E






SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549


FORM 8-K


CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934


Date of Report (Date of Earliest Event Reported) April 27, 2004


E. I. du Pont de Nemours and Company
(Exact Name of Registrant as Specified in Its Charter)


Delaware

1-815

51-0014090

(State or Other Jurisdiction

(Commission

(I.R.S. Employer

Of Incorporation)

File Number)

Identification No.)


1007 Market Street
Wilmington, Delaware 19898
(Address of principal executive offices)


Registrant's telephone number, including area code: (302) 774-1000










1

 



Item 7.     Financial Statements and Exhibits

(c)

Exhibits - The following exhibit is furnished pursuant to the disclosure included under Item 12 of this Form 8-K

 

99

Copy of the Registrant's Earnings News Release dated April 27, 2004.

Item 12.     Results of Operations and Financial Condition

                  On April 27, 2004, the Registrant announced its consolidated financial results for the quarter ended March 31, 2004. A copy of the Registrant's earnings news release is furnished as Exhibit 99 to this report on Form 8-K. The information contained in Item 12 of this report on Form 8-K, including Exhibit 99, shall not be deemed "filed" for purposes of Section 18 of the Exchange Act, or otherwise subject to the liability of that section, nor incorporated by reference in any registration statement filed by the Registrant under the Securities Act of 1933, as amended.





































2

 






SIGNATURE



          Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


E. I. DU PONT DE NEMOURS AND COMPANY

(Registrant)

 
 

/s/ D. B. Smith

D. B. Smith

Vice President and Controller


April 27, 2004




























3

 

EXHIBIT 99

 

 

 

 

 

April 27, 2004

Contact:

Clif Webb

WILMINGTON, Del.

 

302-774-4005

   

r-clifton.webb@usa.dupont.com


DUPONT REPORTS FIRST QUARTER
2004 EARNINGS



Summary

  • Segment pretax operating income before special items rose 35 percent on 15 percent higher sales.
  • Sales volume grew 7 percent, reflecting strength in all operating segments and regions.
  • Local currency prices were up 1 percent.
  • Higher raw material costs were essentially offset by the benefit of a weaker U.S. dollar.

Earnings Comparisons
($ per share diluted)

 

1Q'04

1Q'03

Reported Net Income

.66

.53

Cumulative Effect of a Change in Accounting Principle

-

(.03)

Special Items*

(.30)

(.05)

Earnings Before Special Items

.96

.61

*

Individual items are listed in Schedule B.









4

 



          "We are off to an excellent start in 2004," said Charles O. Holliday, Jr., DuPont chairman and chief executive officer. "Each of the five DuPont growth platforms delivered strong results, exceeding our earnings expectations across all businesses and regions."
Global Consolidated Net Sales and Net Income
          Consolidated net sales totaled $8.1 billion compared to $7.0 billion in first quarter 2003, up 15 percent, reflecting stronger sales volume and higher U.S. dollar selling prices.
          First quarter net income was $668 million, compared to $535 million in the first quarter of 2003. The increase in income principally reflects the benefit of higher sales volumes, higher U.S. dollar prices, a lower income tax rate, and the absence of depreciation on INVISTAÔ assets held for sale, partly offset by increases in raw material costs and charges for special items described in the notes accompanying the financial statements. Special items totaled an after-tax charge of $296 million, or $.30 per share, versus a net after-tax charge of $51 million, or $.05 per share taken in the first quarter 2003.
First Quarter Segment Sales
          Worldwide and regional segment sales and related variances for the first quarter 2004 compared with the first quarter 2003 are summarized below. Segment sales include transfers and a pro rata share of equity affiliate sales.

 

Segment Sales

% Change Due To


1Q'04
$B

% Change
vs. 1Q'03

Local
Price

Currency
Effect


Volume


Other*

Worldwide

8.9

15

1

6

7

1

United States

3.9

8

1

0

6

1

Europe

2.7

20

(2)

16

5

1

Asia Pacific

1.5

20

1

5

14

0

Canada & Latin

           

America

0.8

22

5

4

7

6

*

Impact for the acquisition of the remaining interest in Fibra and the formation of The Solae Company.









