the table below.
SEGMENT SALES* Three Months Ended Percentage Change
(Dollars in billions) December 31, 2007 Due to:
% USD Portfolio
$ Change Price Volume and Other
Agriculture & Nutrition $1.3 23% 11% 11% 1%
Coatings & Color
Technologies 1.7 8% 6% 1% 1%
Electronic & Communication
Technologies 1.0 13% 5% 7% 1%
Performance Materials 1.7 12% 12% -2% 2%
Safety & Protection 1.4 4% 4% 1% -1%
* Segment sales include transfers
Segment PTOI for the fourth quarter 2007 was $804 million versus $576
million in the fourth quarter 2006. Excluding significant items, segment PTOI
increased 30 percent from $721 million to $937 million.
Current quarter segment PTOI, excluding significant items, and comparisons
with prior-year quarter are shown below.
PRE-TAX OPERATING INCOME EXCLUDING SIGNIFICANT ITEMS*
Three Months Ended December 31, 2007
(Dollars in millions) % Change vs.
2007 2006 2006
Agriculture & Nutrition $(89) $(148) 40%
Coatings & Color Technologies 216 205 5
Electronic & Communication
Technologies 156 112 39
Performance Materials 186 121 54
Pharmaceuticals 246 240 3
Safety & Protection 277 245 13
Other (55) (54) 2
$937 $721 30%
* See Schedule B and Schedule C for a listing of significant items and
their impact by segment.
The following are business segment highlights, excluding significant
items, comparing fourth quarter 2007 results to fourth quarter 2006.
Agriculture & Nutrition
-- Fourth quarter sales increased $237 million to $1.3 billion with strong
sales growth in all regions. Brazil delivered record revenue and
earnings growth this selling season, which was driven by robust demand
for Pioneer(R) brand seed with superior yield, advantaged market
channel capabilities and market share gains.
-- A seasonal PTOI loss of $89 million reflected an improvement of $59
million versus the prior-year quarter. Earnings gains were driven by
strong sales, improved margins, and cost productivity improvements,
moderated by planned growth investments. 2007 PTOI includes a gain of
$15 million relating to the divestiture of certain crop chemical
assets.
Coatings & Color Technologies
-- Sales increased to $1.7 billion. Broad-based sales increases outside
the United States, which were driven primarily by higher USD selling
prices, offset continued weakness in North American auto and housing
markets.
-- PTOI increased 5 percent to $216 million, compared to $205 million in
the prior-year quarter. Earnings grew substantially in coatings which
reflected fixed cost reductions and higher sales. This increase was
partially offset by the absence of a gain on the sale of assets in the
prior year and modest earnings declines in titanium dioxide.
Electronic & Communication Technologies
-- Sales grew to $1.0 billion, reflecting higher volumes, particularly in
Latin America and Asia, and higher USD selling prices. Price
improvements in North America increased revenue in the region compared
to the prior-year quarter.
-- PTOI increased to $156 million, including a $28 million gain from an
asset sale. Excluding the gain, PTOI increased 14 percent, reflecting
higher volumes in imaging and fluoroproducts and fixed cost
productivity.
Performance Materials
-- Sales grew to $1.7 billion primarily due to higher USD selling prices.
Volume growth in Latin America, Asia and Europe was more than offset by
lower demand in North America.
-- PTOI grew to $186 million, reflecting strong sales across all product
lines, currency benefits and fixed cost productivity. 2007 PTOI
includes a $16 million charge for a manufacturing asset write-down.
Safety & Protection
-- Sales grew to $1.4 billion, reflecting higher USD selling prices and
volume growth in the surfaces, Kevlar(R) and Nomex(R) product lines.
-- PTOI grew to $277 million, reflecting the segment's diverse products
and markets, which offset weakness in the U.S. housing market.
Additional information on segment performance is available on the DuPont
Investor Center website at www.dupont.com.
Outlook
The company today reaffirmed its 2008 full-year earnings outlook of $3.35
to $3.55 per share announced on January 9. For the first quarter 2008, the
company expects to earn $1.12 to $1.17 per share. In the first quarter 2007,
the company earned $1.07 per share, excluding a $.06 significant item charge.
In a letter to shareholders posted today, Holliday highlighted the
company's recent improvements in profitability, return on capital and
productivity. Holliday also outlined how the company plans to achieve higher
profitability in 2008 and beyond by making advances in agriculture, safety and
protection, emerging markets and cost productivity. The letter is available
at www.dupont.com.
