DuPont News, October 20, 2009
DuPont Delivers Strong 3Q Results
Today DuPont announced strong results for the third quarter 2009. DuPont’s third quarter earnings were $0.45 per share compared to third quarter 2008 earnings of $.40 per share which included a $.16 per share hurricane-related significant item charge.
“We delivered on our commitment to shareholders, while navigating through some very difficult business conditions,” said DuPont CEO Ellen Kullman. “We see overall sequential improvement in our industrial businesses as market conditions begin to firm. With a more streamlined organization, permanent fixed cost reductions and increased productivity, DuPont is well-positioned to capitalize as markets improve.
“We will continue to leverage our market-driven science across the company to deliver products customers want around the world,” Ellen said. “We are focused on growth and our rigorous operational discipline in order to deliver continued earnings improvement.”
The table below shows year-over-year earnings per share (EPS) variances for the third quarter. Earnings principally reflect lower variable and fixed costs, lower sales volume and the impact of the stronger dollar. Capacity utilization has significantly improved versus prior quarters this year.
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EPS ANALYSIS
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3Q
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EPS - 2008
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$.40
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Significant items (Schedule B)
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(.16)
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EPS - 2008 Excluding Significant items
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$.56
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Local prices
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(.14)
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Variable costs*
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.44
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Volume
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(.32)
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Low Capacity Utilization**
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(.03)
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Fixed costs *
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.04
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Currency
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(.06)
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Other***
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(.02)
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Tax
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(.02)
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EPS – 2009
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$.45
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*Excluding volume & currency impact.
**Fixed manufacturing cost, normally reflected in inventory, expensed as a result of low production volumes.
***Includes net interest (.02), lower net exchange loss .03, and other income (.03).
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