3:

 

 






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) January 25, 2005


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 2.02.     Results of Operations and Financial Condition

                  On January 25, 2005, the Registrant announced its consolidated financial results for the quarter and year ended December 31, 2004. A copy of the Registrant's earnings news release is furnished on Form 8-K. The information contained in Item 12 of this report on Form 8-K 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 & Controller


January 25, 2005
























3



January 25, 2005

Contact:

Clif Webb

WILMINGTON, Del.

 

302-774-4005

   

r-clifton.webb@usa.dupont.com


DuPont Reports Fourth Quarter and Full-Year 2004 Earnings


Highlights

  • Fourth quarter 2004 earnings were $.28 per share.
  • Fourth quarter earnings before special items were $.37 per share.
  • Segment sales, excluding the divested Textiles & Interiors businesses, grew 14 percent on 5 percent volume growth and 7 percent higher U.S. dollar selling prices. Local selling price increases more than offset the impact of higher raw material costs.
  • Fourth quarter segment pretax operating income (PTOI), before special items, was $709 million, up 32 percent.
  • Full-year 2004 earnings per share before special items were $2.38, up 43 percent, compared to $1.66 earned last year.

            "The fourth quarter caps a year of improved operating performance by our company, delivering broad-based revenue growth, cost productivity and margin improvement," said Charles O. Holliday, Jr., DuPont chairman and chief executive officer. "We are executing our strategies to put our science to work, to go where the growth is, and to leverage the global capabilities of our company. I am very pleased with the positive momentum our employees are creating for DuPont, our customers and our shareholders."

Earnings Comparisons
($ per share diluted)

   

4Q 2004

 

4Q 2003

 

YR 2004

 

YR 2003

                 

Reported Net Income

 

$ .28

 

$.63

 

$1.77

 

$ .96

Cumulative Effect of a Change

               

in Accounting Principle

 

-

 

-

 

-

 

(.03)

Special Items*

 

(.09)

 

.34

 

(.61)

 

(.67)

                 

Earnings Before Special Items

 

.37

 

.29

 

2.38

 

1.66

*

See Schedules A and B.

 

4

 



Global Consolidated Net Sales and Net Income
            Consolidated net sales for the fourth quarter were $6.0 billion compared to $6.5 billion in the fourth quarter 2003, and $27.3 billion for the full year compared to $27.0 billion in 2003. Net income for the fourth quarter was $278 million or $.28 per share compared to $636 million or $.63 per share in the prior year. Net income for the full year was $1,780 million or $1.77 per share, compared to $973 million or $.96 per share for 2003.
            Fourth quarter net income before special items was $371 million or $.37 per share, up 28 percent. Higher selling prices and volume growth more than offset higher energy and raw material costs. Variances reconciling 2004 fourth quarter earnings per share before special items with fourth quarter 2003 are shown in the table below:

Earnings Per Share (EPS)

     

4th Quarter

 

 

EPS before special items - 2003

 

$ .29

 

 

Variance versus 4th Qtr. 2003 from:

     
 

Local Prices

 

.19

 
 

Volume

 

.06

 
 

Variable Costs

 

(.11)

 
 

Fixed Costs

 

(.05)

 
 

Currency

 

.03

 
 

Tax Rate

 

(.06)

 
 

Portfolio Changes

 

(.04)

 
 

All Other (including Pharmaceuticals)

 

.06

 

 

EPS before special items - 2004

 

$ .37

 

     

4th Quarter

 

 

Reported EPS - 2003

 

$ .63

 

 

Reported EPS - 2004

 

$ .28

 

            For the year 2004, net income before special items was $2.4 billion or $2.38 per share versus $1.7 billion or $1.66 per share in the prior year, up 43 percent. The improvement reflects higher selling prices, volume growth, lower operating costs and favorable currency exchange rates, partly offset by higher energy and raw material costs.


5

 



Business Segment Performance - Segment Sales
            As shown below, Core Segment sales, which exclude the divested Textiles & Interiors businesses and include transfers and a pro rata share of equity affiliate sales were $6.3 billion in the fourth quarter, up 14 percent versus 2003. Sales growth can be attributed largely to 5 percent volume growth and 7 percent higher U.S. dollar prices, which include 4 percent higher local selling prices. Positive pricing momentum for the Core Segments continued throughout the fourth quarter.

