Agriculture Leads DuPont to Solid Second Quarter Growth

Company Increases Lower End of 2008 Earnings Outlook Range
WILMINGTON, Del., July 22 /PRNewswire-FirstCall/ --

Highlights

-- Second quarter 2008 earnings per share grew 13 percent to $1.18, up
from $1.04 in the second quarter of 2007. Earnings benefited $.07 per share
from a litigation settlement and a lower base tax rate.
-- Sales increased 12 percent to $8.8 billion, reflecting 7 percent higher
local selling prices, 5 percent currency benefit, 1 percent higher volumes and
a 1 percent reduction from portfolio changes. Sales outside the United States
grew 18 percent, while sales in the United States grew 5 percent despite
weakness in housing and automotive markets.
-- Local selling prices increased 7 percent, partially offsetting a 15
percent increase in energy, raw materials and freight costs in the second
quarter.
-- Agriculture & Nutrition sales grew 23 percent, reflecting strong global
demand for the company's corn, soybean and crop protection products.
-- Fixed costs as a percentage of sales improved 200 basis points from the
prior-year quarter, reflecting the company's continued cost productivity
improvement programs.
-- DuPont (NYSE: DD) increased the lower end of its full year 2008
earnings outlook, narrowing the range to $3.45 to $3.55 per share.
"DuPont captured strong growth in agriculture and emerging markets and
grew earnings despite accelerating raw material and energy costs in the second
quarter. We are executing well in a challenging environment," said DuPont
Chairman and CEO Charles O. Holliday, Jr. "DuPont's strategic transformation
in recent years is enabling us to successfully adapt to the new reality of
significantly higher commodity costs and we remain focused on achieving our
2010 accelerated growth plan."
Global Consolidated Sales and Net Income
Consolidated net sales grew 12 percent to $8.8 billion. Sales outside the
United States grew 18 percent and accounted for 60 percent of worldwide sales.
Sales in emerging markets grew 23 percent. A summary of second quarter 2008
worldwide and regional sales performance is shown in the table below.

Three Months Ended
June 30, 2008 Percentage Change Due to:
Local
% Currency Currency
(dollars in billions) $ Change Price Effect Volume Portfolio
U.S. $3.5 5 9 - (4) -
Europe 2.7 18 4 12 3 (1)
Asia Pacific 1.5 18 5 4 11 (2)
Canada & Latin America 1.1 17 6 7 5 (1)

Total Consolidated Sales $8.8 12 7 5 1 (1)

Net income for the second quarter of 2008 was $1,078 million, or $1.18 per
share. Second quarter 2007 net income was $972 million, or $1.04 per share.
Earnings Per Share
The table below shows the variances in second quarter 2008 earnings per
share (EPS) versus second quarter 2007. The 13 percent increase in earnings
per share reflects higher local prices, favorable currency impact, and volume
growth outside the United States. These gains were partially offset by higher
ingredient costs and increased spending for growth initiatives and capacity
expansions.

EPS Analysis
EPS

2nd Quarter 2007 $1.04

Variances:
Local prices .42
Variable costs* (.51)
Volume .03
Fixed costs* (.04)
Currency .11
Pharmaceuticals .02
Tax rate** .03
Litigation settlement .04
Fewer shares .03
Lower interest expense .01
2nd Quarter 2008 $1.18

* Excludes volume and currency impact
** Includes $0.03 from a favorable tax settlement

Business Segment Performance
Segment sales and related variances versus the second quarter of 2007 are
shown in the table below:

SEGMENT SALES* Three Months Ended Percentage Change
(Dollars in billions) June 30, 2008 Due to:

USD
$ % Change Price Volume Portfolio
Agriculture & Nutrition $2.5 23 15 9 (1)
Coatings & Color
Technologies 1.9 10 11 (1) -
Electronic & Communication
Technologies 1.1 10 7 1 2
Performance Materials 1.8 8 13 (5) -
Safety & Protection 1.6 8 9 2 (3)

* Segment sales include transfers

Segment pre-tax operating income (PTOI) was $1.7 billion, up 8 percent
versus the second quarter 2007, as shown below:

PRE-TAX OPERATING INCOME
Three Months Ended
June 30, 2008
% Change vs.
(Dollars in millions) 2008 2007 2007