5

 



Business Segment Performance
          Detailed information on segment performance is provided in schedules C, D, and E which show revenue variance analyses, segment pretax operating income (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.
          All operating segments delivered double-digit revenue growth in the quarter versus last year and, in total, increased sales by $1.2 billion or 15 percent. This growth reflects robust volume growth in all operating segments, with a notable 17 percent volume growth in Electronic & Communications Technologies. The company's businesses continued to show strong growth across Asia, with 14 percent volume growth broadly supported across the Asia-Pacific region. Agriculture & Nutrition delivered significant local price improvement, more than offsetting local price declines in INVISTA. Currency benefited both sales and earnings in all operating segments.
          Excluding special items, all operating segments delivered significant growth in earnings versus last year. Of the five growth platforms (the five operating segments other than INVISTA), Electronics & Communications showed the most improvement, almost tripling its pre-tax earnings from a low point last year. The remaining growth platforms grew PTOI by 13 to 34 percent, before special items, reflecting a strong Northern Hemisphere agricultural season and broad based momentum in the manufacturing and construction markets that DuPont serves.
Other Items
          As previously announced, the company anticipates that the sale of INVISTA will close on April 30. The company expects the after-tax proceeds from the sale to be about $4.1 billion, including debt assumed by the buyer of roundly $270 million. Proceeds from the sale will be used primarily to reduce debt. The company is also evaluating a potential contribution to its principal U.S. pension plan.



6

 



Outlook
          In the second quarter, the company expects to record a charge of approximately $.17 to $.19 per share in connection with its previously announced cost improvement program. In addition, the company anticipates second quarter charges and credits associated with closing the INVISTA transaction, which cannot be reasonably estimated at this time.
          Excluding these special items, the company expects to deliver earnings per share that are in the range of the recently increased First Call earnings consensus estimate of $0.78 (which excludes the impact of special items). The company reaffirms its previous full year earnings per share outlook of $2.10 to $2.30 (excluding the first and second quarter special items discussed above).
          "Our first quarter results reinforce the strong future we see for our company, our customers and our shareholders," Holliday said. "Each day we are strengthening our ability to create and seize opportunities around the world."
          "With the anticipated closing of the sale of INVISTA just days ahead, we thank all of those who contributed to the 80-year heritage of our textile fiber businesses, creating brands and products that are today synonymous with the textile industry. I wish the people of INVISTA a bright and successful future."
Use of Non-GAAP Measures
          Management believes that earnings before special items, a "non-GAAP" measure, is meaningful to investors because it provides insight with respect to ongoing operating results of the company. Special items represent significant charges or credits that are important to an understanding of the company's ongoing operations. 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. A reconciliation of non-GAAP measures to GAAP is provided in Schedule G.





7

 



          DuPont is a science company. Founded in 1802, DuPont puts science to work by solving problems and creating solutions that make people's lives better, safer and easier. Operating in more than 70 countries, the company offers a wide range of products and services to markets including agriculture, nutrition, electronics, communications, safety and protection, home and construction, transportation and apparel.

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; and seasonality of sales of agricultural products.

# # #

4/27/03




















8

 



E. I. DU PONT DE NEMOURS AND COMPANY AND CONSOLIDATED SUBSIDIARIES

SCHEDULE A

 

Three Months Ended

CONSOLIDATED INCOME STATEMENT

March 31

(Dollars in millions, except per share)

2004

 

2003

 
         

NET SALES

$8,073

 

$7,008

 

Other Income(a)

132

 

178

 
         

Total

8,205

 

7,186

 
         

Cost of Goods Sold and Other Operating Charges(b)

5,757

 

5,168

 

Selling, General and Administrative Expenses

820

 

746

 

Amortization of Intangible Assets

54

 

56

 

Research and Development Expense

337

 

315

 

Interest Expense

85

 

81

 

Separation Charges - Textiles & Interiors(c)