"We are confident we can deliver attractive growth in earnings in 2008,
and see even stronger growth in the years to follow - continuing our
improvement of the last three years," Holliday said.
The company announced that it will host an investors meeting March 14 at 9
a.m. (EST) in New York City. Details for the meeting are available on the
DuPont Investor Center website at www.dupont.com.
Use of Non-GAAP Measures
Management believes that measures of income excluding significant items
("non-GAAP" information) 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 Schedule D.
DuPont (NYSE: DD) 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.
E. I. du Pont de Nemours and Company
Consolidated Income Statements
(Dollars in millions, except per share amounts)
SCHEDULE A
Three Months Ended Twelve Months Ended
December 31, December 31,
2007 2006 2007 2006
Net sales (a) $6,983 $6,276 $29,378 $27,421
Other income, net (b),
(c),(d),(h) 230 559 1,275 1,561
Total 7,213 6,835 30,653 28,982
Cost of goods sold and
other operating charges
(a),(b),(e),(f),(g),(j),(k) 5,349 5,114 21,565 20,440
Selling, general and
administrative expenses 852 824 3,364 3,224
Amortization of intangible
assets 50 55 213 227
Research and development
expense 359 341 1,338 1,302
Interest expense 110 113 430 460
Total 6,720 6,447 26,910 25,653
Income before income taxes
and minority interests 493 388 3,743 3,329
Provision for (benefit from)
income taxes (h),(i) (54) (465) 748 196
Minority interests in
earnings (losses) of
consolidated subsidiaries 2 (18) 7 (15)
Net income $545 $871 $2,988 $3,148
Basic earnings per share
of common stock $0.60 $0.94 $3.25 $3.41
Diluted earnings per
share of common stock $0.60 $0.94 $3.22 $3.38
Dividends per share of
common stock $0.41 $0.37 $1.52 $1.48
Average number of shares
outstanding used in
earnings per share
(EPS) calculation:
Basic 899,847,021 921,039,777 917,132,033 921,474,024
Diluted 906,478,654 928,010,485 925,402,371 928,600,741
See Notes to Schedules of Significant Items for additional information.
E. I. du Pont de Nemours and Company
Schedules of Significant Items
(Dollars in millions, except per share amounts)
SCHEDULE B
SIGNIFICANT ITEMS (1)
Pre-tax After-tax ($ Per Share)
2007 2006 2007 2006 2007 2006
1st Quarter - Total $(52) $(128) $(52) $(50) $(0.06) $(0.05)
2nd Quarter - Total $- $- $- $31 $- $0.03
3rd Quarter - Total $(40) $50 $(26) $33 $(0.03) $0.03
4th Quarter:
Impairment charge -
Performance Materials (d) $(165) $- $(135) $- $(0.15) $-
Reversal of certain
litigation accruals -
Performance Materials (e) 32 - 46 - 0.05 -
Income tax related items:
Reversal of accruals related
to tax settlements and
valuation allowances and
reversal of interest on tax
settlements (h) 6 90 112 518 0.13 0.56
AJCA related adjustments (i) - - - 20 - 0.02
Restructuring charges (f) - (194) - (119)(2) - (0.13)
Hurricane insurance
recoveries (b) - 93 - 60 - 0.07
Asbestos insurance
recoveries (c) - 61 - 40 - 0.04
Sales terms and expense
accrual changes (a) - (58) - (39) - (0.04)
Impairment loss on asset
held-for-sale (g) - (47) - (31) - (0.03)
4th Quarter - Total $(127) $(55) $23 $449 $0.03 $0.49
Full Year Total $(219) $(133) $(55) $463 $(0.06) $0.50
(1) See Notes to Schedules of Significant Items for additional information
and Schedule C for detail by segment.
(2) After-tax amount is net of minority interest benefit of $20 or $0.02
per share.
E. I. du Pont de Nemours and Company
Notes to Schedules of Significant Items
(Dollars in millions, except per share amounts)
(a) In the fourth quarter 2006, the company recorded sales on a
destination basis which were historically recorded when shipped, and
also adjusted accruals which were historically recorded on a lag-month
basis. The impact of these changes in the fourth quarter and full year
2006 was a reduction to net sales of $107, pretax of $58 and net
income of $39 or $.04 per share. Sales and Pretax amounts by segment
were: $15 and $6 - Agriculture & Nutrition; $31 and $17 - Coatings &
Color Technologies; $11 and $5 - Electronic & Communication
Technologies; $30 and $17 - Performance Materials; and $20 and $13 -
Safety & Protection, respectively.