Agriculture & Nutrition $504 $428 18
Coatings & Color Technologies 247 226 9
Electronic & Communication
Technologies 170 176 (3)
Performance Materials 223 227 (2)
Safety & Protection 302 318 (5)
Total Growth Platforms 1,446 1,375 5
Pharmaceuticals 265 241 10
Other 1 (37) nm
Total Segments $1,712 $1,579 8

The following are business segment highlights comparing second quarter
2008 results to second quarter 2007.
Agriculture & Nutrition
-- Sales increased $467 million, or 23 percent, to $2.5 billion,
reflecting record seed revenue and strong global pricing actions across the
platform.
-- PTOI increased 18 percent to $504 million, driven by higher volumes and
USD prices across all businesses, partially offset by growth investments,
higher commodity prices, and a $52 million charge on open soybean contracts.
Coatings & Color Technologies
-- Sales increased 10 percent to $1.9 billion. Higher USD selling price
in all businesses and volume growth in emerging markets more than offset lower
volumes in North America.
-- PTOI increased 9 percent to $247 million. Sales growth and favorable
currency offset the impact of weak auto and housing markets and higher raw
material and transportation costs.
Electronic & Communication Technologies
-- Sales grew 10 percent to $1.1 billion, led by price gains and favorable
currency. Strong demand for photovoltaics, printed packaging, and
refrigerants was partially offset by weakness in U.S. automotive electronics.
-- PTOI was $170 million compared to $176 million in the prior-year
quarter, which included a $25 million pre-tax inventory valuation benefit.
Excluding this item, PTOI increased 13 percent, reflecting strong sales growth
and cost productivity gains.
Performance Materials
-- Sales grew 8 percent to $1.8 billion, driven by price gains, currency,
and strong growth in Asia Pacific. Volumes outside Asia declined due to
weakness in automotive markets and the impact of scheduled production outages.
-- PTOI decreased 2 percent to $223 million as significantly higher
ingredient costs and lower volumes offset the benefit of price increases.
Safety & Protection
-- Sales grew 8 percent to $1.6 billion. Pricing gains, particularly in
chemicals, favorable currency and broad-based volume growth in emerging
markets was partially offset by lower volumes in the U.S. housing market.
-- PTOI of $302 million was down 5 percent. Significant earnings growth
in the chemical businesses was offset by less favorable product mix, lower
volumes in U.S. housing, higher raw material costs, and higher fixed costs
associated with growth investments.
Additional information on segment performance is available on the DuPont
Investor Center website at www.dupont.com.
Outlook
The company increased the lower end of its full year 2008 earnings
outlook, narrowing the range to $3.45 to $3.55 per share. The previous
earnings outlook was a range of $3.40 to $3.55. First half 2008 earnings per
share increased significantly versus prior year, principally reflecting strong
growth in agriculture earnings, which are concentrated in the first half of
the year. The company expects second half 2008 earnings per share to be
modestly lower than last year due to the impact of higher energy and
ingredient costs, lower demand in certain developed markets, lower income from
asset sales, and a higher base tax rate. The company expects second half 2008
earnings per share to be about equally split between the third and fourth
quarters.
"DuPont is executing extremely well in a tougher environment," Holliday
said. "We remain focused on achieving the growth objectives of our 2010
Acceleration Plan."
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 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 Six Months Ended
June 30, June 30,
2008 2007 2008 2007
Net sales $8,837 $7,875 $17,412 $15,720
Other income, net 442 364 637 680
Total 9,279 8,239 18,049 16,400

Cost of goods sold and
other operating
charges (a) 6,426 5,602 12,382 11,196
Selling, general and
administrative
expenses 987 884 1,921 1,730
Research and
development expense 360 337 690 647
Interest expense 94 108 174 207

Total 7,867 6,931 15,167 13,780

Income before income
taxes and minority
interests 1,412 1,308 2,882 2,620
Provision for income
taxes 335 335 608 700
Minority interests in
(losses) earnings of
consolidated
subsidiaries (1) 1 5 3

Net income $1,078 $972 $2,269 $1,917

Basic earnings per
share of common stock $1.19 $1.05 $2.51 $2.07

Diluted earnings per
share of common stock $1.18 $1.04 $2.49 $2.05

Dividends per share of
common stock $0.41 $0.37 $0.82 $0.74

Average number of
shares outstanding
used in earnings per
share (EPS)
calculation:
Basic 902,617,000 923,817,000 901,627,000 923,907,000
Diluted 910,080,000 932,809,000 908,132,000 933,027,000

(a) See Schedules of Significant Items for additional information.

