DuPont Investor Meeting Addresses Progress Toward Sustainable Growth
WILMINGTON, Del., March 25, 2003 — At a briefing here today for securities analysts and investors, DuPont Chairman and Chief Executive Officer Charles O. Holliday, Jr. and other senior leaders reviewed the company's progress toward sustainable growth. Presentations focused on key drivers that enabled the company to outperform its competition in 2002 and have positioned DuPont for continued success in 2003 and beyond.
The meeting was broadcast live on the Internet at DuPont's website www.dupont.com. Audio and video replays of the meeting with supporting charts will be archived and accessible for future reference in the Investor Center on the DuPont website.
Holliday discussed the critical steps DuPont has taken to operate the company's businesses for sustainable growth and continue to build shareholder value in the face of difficult and challenging times.
The company is committed to providing, on a normalized basis:
Holliday also noted the company's commitment to paying a dividend to its shareholders and maintaining financial rigor without compromising future growth.
"Today we are operating against significant uncertainties, and our businesses are focused on managing what they can control. Regardless of the environment, our commitment to ourselves and shareholders is to beat the competition," Holliday said. "DuPont is positioned for sustainable growth in markets that have both large, unmet needs and the ability to pay for our unique technology and innovation."
Strategic Direction – In 2002, DuPont aligned and strengthened the company's portfolio for growth by creating five market- and technology-based growth platforms that are focused on four growth arenas – electronics; biotechnology; materials science; and safety and protection.
DuPont continues to pursue its sustainable growth mission along three strategic pathways:
Redirecting Research for Growth – DuPont Senior Vice President & Chief Science and Technology Officer Thomas M. Connelly addressed the key initiatives in DuPont research and development that are now generating growth for the company and leading to new technologies and products for future growth. For example, Connelly has redirected a higher percentage of resources within the company's broad research and development platforms toward programs that will help achieve growth objectives. DuPont is on track to achieve its 2005 objective of one-third of its revenue coming from new products introduced within five years. In 2002, 28 percent of revenue came from new products.
"In 2000 when we began the revitalization efforts, 40 percent of research and development resources and assets were dedicated to growth while the balance was allocated to support existing operations," Connelly said. "In 2003, 55 percent of research is dedicated to growth. By 2005, we expect that 65 percent of the company's research will be focused on growth."
"Under the current research and development management system, DuPont is focusing its research and development resources on the top 75 high-potential projects that promote and support our business growth objectives," Connelly added. "Each of these priority programs is resourced for success and is managed against rigorous milestones."
Research projects pass through rigorous selection and execution criteria that include determinations on market relevance, technology uniqueness and commercial feasibility. Under Connelly's leadership, research initiatives are intensely focused on meeting the needs of DuPont's markets and customers.
Financial Strength – DuPont Senior Vice President and Chief Financial Officer Gary M. Pfeiffer addressed the company's financial strength as a key asset in supporting growth.
DuPont has a strong financial position due to a concerted effort to develop and sustain solid businesses with strong cash flow, as well as maintain disciplined use of that cash. This includes strategically allocating capital expenditures; tightly controlling working capital; investing for growth organically or via financially compelling "bolt-on" acquisitions; and returning excess cash to shareholders via dividends and/or share repurchases.
"The balance sheet strength DuPont enjoys today is a direct result of the company's commitment to financial discipline," Pfeiffer said. "That strength positions us to promote the growth objectives of the company and our financial discipline ensures that we continue to create shareholder value."
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.
# # #
3/25/03