OK
The Universal Selection Source:
Coatings Ingredients
Industry News

DuPont Reports Second Quarter 2004 Earnings

Published on 2004-07-28. Author : SpecialChem

 

WILMINGTON, Del. -- DuPont reported second quarter 2004 earnings. Highlights are below:

  • Segment sales were $8.2 billion, increasing 9 percent excluding the impact of portfolio changes, principally the INVISTA divestiture.
  • Second quarter net income was $503 million or $.50 per share compared with the second quarter 2003 earnings of $675 million or $.67 per share.
  • Before special items, second quarter 2004 earnings per share were $.80, modestly exceeding the company's second quarter outlook.
  • Second quarter 2004 earnings per share before special items grew 29 percent versus prior year, reflecting significant improvement in Agriculture & Nutrition, Electronic & Communication Technologies, Performance Materials, and Pharmaceuticals.

"For the second consecutive quarter, the five DuPont growth platforms delivered strong growth in revenue, earnings, and cash despite high energy and raw material prices," said Charles O. Holliday, Jr., DuPont chairman and chief executive officer. "During the second quarter, we also completed the sale of our Textiles & Interiors business and executed the major phase of our previously announced $900 million cost improvement program. I am proud of the results that our people have delivered on all fronts."

Global Consolidated Net Sales and Net Income

Consolidated net sales totaled $7.5 billion compared to $7.4 billion in second quarter 2003, up 2 percent. The benefit to sales from 4 percent higher U.S. dollar selling prices and 6 percent higher sales volume offset a substantial sales reduction resulting from portfolio changes (the INVISTA divestiture, net of the consolidation of DuPont Dow Elastomers). Second quarter net income was $503 million, or $.50 per share, compared to $675 million, or $.67 per share, in the second quarter of 2003. The decrease in income principally reflects current period restructuring costs, partly offset by increases in operating income. Operating income improvement was principally due to higher sales volumes and selling prices, as well as increased Pharmaceuticals earnings. Special items totaled an after-tax charge of $302 million, or $.30 per share in the second quarter 2004 versus a net after-tax benefit of $52 million, or $.05 per share, last year, as summarized in Schedule B and further detailed in the notes to the financial statements. Net income before special items was $805 million, up 29 percent. This compares to $623 million in the second quarter 2003.

Business Segment Performance Segment sales, which include transfers and a pro rata share of equity affiliates, were $8.2 billion in the second quarter, down 1 percent versus prior year.

Segment pretax operating income (PTOI) grew 23 percent before special items, which are summarized in Schedule B. This growth reflects a strong Northern Hemisphere agricultural season, significant growth in Asia, and continued strong demand from U.S. manufacturing and construction markets. These benefits were partly offset by higher raw material costs. The Pharmaceutical segment grew earnings substantially versus a depressed prior year result. Detailed information on segment performance is provided in schedules C, D, and E which show sales variance analyses, segment PTOI as reported, and segment PTOI excluding the impact of special items. The company encourages investors to review these schedules. Additional segment information is available in the earnings data section of the DuPont Investor Center on dupont.com.

Other Items

The company closed the sale of INVISTA on April 30. After-tax proceeds from the sale were $4.1 billion, including debt assumed by the buyer of roundly $270 million.

Outlook

The company has increased its full year earnings per share outlook. The previous outlook was $2.10 to $2.30 per share. The updated full year outlook is $2.25 to $2.35 per share, with third quarter accounting for roughly 40 percent of the second half earnings. (Both outlooks exclude first and second quarter special items referenced above and discussed in the notes to Schedule A.) This outlook assumes that industrial production growth rates will continue to be strong, though somewhat moderated from the rates experienced in the first half of 2004; oil and natural gas prices will remain at or slightly below their currently high levels; and currency will continue to provide a modest benefit. "Across our company, the people of DuPont are focused on meeting our growth objectives. We are putting our science to work to serve our customers, and we are continuously improving our productivity," said Holliday. "Our financial outlook reflects our confidence in the success of these actions."

Source: DuPont


FEICA 2018 European Adhesive and Sealant Conference and EXPO
Channel Alerts

Receive weekly digests on hot topics

Back to Top