E. I. du Pont de Nemours and Company
Consolidated Balance Sheets
(Dollars in millions, except per share amounts)

SCHEDULE A (continued)
June 30, December 31,
2008 2007
Assets
Current assets
Cash and cash equivalents $1,303 $1,305
Marketable securities 210 131
Accounts and notes receivable, net 8,477 5,683
Inventories 5,021 5,278
Prepaid expenses 160 199
Income taxes 565 564
Total current assets 15,736 13,160
Property, plant and equipment, net of
accumulated depreciation (June 30, 2008 -
$16,425; December 31, 2007 - $15,733) 10,922 10,860
Goodwill 2,085 2,074
Other intangible assets 2,796 2,856
Investment in affiliates 892 818
Other assets 5,163 4,363
Total $37,594 $34,131

Liabilities and Stockholders' Equity
Current liabilities
Accounts payable $2,846 $3,172
Short-term borrowings and capital
lease obligations 4,432 1,370
Income taxes 170 176
Other accrued liabilities 3,188 3,823
Total current liabilities 10,636 8,541
Long-term borrowings and capital lease
obligations 5,361 5,955
Other liabilities 7,287 7,255
Deferred income taxes 966 802
Total liabilities 24,250 22,553
Minority interests 441 442

Commitments and contingent liabilities

Stockholders' equity
Preferred stock 237 237
Common stock, $0.30 par value;
1,800,000,000 shares authorized; issued at
June 30, 2008 - 989,194,000; December 31,
2007 - 986,330,000 297 296
Additional paid-in capital 8,336 8,179
Reinvested earnings 11,466 9,945
Accumulated other comprehensive loss (706) (794)
Common stock held in treasury, at cost
(87,041,000 shares at June 30, 2008
and December 31, 2007) (6,727) (6,727)
Total stockholders' equity 12,903 11,136
Total $37,594 $34,131

E. I. du Pont de Nemours and Company
Condensed Consolidated Statements of Cash Flows
(Dollars in millions)

SCHEDULE A (continued)
Six Months Ended
June 30,
2008 2007

Cash (used for) provided by operating activities $(433) $383

Investing activities
Purchases of property, plant and equipment (892) (621)
Investments in affiliates (19) (23)
Payments for Businesses (Net of Cash Acquired) (67) -
Other investing activities - net (356) (28)
Cash used for investing activities (1,334) (672)

Financing activities
Dividends paid to stockholders (749) (692)
Net increase in borrowings 2,443 472
Other financing activities - net 46 (315)
Cash provided by (used for) financing activities 1,740 (535)

Effect of exchange rate changes on cash 25 (3)

Decrease in cash and cash equivalents (2) (827)

Cash and cash equivalents at beginning of period 1,305 1,814

Cash and cash equivalents at end of period $1,303 $987

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 ($ Per Share)
2008 2007 2008 2007 2008 2007
1st Quarter - Total (a) $- $(52) $- $(52) $- $(0.06)

2nd Quarter $- $- $- $- $- $-

2nd Quarter - Total $- $- $- $- $- $-

Year-to-date - Total $- $(52) $- $(52) $- $(0.06)

(a) First quarter 2007 includes a net $52 charge in Cost of goods sold and
other operating charges for litigation in the Performance Materials segment in
connection with the elastomers antitrust matter.
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 Six Months Ended
June 30, June 30,

SEGMENT SALES (1) 2008 2007 2008 2007
Agriculture & Nutrition $2,541 $2,074 $5,424 $4,524
Coatings & Color Technologies 1,867 1,701 3,512 3,260
Electronic & Communication
Technologies 1,074 979 2,100 1,899
Performance Materials 1,810 1,679 3,523 3,268
Safety & Protection 1,583 1,466 2,948 2,836
Other 44 50 84 93
Total Segment sales $8,919 $7,949 $17,591 $15,880