(b) Fourth quarter and full year 2006 includes a benefit of $15 in Other
income and a benefit of $78 in Cost of goods sold and other operating
charges resulting from insurance recoveries relating to the damage
suffered from Hurricane Katrina in 2005. Pretax amounts for the
fourth quarter 2006 items by segment were: $80 - Coatings & Color
Technologies and $13 - Safety & Protection. Full year 2006 also
includes a third quarter benefit of $50 in Cost of goods sold and
other operating charges resulting from Hurricane Katrina insurance
recoveries. Pretax amounts by segment for the third quarter benefit
were: $43 - Coatings & Color Technologies and $7 - Safety &
Protection.
(c) Fourth quarter and full year 2006 includes a benefit of $61 in Other
income from insurance recoveries, net of fees, which relate to
asbestos litigation expenses incurred by the company in prior periods.
Pretax amounts by segment for the insurance recoveries were: $7 -
Agriculture & Nutrition; $19 - Coatings & Color Technologies; $10 -
Electronic & Communication Technologies; $12 - Performance Materials;
and $13 - Safety & Protection.
(d) Fourth quarter and full year 2007 includes a $165 charge in Other
income to adjust the carrying value of the company's investment in a
50/50 polyester films joint venture which is reported in the
Performance Materials segment.
(e) Fourth quarter 2007 includes a net $32 benefit in Cost of goods sold
and other operating charges resulting from the reversal of certain
litigation accruals in the Performance Materials segment established
in prior periods for the elastomers antitrust matter. Including a net
$52 charge taken in the first quarter 2007, the full year 2007
reflects a net $20 charge in Cost of goods sold and other operating
charges for the same matter.
(f) Fourth quarter and full year 2006 includes a restructuring charge of
$194 in Cost of goods sold and other operating charges associated with
the investment and streamlining program announced during the fourth
quarter 2006. Due to the realignment of certain businesses in 2007,
$122 of the charge was reflected within the Agriculture & Nutrition
segment and $72 was reflected within the Performance Materials
segment. The charge consisted of employee separation and employee
related costs of $64, primarily associated with the elimination of
approximately 1,500 positions globally, and asset impairment costs of
$130.
(g) Fourth quarter and full year 2006 includes an asset impairment charge
of $47 in Cost of goods sold and other operating charges associated
with an underperforming industrial chemicals asset held for sale
within the Safety & Protection segment.
(h) Fourth quarter and full year 2007 includes benefits for the reversal
of accrued interest of $6 ($4 after-tax) in Other income and the
reversal of income tax accruals of $108 associated with favorable
settlement of certain prior year tax contingencies.
Fourth quarter and full year 2006 includes benefits for the reversal
of accrued interest of $90 ($59 after-tax) in Other income and the
reversal of income tax accruals of $459 associated with favorable
settlement of certain prior year tax contingencies and tax valuation
allowances. Full year 2006 also includes benefits for the reversal of
accrued interest of $7 ($4 after-tax) in Other income and the reversal
of income tax accruals of $44 associated with favorable settlement of
certain prior year tax contingencies. Additionally, full year 2006
includes a tax benefit of $31 associated with an increase in the
deferred tax assets of a European subsidiary for a tax basis
investment loss recognized on the local tax return.
(i) Fourth quarter and full year 2006 includes the reversal of income tax
accruals of $20 related to the finalization of taxes related to the
Company's repatriation of foreign earnings under the American Jobs
Creation Act of 2004 (AJCA).
(j) Full year 2007 includes a $40 charge in Cost of goods sold and other
operating charges for existing litigation in the Other segment
relating to a discontinued business.
(k) Full year 2006 includes a restructuring charge of $135 in Cost of
goods sold and other operating charges in connection with the
company's plans to close and consolidate certain manufacturing and
laboratory sites in the Coatings & Color Technologies segment. The
charge consisted of employee separation costs, primarily in Europe and
the U.S., for approximately 1,300 employees and other exit costs.
