DuPont Reports 4Q 2013 Operating EPS of $.59
WILMINGTON, Del., Jan. 28, 2014 – DuPont today announced fourth quarter 2013 operating earnings of $.59 per share compared to $.20 per share in the prior year. GAAP1 earnings from continuing operations were $183 million or $.19 per share, versus $4 million or zero per share last year. Fourth quarter results reflect strong volume growth, improved operating margins and a lower base tax rate compared to the prior year.
The company said that it expects full-year 2014 operating earnings of $4.20 to $4.45 per share, up 8 to 15 percent versus 2013. DuPont separately announced that its Board of Directors authorized a new $5 billion share repurchase program, with $2 billion expected to occur in 2014.
“Our strong fourth quarter results reflect successful execution across the company against the backdrop of a gradually improving global economy,” said DuPont Chair and CEO Ellen Kullman. “For the year, we delivered double-digit operating earnings growth and higher margins, aside from the substantial decline in Performance Chemicals. The improvement was driven by higher volumes, new innovative products and productivity gains.”
“Our 2013 results and strategic actions demonstrate we are advancing our plan to build a higher growth, higher value DuPont and reinforce our decision to separate Performance Chemicals into a strong, independent company,” Kullman said. “Our $5 billion share repurchase program reflects ongoing confidence in our plan to continue increasing the value of DuPont for shareholders in 2014 and beyond.”
Fourth Quarter Highlights
- Company sales increased 6 percent to $7.7 billion, with 9 percent volume growth reflecting increased demand across all segments and regions.
- Segment operating earnings of $939 million increased 52 percent versus $616 million last year, with operating margin improvement across most segments.
- Agriculture operating earnings were $88 million compared to a seasonal operating loss of $77 million last year, driven by strong insecticide sales in Latin America and earlier seed shipments.
- Electronics & Communications, Safety & Protection and Nutrition & Health recorded operating earnings increases of 116 percent, 57 percent, and 40 percent, respectively.
Full Year Highlights
- 2013 operating earnings were $3.88 per share, up 3 percent from $3.77 per share in the prior year. Sales increased 3 percent to $35.7 billion with 5 percent higher volume. GAAP earnings from continuing operations were $3.04 per share versus $2.59 per share last year.
- Segment operating earnings were $5.9 billion, down from $6.3 billion last year primarily due to a $0.8 billion decline ($.66 per share) in Performance Chemicals. Excluding Performance Chemicals in both years, segment operating earnings increased $490 million, or 11 percent.
- Agriculture operating earnings grew 16 percent on 13 percent higher sales, partially offset by higher seed input costs and negative currency impact. Sales growth was principally driven by higher global seed prices and volumes, increased global insecticide and fungicide volumes, and the benefit of increased ownership in Pannar Seed (Pty) Ltd.
- Free cash flow was $1.3 billion versus $3.1 billion in the prior year, primarily due to the decline in Performance Chemicals earnings, changes in Agriculture working capital, and the absence of Performance Coatings earnings following the 2013 divestiture.
- The unfunded pension and OPEB liability decreased $4.9 billion to $8.4 billion at December 31, 2013.
1Generally Accepted Accounting Principles (GAAP)
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Forward-Looking Statements: This news release contains forward-looking statements which may be identified by their use of words like “plans,” “expects,” “will,” "believes," “intends,” “estimates,” “anticipates” or other words of similar meaning. All statements that address expectations or projections about the future, including statements about the company’s growth strategy, product development, regulatory approval, market position, anticipated benefi ts of acquisitions, outcome of contingencies, such as litigation and environmental matters, expenditures and financial results, are forward-looking statements. Forward-looking statements are not guarantees of future performance and are based on certain assumptions and expectations of future events which may not be realized. Forward-looking statements also involve risks and uncertainties, many of which are beyond the company’s control. Some of the important factors that could cause the company’s actual results to differ materially from those projected in any such forward-looking statements are: fluctuations in energy and raw material prices; failure to develop and market new products and optimally manage product life cycles; significant litigation and environmental matters; failure to appropriately manage process safety and product stewardship issues; changes in laws and regulations or political conditions; global economic and capital markets conditions, such as inflation, interest and currency exchange rates; business or supply disruptions; security threats, such as acts of sabotage, terrorism or war, weather events and natural disasters; ability to protect and enforce the company's intellectual property rights; successful integration of acquired businesses and separation of underperforming or non-strategic assets or businesses and successful completion of the proposed spinoff of the Performance Chemicals segment including ability to fully realize the expected benefits of the proposed spinoff.
The company undertakes no duty to update any forward-looking statements as a result of future developments or new information.
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