Elimination of transfers (82) (74) (179) (160)
Consolidated net sales $8,837 $7,875 $17,412 $15,720

(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 Six Months Ended
June 30, June 30,

PRETAX OPERATING INCOME/(LOSS)(PTOI) 2008 2007 2008 2007
Agriculture & Nutrition $504 $428 $1,290 $1,079
Coatings & Color Technologies 247 226 437 420
Electronic & Communication
Technologies 170 176 345 300
Performance Materials 223 227 442 377
Safety & Protection 302 318 574 609
Total Growth Platforms 1,446 1,375 3,088 2,785

Pharmaceuticals 265 241 500 466
Other 1 (37) (25) (93)
Total Segment PTOI $1,712 $1,579 $3,563 $3,158

Net exchange losses (1) (29) 8 (184) (20)
Corporate expenses & net interest (271) (279) (497) (518)
Income before income taxes and
minority interests $1,412 $1,308 $2,882 $2,620

Three Months Ended Six Months Ended
June 30, June 30,

SIGNIFICANT ITEMS BY SEGMENT
(PRE-TAX) (2) 2008 2007 2008 2007
Agriculture & Nutrition $- $- $- $-
Coatings & Color Technologies - - - -
Electronic & Communication
Technologies - - - -
Performance Materials - - - (52)
Safety & Protection - - - -
Other - - - -
Total Significant Items by segment $- $- $- $(52)

Three Months Ended Six Months Ended
June 30, June 30,

PTOI EXCLUDING SIGNIFICANT ITEMS 2008 2007 2008 2007
Agriculture & Nutrition $504 $428 $1,290 $1,079
Coatings & Color Technologies 247 226 437 420
Electronic & Communication
Technologies 170 176 345 300
Performance Materials 223 227 442 429
Safety & Protection 302 318 574 609
Total Growth Platforms 1,446 1,375 3,088 2,837

Pharmaceuticals 265 241 500 466
Other 1 (37) (25) (93)
Total Segment PTOI excluding
Significant Items $1,712 $1,579 $3,563 $3,210

(1) Net after-tax exchange activity for the three months ended June 30,
2008 and 2007 were losses of $37 and $7, respectively. Net after-tax exchange
activity for the six months ended June 30, 2008 and 2007 were losses of $51
and $25, respectively. Gains and losses resulting from the company's hedging
program are largely offset by associated tax effects. See Schedule D for
additional information.

(2) 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
June 30,
%
2008 2007 Change

Segment PTOI $1,712 $1,579 8%
Significant Items charge included in
PTOI (per Schedule B) - -
Segment PTOI excluding Significant Items $1,712 $1,579 8%

Net Income $1,078 $972 11%
Significant Items charge included in
Net Income (per Schedule B) - -
Net Income excluding Significant Items $1,078 $972 11%

EPS $1.18 $1.04 13%
Significant Items charge included in
EPS (per Schedule B) - -
EPS excluding Significant Items $1.18 $1.04 13%

Average number of diluted shares
outstanding 910,080,000 932,809,000 -2.4%

Six Months Ended
June 30
%
2008 2007 Change

Segment PTOI $3,563 $3,158 13%
Significant Items charge included in
PTOI (per Schedule B) - 52
Segment PTOI excluding Significant Items $3,563 $3,210 11%

Net Income $2,269 $1,917 18%
Significant Items charge included in
Net Income (per Schedule B) - 52
Net Income excluding Significant Items $2,269 $1,969 15%

EPS $2.49 $2.05 21%
Significant Items charge included in
EPS (per Schedule B) - 0.06
EPS excluding Significant Items $2.49 $2.11 18%

Average number of diluted shares
outstanding 908,132,000 933,027,000 -2.7%

Calculation of Segment PTOI as a
Percent of Segment Sales

Three Months Ended
June 30,
%
2008 2007 Change

Segment PTOI excluding Significant Items $1,712 $1,579 8%
Segment sales 8,919 7,949 12%

Segment PTOI as a percent of segment sales 19.2% 19.9%

Six Months Ended
June 30,
%
2008 2007 Change

Segment PTOI excluding Significant Items $3,563 $3,210 11%
Segment sales 17,591 15,880 11%