345

 

-

 
         

Total

7,398

 

6,366

 
         

INCOME BEFORE INCOME TAXES AND

       

MINORITY INTERESTS

807

 

820

 

Provision for Income Taxes(d)

126

 

231

 

Minority Interests in Earnings of Consolidated Subsidiaries

13

 

25

 
         

INCOME BEFORE CUMULATIVE EFFECT OF A CHANGE

       

IN ACCOUNTING PRINCIPLE

668

 

564

 

Cumulative Effect of a Change in Accounting Principle,

       

Net of Income Taxes(e)

-

 

(29)

 
         

NET INCOME

668

 

$ 535

 
         

BASIC EARNINGS (LOSS) PER SHARE OF

       

COMMON STOCK(f)

       

Income before Cumulative Effect of a Change in

       

Accounting Principle

$ .67

 

$ .56

 

Cumulative Effect of a Change in Accounting Principle

-

 

(.03)

         

Net Income

$ .67

 

$ .53

 
         

DILUTED EARNINGS (LOSS) PER SHARE OF

       

COMMON STOCK(f)

       

Income before Cumulative Effect of a Change in

       

Accounting Principle

$ .66

 

$ .56

 

Cumulative Effect of a Change in Accounting Principle

-

 

(.03)

 
         

Net Income

$ .66

 

$ .53

 
         

DIVIDENDS PER SHARE OF COMMON STOCK

$ .35

 

$ .35

 





9

 




FOOTNOTES TO CONSOLIDATED INCOME STATEMENT

(a)

First quarter 2004 includes a charge of $150 to provide for the company's share of anticipated losses associated with DuPont Dow Elastomers LLC antitrust litigation matters.

   

(b)

First quarter 2004 includes a charge of $36 to provide for the anticipated settlement of litigation in Refinish. First quarter 2003 includes a charge of $78 to provide for settlement of the 1995 BenlateÒ shareholder litigation case.

   

(c)

First quarter 2004 reflects an additional INVISTA-related charge of $345 which includes an agreed upon reduction in sales price of $240, and other changes in estimates associated with the sale.

   

(d)

First quarter 2004 includes tax benefits of $210 related to the anticipated separation of INVISTA.

   

(e)

The company's adoption of SFAS No. 143, "Accounting for Asset Retirement Obligations," resulted in a cumulative effect adjustment to income of $29 effective January 1, 2003.

   

(f)

Earnings per share are calculated on the basis of the following average number of common shares outstanding:

   

Three Months Ended

   

March 31

   

Basic

 

Diluted

         

2004

 

999,242,763

 

1,003,401,021

2003

 

995,752,067

 

998,192,276






























10

 





E. I. DU PONT DE NEMOURS AND COMPANY AND CONSOLIDATED SUBSIDIARIES

SCHEDULE B

SPECIAL ITEMS
(Dollars in millions, except per share)

   

Pretax

 

After-Tax

 

($ Per Share)

   

2004

 

2003

 

2004

 

2003

 

2004

 

2003

                         

1st Quarter:

                       

INVISTA Separation Charges

 

$(345)

     

$(135)

     

$(.14)

   
                         

DuPont Dow Elastomers LLC

                       

Litigation Reserve

 

(150)

     

(138)

     

(.14)

   
                         

Refinish Litigation Settlement

 

(36)

     

(23)

     

(.02)

   
                         

BenlateÒ Litigation Settlement

     

$(78)

     

$(51)

     

$(.05)

                         

1st Quarter Total

 

$(531)

 

$(78)

 

$(296)

 

$(51)

 

$(.30)

 

$(.05)

































11

 


E. I. DU PONT DE NEMOURS AND COMPANY AND CONSOLIDATED SUBSIDIARIES

SCHEDULE C

 

Three Months Ended

CONSOLIDATED SEGMENT INFORMATION

March 31

(Dollars in millions)

2004

 

2003

SEGMENT SALES(a)

     

Agriculture & Nutrition

$2,202

 