E. I. du Pont de Nemours and Company
Consolidated Segment Information
(Dollars in millions)
SCHEDULE C
Three Months Ended Twelve Months Ended
December 31, December 31,
SEGMENT SALES (1) 2007 2006(2) 2007 2006(2)
Agriculture & Nutrition $1,251 $1,014 $6,842 $6,008
Coatings & Color Technologies 1,700 1,575 6,609 6,290
Electronic & Communication
Technologies 963 854 3,797 3,573
Performance Materials 1,711 1,523 6,630 6,179
Safety & Protection 1,397 1,338 5,641 5,496
Other 42 39 178 180
Total Segment sales $7,064 $6,343 $29,697 $27,726
Elimination of transfers (81) (67) (319) (305)
Consolidated net sales $6,983 $6,276 $29,378 $27,421
(1) Sales for the reporting segments include transfers.
(2) Certain reclassifications of 2006 segment data have been made to
reflect changes in organizational structure for 2007.
E. I. du Pont de Nemours and Company
Consolidated Segment Information
(Dollars in millions)
SCHEDULE C (continued)
Three Months Ended Twelve Months Ended
December 31, December 31,
PRETAX OPERATING INCOME/(LOSS) 2007 2006(1) 2007 2006(1)
(PTOI)
Agriculture & Nutrition $(89) $(269) $894 $604
Coatings & Color Technologies 216 287 840 817
Electronic & Communication
Technologies 156 117 594 577
Performance Materials 53 44 626 559
Pharmaceuticals 246 240 949 819
Safety & Protection 277 211 1,199 1,080
Other (55) (54) (224) (173)
Total Segment PTOI $804 $576 $4,878 $4,283
Net exchange losses (2) (35) (9) (85) (4)
Corporate expenses & net interest (276) (179) (1,050) (950)
Income before income taxes and
minority interests $493 $388 $3,743 $3,329
Three Months Ended Twelve Months Ended
December 31, December 31,
SIGNIFICANT ITEMS BY SEGMENT 2007 2006(1) 2007 2006(1)
(PRE-TAX) (3)
Agriculture & Nutrition (a),(c),(f) $- $(121) $- $(121)
Coatings & Color Technologies (a),
(b),(c),(k) - 82 - (10)
Electronic & Communication
Technologies (a),(c) - 5 - 5
Performance Materials (a),(c),(d),
(e),(f) (133) (77) (185) (77)
Safety & Protection (a),(b),(c),(g) - (34) - (27)
Other (j) - - (40) -
Total Significant Items by segment $(133) $(145) $(225) $(230)
Three Months Ended Twelve Months Ended
December 31, December 31,
PTOI EXCLUDING SIGNIFICANT ITEMS 2007 2006(1) 2007 2006(1)
Agriculture & Nutrition $(89) $(148) $894 $725
Coatings & Color Technologies 216 205 840 827
Electronic & Communication Technologies 156 112 594 572
Performance Materials 186 121 811 636
Pharmaceuticals 246 240 949 819
Safety & Protection 277 245 1,199 1,107
Other (55) (54) (184) (173)
Total Segment PTOI excluding
Significant Items $937 $721 $5,103 $4,513
(1) Certain reclassifications of 2006 segment data have been made to
reflect changes in organizational structure for 2007.
(2) Net after-tax exchange activity for the three and twelve months ended
December 31, 2007 were losses of $14 and $31, respectively. For the
three and twelve months ended December 31, 2006, the net after-tax
exchange activity were losses of $11 and $30, respectively. Gains and
losses resulting from the company's hedging program are largely offset
by associated tax effects.
(3) Refer to the Notes to Schedules of Significant Items for additional
information.
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 Twelve Months Ended
December 31, December 31,
% %
2007 2006 Change 2007 2006 Change
Segment sales $7,064 $6,343 11% $29,697 $27,726 7%
Significant Items
included in
segment sales - 107 - 107
Segment sales
excluding
Significant Items $7,064 $6,450 10% $29,697 $27,833 7%
Segment PTOI $804 $576 40% $4,878 $4,283 14%
Significant Items
charge included
in PTOI (per
Schedule B) 133 145 225 230
Segment PTOI
excluding
Significant Items $937 $721 30% $5,103 $4,513 13%
Net Income $545 $871 -37% $2,988 $3,148 -5%
Significant Items
(benefit)/charge
included in Net
Income (per
Schedule B) (23) (449) 55 (463)
Net Income excluding
Significant Items $522 $422 24% $3,043 $2,685 13%
EPS $0.60 $0.94 -36% $3.22 $3.38 -5%
Significant Items
(benefit)/charge
included in EPS
(per Schedule B) (0.03) (0.49) 0.06 (0.50)
EPS excluding
Significant Items $0.57 $0.45 27% $3.28 $2.88 14%
Average number of
diluted shares
outstanding 906,478,654 928,010,485 -2.3% 925,402,371 928,600,741 -0.3%
Calculation of Segment PTOI as a Percent of Segment Sales
Three Months Ended Twelve Months Ended
December 31, December 31,
% %
2007 2006 Change 2007 2006 Change
Segment PTOI excluding
Significant Items $937 $721 30% $5,103 $4,513 13%
Segment sales excluding
Significant Items $7,064 $6,450 10% $29,697 $27,833 7%
Segment PTOI as a percent
of segment sales 13.3% 11.2% 17.2% 16.2%
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 / Adjusted EBITDA to Consolidated Income
Statement
Three Months Ended Twelve Months Ended
December 31, December 31,
2007 2006 2007 2006
Income before income taxes and
minority interests $493 $388 $3,743 $3,329
Less: Minority interest in
(earnings)/losses of
consolidated subsidiaries (1) (2) 20 (9) 16
Add: Net interest expense (2) 88 10 379 322
Adjusted EBIT 579 418 4,113 3,667
Add: Depreciation and amortization (3) 334 339 1,337 1,353
Adjusted EBITDA $913 $757 $5,450 $5,020
(1) Excludes income taxes.