Segment PTOI as a percent of segment sales 20.3% 20.2%

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 EBIT / EBITDA to Consolidated Income Statement

Three Months Six Months
Ended Ended
June 30, June 30,
2008 2007 2008 2007

Income before income taxes and
minority interests $1,412 $1,308 $2,882 $2,620
Less: Minority interests in (losses)
earnings of consolidated subsidiaries (1) 1 5 3
Add: Interest expense 94 108 174 207
EBIT 1,507 1,415 3,051 2,824
Add: Depreciation and amortization 370 343 750 689
EBITDA $1,877 $1,758 $3,801 $3,513

Reconciliations of Fixed Costs as a Percent of Sales

Three Months Six Months
Ended Ended
June 30, June 30,
2008 2007 2008 2007

Total charges and expenses
- consolidated income statements $7,867 $6,931 $15,167 $13,780
Remove:
Interest expense (94) (108) (174) (207)
Variable costs (1) (4,542) (3,781) (8,682) (7,524)
Significant Items - charge (2) - - - (52)
Fixed costs $3,231 $3,042 $6,311 $5,997

Consolidated net sales $8,837 $7,875 $17,412 $15,720

Fixed costs as a percent of
consolidated net sales 36.6% 38.6% 36.2% 38.1%

(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.

Reconciliation of Earnings Per Share (EPS) Outlook

Six Months Ended Year Ended
December 31, December 31,
2008 2007 2008 2007
Outlook Actual Outlook Actual

Earnings per share -
excluding Significant
Items $.96 to $1.06 $1.16 $3.45 to $3.55 $3.28
Significant Items
included in EPS:
Impairment charge -
Performance Materials - (0.15) - (0.15)
Litigation related
charges - Other - (0.03) - (0.03)
Litigation related
charges, net -
Performance Materials - 0.05 - (0.01)
Corporate tax-related
items - 0.13 - 0.13
Net charge for Significant
Items - - - (0.06)
Reported EPS $.96 to $1.06 $1.16 $3.45 to $3.55 $3.22

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 pretax 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 Six Months Ended
June 30, June 30,
2008 2007 2008 2007
Subsidiary/Affiliate Monetary
Position (Gain)/Loss
Pretax exchange (gains)/losses
(includes equity affiliates) $(58) $(32) $(209) $(58)
Local tax expenses/(benefits) 38 23 4 32
Net after-tax impact from
subsidiary exchange (gains)/losses $(20) $(9) $(205) $(26)

Hedging Program (Gain)/Loss
Pretax exchange (gains)/losses $87 $24 $393 $78
Tax (benefits)/expenses (30) (8) (137) (27)
Net after-tax impact from hedging
program exchange (gains)/losses $57 $16 $256 $51

Total Exchange (Gain)/Loss
Pretax exchange (gains)/losses $29 $(8) $184 $20
Tax expenses/(benefits) 8 15 (133) 5
Net after-tax exchange
(gains)/losses $37 $7 $51 $25

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 Six Months Ended
June 30, June 30,
2008 2007 2008 2007

Income before income taxes and
minority interests $1,412 $1,308 $2,882 $2,620
Add: Significant Items - charge - - - 52
Net exchange losses 29 (8) 184 20
Income before income taxes,
Significant Items, exchange
gains/losses and minority
interests $1,441 $1,300 $3,066 $2,692

Provision for income taxes $335 $335 $608 $700
Add: Tax benefit on Significant Items - - - -
Tax benefit on exchange
gains/losses (8) (15) 133 (5)
Provision for income taxes,
excluding taxes on Significant
Items and exchange gains/losses $327 $320 $741 $695

Effective income tax rate 23.7% 25.6% 21.1% 26.7%
Significant Items effect 0.0% 0.0% 0.0% (0.5)%
Tax rate before significant items 23.7% 25.6% 21.1% 26.2%
Exchange gains/losses effect (1.0)% (1.0)% 3.1% (0.4)%
Base income tax rate 22.7% 24.6% 24.2% 25.8%

SOURCE DuPont

Anthony Farina of DuPont, +1-302-774-4005, anthony.r.farina@usa.dupont.com