- Company Reports $.45 Earnings Per Share
Highlights:
- DuPont’s third quarter 2009 earnings were $.45 per share, compared to third quarter 2008 earnings of $.40 per share which included a $.16 per share hurricane-related significant item charge (see Schedule B.)
- Total company sales for third quarter 2009 were $6.0 billion, with sales in emerging markets rebounding from significantly lower levels in the first and second quarters. Pricing discipline contributed to segment pre-tax margins returning to prior year levels.
- Companywide fixed cost reduction and productivity actions boosted third quarter pre-tax earnings by about $300 million. This brings year-to-date program cost reductions to
$900 million versus the company’s full-year goal of $1 billion.
- Raw material, energy and freight costs adjusted for currency and volume were 12 percent lower versus 2008. The company expects these costs for the full year will be about 5 to 6 percent lower than 2008.
- The company revised its full year 2009 earnings outlook to a range of $1.95 to $2.05 per share, excluding significant items. This reflects a narrowing toward the upper end of the company’s previous range of $1.70 to $2.10 per share. The full-year free cash flow outlook remains
$2.5 billion.
“We delivered on our commitment to shareholders, while navigating through some very difficult business conditions,” said DuPont CEO Ellen Kullman. “We see overall sequential improvement in our industrial businesses as market conditions begin to firm. With a more streamlined organization, permanent fixed cost reductions, and increased productivity, DuPont is well-positioned to capitalize as markets improve. We will continue to leverage our market-driven science across the company to deliver products customers want around the world. We are focused on growth and our rigorous operational discipline in order to deliver continued earnings improvement.”
Net Income and Global Consolidated SalesNet income attributable to DuPont for the third quarter 2009 was $409 million versus $367 million in the prior year. The prior year included a $146 million after-tax hurricane-related charge.
Net income reflects the benefit of significantly lower costs, partly offset by lower sales volume. Third quarter 2009 consolidated net sales of $6.0 billion were 18 percent lower than prior year, reflecting 12 percent lower volume, 2 percent lower local prices, a 3 percent negative impact from currency exchange rates and a net 1 percent reduction due to portfolio changes. While year-over-year volume declines have slowed, lower sales volume continued to reflect generally weaker economic conditions than prior year.
Outlook DuPont revised its full-year 2009 earnings outlook to a range of $1.95 to $2.05 per share, excluding significant items. The full-year free cash flow target remains $2.5 billion. The outlook anticipates improving demand across key markets. The company expects lower raw material costs and currency exchange rates will be a benefit to earnings in the fourth quarter versus the prior year. Aggressive actions to reduce costs and capital expenditures will continue as the company maintains an appropriate level of investment for high-growth, high-margin businesses including seed products and photovoltaics.
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.
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