$1,790

Coatings & Color Technologies

1,417

 

1,269

Electronic & Communication Technologies

816

 

677

Performance Materials

1,519

 

1,336

Safety & Protection

1,088

 

985

Textiles & Interiors

1,883

 

1,717

Other

12

 

3

Total Segment Sales

8,937

 

7,777

Elimination of Transfers

(251)

 

(219)

Elimination of Equity Affiliate Sales

(613)

 

(550)

CONSOLIDATED NET SALES

$8,073

 

$7,008

PRE-TAX OPERATING INCOME (LOSS) (PTOI)

     

Agriculture & Nutrition

$ 630

 

$ 518

Coatings & Color Technologies(b)

153

 

141

Electronic & Communication Technologies

92

 

32

Performance Materials(c)

5

 

133

Pharmaceuticals

148

 

153

Safety & Protection

232

 

206

Textiles & Interiors(d)

(195)

 

5

Other(e)

(32)

 

(106)

Total Segment PTOI

1,033

 

1,082

Exchange Gains and Losses

(13)

 

(50)

Corporate Expenses & Interest

(213)

 

(212)

INCOME BEFORE INCOME TAXES AND MINORITY

INTERESTS

$ 807

$ 820

 

(a)

Includes transfers and pro rata share of equity affiliate sales.

   

(b)

First quarter 2004 includes a charge of $36 to provide for the anticipated settlement of litigation in Refinish.

   

(c)

First quarter 2004 includes a charge of $150 to provide for the company's share of anticipated losses associated with the DuPont Dow Elastomers LLC antitrust litigation matters.

   

(d)

First quarter 2004 reflects an additional INVISTA-related charge of $345 which includes an agreed upon reduction in sales price of $240, and other changes in estimates associated with the sale.

   

(e)

First quarter 2003 includes a charge of $78 to provide for settlement of the 1995 BenlateÒ shareholder litigation case.



12

 

 

E. I. DU PONT DE NEMOURS AND COMPANY AND CONSOLIDATED SUBSIDIARIES

SCHEDULE D

SEGMENT SALES(a)

1st QUARTER 2004 VS. 1st QUARTER 2003
(Dollars in millions)

   

Three Months Ended

 

Percentage Change Due to

   

March 31

 

U.S.$

       
   

$

 

% Chg.

 

Price

 

Volume

 

Other(b)

Agriculture & Nutrition

 

$2,202

 

23%

 

11%

 

6%

 

6%

Coatings & Color Technologies

 

1,417

 

12

 

8

 

4

 

-

Electronic & Communication Technologies

 

816

 

21

 

4

 

17

 

-

Performance Materials

 

1,519

 

14

 

6

 

8

 

-

Safety & Protection

 

1,088

 

10

 

5

 

5

 

-

Textiles & Interiors

 

1,883

 

10

 

2

 

7

 

1

Other

 

12

 

N/M

 

-

 

N/M

 

-

Total

$8,937

15%

7%

7%

1%

(a)

Includes transfers and pro rata share of equity affiliate sales.

(b)

Includes impacts from the acquisition of the remaining interest in Fibra, and the formation of The Solae Company.

 

SCHEDULE E

SEGMENT INFORMATION EXCLUDING IMPACT OF SPECIAL ITEMS
(Dollars in millions)

   

Three Months Ended

   

March 31

   

2004

 

2003

 

% Chg.

PRE-TAX OPERATING INCOME

           

Agriculture & Nutrition

 

$ 630

 

$ 518

 

22%

Coatings & Color Technologies

 

189

 

141

 

34

Electronic & Communication Technologies

 

92

 

32

 

188

Performance Materials

 

155

 

133

 

17

Pharmaceuticals

 

148

 

153

 

(3)

Safety & Protection

 

232

 

206

 

13

Textiles & Interiors

 

150

 

5

 

N/M

Other

 

(32)

 

(28)

 

N/M

Total Segment PTOI

 

1,564

 

$1,160

 

35

Exchange Gains and Losses

 

(13)