(2) Includes interest expense plus amortization of capitalized interest
less miscellaneous interest.
(3) Excludes amortization of capitalized interest.
Reconciliations of Fixed Costs as a Percent of Sales
Three Months Ended Twelve Months Ended
December 31, December 31,
2007 2006 2007 2006
Total charges and expenses -
consolidated income statements $6,720 $6,447 $26,910 $25,653
Remove:
Interest expense (110) (113) (430) (460)
Variable costs (1) (3,522) (3,234) (14,378) (13,300)
Significant Items -benefit/
(charge)(2) 32 (114) (60) (199)
Fixed costs $3,120 $2,986 $12,042 $11,694
Consolidated net sales $6,983 $6,276 $29,378 $27,421
Add: Significant Items included
in net sales - 107 - 107
Adjusted consolidated net sales $6,983 $6,383 $29,378 $27,528
Fixed costs as a percent of adjusted
consolidated net sales 44.7% 46.8% 41.0% 42.5%
(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)
Reconciliation of Earnings Per Share (EPS) Outlook
Year Ended Quarter Ended
December 31, March 31,
2008 2007 2006 2008 2007
Outlook Actual Actual Outlook Actual
Earnings per share - excluding
Significant Items $3.35 to $3.28 $2.88 $1.12 to 1.07
$3.55 $1.17
Significant Items included
in EPS:
Impairment charge -
Performance Materials - (0.15)
Litigation related
charges - Other - (0.03) - - -
Litigation related
charges, net -
Performance Materials - (0.01) - - (0.06)
Restructuring charges -
Agriculture & Nutrition - - (0.08) - -
Performance Materials - - (0.05) - -
Coatings & Color
Technologies - - (0.10) - -
American Jobs Creation Act - - 0.02 - -
Hurricane related items - - 0.10 - -
Asbestos insurance recoveries - - 0.04 - -
Asset impairment - Safety &
Protection - - (0.03) - -
Sales terms and expense
accrual changes - - (0.04) - -
Corporate tax-related items - 0.13 0.64 - -
Net (charge)/benefit for
Significant Items - (0.06) 0.50 - (0.06)
Reported EPS $3.35 to $3.22 $3.38 $1.12 to $1.01
$3.55 $1.17
Reconciliation of Base Income Tax Rate to Effective Income Tax Rate
Three Months Ended Twelve Months Ended
December 31, December 31,
2007 2006 2007 2006
Income before income taxes and
minority interests $493 $388 $3,743 $3,329
Add: Significant Items - charge 127 55 219 133
Net exchange losses 35 9 85 4
Income before income taxes,
Significant Items, exchange
gains/losses and minority interests $655 $452 $4,047 $3,466
Provision for income taxes $(54) $(465) $748 $196
Add: Tax benefit on Significant
Items 150 484 164 576
Tax benefit/(expense) on
exchange gains/losses 21 (2) 54 (26)
Provision for income taxes,
excluding taxes on Significant
Items and exchange gains/losses $117 $17 $966 $746
Effective income tax rate (11.0)% (119.8)% 20.0% 5.9%
Base income tax rate 17.9% 3.8% 23.9% 21.5%
SOURCE DuPont
Anthony Farina of DuPont, +1-302-774-4005, anthony.r.farina@usa.dupont.com
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