   

Three Months Ended

 

Percentage Change Due to

Segment Sales

 

December 31

 

U.S.$

     

Portfolio

(Dollars in billions)

 

$

 

% Chg.

 

Price

 

Volume

 

Changes

                     

Agriculture & Nutrition

 

$1.0

 

1%

 

5

 

(1)

 

(3)

Coatings & Color Technologies

 

1.6

 

10

 

6

 

4

 

-

Electronic & Communication

                   

Technologies

 

0.8

 

7

 

3

 

4

 

-

Performance Materials

 

1.7

 

25

 

10

 

6

 

9*

Safety & Protection

 

1.2

 

22

 

12

 

8

 

2

                     

Total Core Segments

 

$6.3

 

14%

 

7

 

5

 

2

                     

Textiles & Interiors and Other

 

0.3

 

(85)

           
                     

Total Segment Sales

 

$6.6

 

(9)%

           

*

Principally the consolidation of DuPont Dow Elastomers (DDE).

Business Segment Performance - Segment Sales by Region

            Worldwide volume growth was 5 percent with especially strong growth in the emerging markets of China and Eastern Europe. In the United States, volumes were up 1 percent, building on the very strong 6 percent volume growth in the fourth quarter of 2003.









6

 



 

Three Months Ended

 

Percentage Change Due to

Segment Sales

December 31

 

Local

 

Currency

     

Portfolio

(Dollars in billions)

$

 

% Chg.

 

Price

 

Effect

 

Volume

 

Changes*

                       

U.S.

$2.4

 

8

 

6

 

0

 

1

 

1

Europe

1.9

 

17

 

3

 

8

 

4

 

2

Asia Pacific

1.3

 

25

 

3

 

2

 

14

 

6

Canada &

                     

Latin America

0.7

 

10

 

4

 

3

 

2

 

1

                       

Worldwide Core

                     

Segment Sales

$6.3

 

14%

 

4

 

3

 

5

 

2

                       

Textiles & Interiors

                     

and Other

0.3

 

(85)

               
                       

Total Segment Sales

$6.6

 

(9)%

               

*

Includes the consolidation of DDE and the impact of small acquisitions.

Business Segment Performance - PTOI
            Segment PTOI for the quarter was $596 million versus $221 million in the fourth quarter 2003.
            Segment PTOI before special items for the fourth quarter was $709 million, up 32 percent, and $4,205 million for the full year, up 34 percent.



7

 



   

Three Months Ended December 31, 2004

   

Before Special Items

 

Reported

       

% Chg.

     

% Chg.

   

$

 

vs. 2003*

 

$

 

vs. 2003*

PRE-TAX OPERATING INCOME

               

(Dollars in millions)

               
                 

Agriculture & Nutrition

 

$(128)

 

$ 10

 

$(126)

 

$ 10

Coatings & Color Technologies

 

232

 

17%

 

236

 

17%

Electronic & Communication

               

Technologies

 

91

 

42%

 

93

 

41%

Performance Materials

 

143

 

83%

 

26

 

(67)%

Pharmaceuticals

 

186

 

9%

 

186

 

9%

Safety & Protection

 

227

 

13%

 

228

 

13%

Textiles & Interiors

 

(9)

 

$(17)

 

(36)

 

$258

Other

 

(33)

 

$ 9

 

(11)

 

$ 55

                 

Total Segment PTOI

 

$ 709

 

32%

 

$ 596

 

170%

*

Dollar change shown where percentage change is not meaningful.

Outlook
          "With the structural transformation of our company now complete, our number one priority is delivering on our three business strategies which we are confident will create superior value for our customers and our shareholders," said Holliday.
          DuPont expects 2005 earnings per share to be between $2.65 and $2.85 excluding special items. Continued success in executing the company's growth and productivity strategies within its cash discipline principles is expected to improve earnings per share as well as cash flow.
          Key expectations underlying this outlook are:

Revenue growth:




8

 



Productivity improvements:

Global economy:

          The company's agriculture businesses are highly seasonal. Historically, about two-thirds of the company's revenues have been realized in the first half of the calendar year. As a result, the company expects that approximately 70 percent of 2005 earnings per share excluding any special items will be realized within the first half of the year. Based on historic patterns of seasonality, first half earnings per share would be about evenly split between the first and second quarters.
Use of Non-GAAP Measures
          Management believes that measures of earnings before special items ("non-GAAP" information) are meaningful to investors because they provide 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.