 

(50)

   

Corporate Expenses & Interest

 

(213)

 

(212)

   

INCOME BEFORE SPECIAL ITEMS,

           

INCOME TAXES AND MINORITY

           

INTERESTS

 

1,338

 

898

 

49

Special Items

 

(531)

 

(78)

   

INCOME BEFORE INCOME TAXES AND

           

MINORITY INTERESTS

 

$ 807

 

$ 820

 

(2)%



13

 



E. I. DU PONT DE NEMOURS AND COMPANY AND CONSOLIDATED SUBSIDIARIES

SCHEDULE F

FINANCIAL SUMMARY
(Dollars in millions, except per share)

   

1st Quarter 2004 Vs.

   

1st Quarter 2003

     

Variance Analysis: Income Before Cumulative

   

Effect of a Change in Accounting Principle

   

Local Prices

 

$ 35

Volume

 

130

Variable Costs

 

(110)

Fixed Costs

 

85

Currency

 

110

Tax Rate

 

85

Other

 

14

     

Total Before Special Items

 

349

     

Special Items

 

(245)

     

Total

 

$ 104


   

Three Months Ended

   

March 31

   

2004

 

2003

 

% Chg.

Selected Income Statement Data -

           

Excluding Impact of Special Items

           

And Cumulative Effect of a Change

           

In Accounting Principle

           
             

Consolidated Net Sales

 

$8,073

 

$7,008

 

15%

Segment Sales

 

8,937

 

7,777

 

15

Segment PTOI*

 

1,564

 

1,160

 

35

EBIT*

 

1,401

 

947

 

48

EBITDA*

 

1,711

 

1,317

 

30

Income Before Income Taxes and

           

Minority Interests

 

1,338

 

898

 

49

EPS - Diluted

 

0.96

 

0.61

 

57

*

See Reconciliation of Non-GAAP Measures (Schedule G).










14

 

E. I. DU PONT DE NEMOURS AND COMPANY AND CONSOLIDATED SUBSIDIARIES

SCHEDULE G

RECONCILIATION OF NON-GAAP MEASURES
(Dollars in millions)

Reconciliation of Segment PTOI

   

Three Months Ended

   

March 31

   

2004

 

2003

Segment PTOI Excluding Special Items

 

$1,564

 

$1,160

Special Items included in Segment PTOI

 

(531)

 

(78)

Segment PTOI

 

$1,033

 

$1,082

Reconciliation of EBIT / EBITDA to Consolidated Income Statement

   

Three Months Ended

   

March 31

   

2004

 

2003

Income Before Income Taxes and Minority Interests

 

$ 807

 

$ 820

Less: Minority Interest in Earnings of Consolidated

       

Subsidiaries(1)

 

(11)

 

(22)

Add: Net Interest Expense(2)

 

74

 

71

Special Items

 

531

 

78

EBIT

 

1,401

 

947

Add: Depreciation and Amortization(3)

 

310

 

370

EBITDA

 

$1,711

 

$1,317

(1)

Excludes income taxes and corporate minority interests.

(2)

Includes interest expense plus amortization of capitalized interest less interest income.

(3)

Excludes amortization of capitalized interest.

Reconciliation of Base Income Tax Rate To Effective Income Tax Rate

   

Three Months Ended

   

March 31

   

2004

 

2003

Income Before Income Taxes and Minority Interests

 

$ 807

 

$820

Charges for Special Items

 

531

 

78

Exchange Losses

 

13

 

50

Income Before Income Taxes, Special Items, Exchange

       

Losses and Minority Interests

 

$1,351

 

$948

Provision for Income Taxes

 

$ 126

 

$231

Tax Impact of Special Items

 

235

 

27

Tax Impact of Exchange Gains and Losses

 

(19)

 

36

Provision for Income Taxes, Excluding Special Items and

       

Exchange Losses

 

$ 342

 

$294

Base Income Tax Rate

 

25.3%

 

31.0%

Effective Income Tax Rate

 

15.6%

 

28.1%


15