9

 



          DuPont is a science 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, nutrition, electronics, communications, safety and protection, home and construction, transportation and protective 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.


# # #

1/25/05



















10

 

 


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

SCHEDULE A

 

Three Months Ended

 

Year Ended

CONSOLIDATED INCOME STATEMENT

December 31,

 

December 31,

(Dollars in millions, except per share)

2004

 

2003

 

2004

 

2003

               

NET SALES

$6,000

 

$6,477

 

$27,340

 

$26,996

Other Income(a)

31

 

191

 

655

 

734

               

Total

6,031

 

6,668

 

27,995

 

27,730

               

Cost of Goods Sold and Other Operating Charges(b)

4,637

 

5,210

 

20,416

 

20,759

Selling, General and Administrative Expenses

812

 

790

 

3,141

 

3,067

Amortization of Intangible Assets

55

 

51

 

223

 

229

Research and Development Expense

355

 

337

 

1,333

 

1,349

Interest Expense

110

 

89

 

362

 

347

Employee Separation Costs and Asset Impairment Charges(c)

(22)

 

(17)

 

411

 

(17)

Separation Charges - Textiles & Interiors(d)

37

 

306

 

667

 

1,620

Goodwill Impairment - Textiles & Interiors(e)

-

 

4

 

-

 

295

Gain on Sale of Interest by Subsidiary - Non-operating(f)

-

 

-

 

-

 

(62)

               

Total

5,984

 

6,770

 

26,553

 

27,587

               

INCOME (LOSS) BEFORE INCOME TAXES AND

             

MINORITY INTERESTS

47

 

(102)

 

1,442

 

143

Benefit from Income Taxes(g)

(215)

 

(743)

 

(329)

 

(930)

Minority Interests in Earnings of Consolidated Subsidiaries(b)(h)

(16)

 

5

 

(9)

 

71

               

INCOME BEFORE CUMULATIVE EFFECT OF A CHANGE

             

IN ACCOUNTING PRINCIPLE

278

 

636

 

1,780

 

1,002

Cumulative Effect of a Change in Accounting Principle,

             

Net of Income Taxes(i)

-

 

-

 

-

 

(29)

               

NET INCOME

$ 278

 

$ 636

 

$ 1,780

 

$ 973

               

BASIC EARNINGS PER SHARE OF COMMON STOCK(j)(k)

             

Income before Cumulative Effect of a Change in Accounting Principle

$ .28

 

$ .64

 

$ 1.78

 

$ 1.00

Cumulative Effect of a Change in Accounting Principle

-

 

-

 

-

 

(.03)

               

Net Income

$ .28

 

$ .64

 

$ 1.78

 

$ .97

               

DILUTED EARNINGS PER SHARE OF COMMON STOCK(j)(k)

             

Income before Cumulative Effect of a Change in Accounting Principle

$ .28

 

$ .63

 

$ 1.77

 

$ .99

Cumulative Effect of a Change in Accounting Principle

-

 

-

 

-

 

(.03)

               

Net Income

$ .28

 

$ .63

 

$ 1.77

 

$ .96

               

DIVIDENDS PER SHARE OF COMMON STOCK

$ .35

 

$ .35

 

$ 1.40

 

$ 1.40





11

 


NOTES TO CONSOLIDATED INCOME STATEMENT

(a)

Fourth quarter 2004 includes a benefit of $15 resulting from the reversal of accrued interest related to certain prior year tax contingencies. Total year 2004 also includes an additional benefit of $35 related to prior year tax contingencies, and a charge of $150 in the Performance Materials segment to provide for the company's share of anticipated losses associated with DuPont Dow Elastomers LLC litigation.

   
 

Total year 2003 includes an exchange gain of $30 resulting from a currency contract purchased to offset movement in the Canadian dollar in connection with the company's acquisition of minority shareholders' interest in DuPont Canada, a $23 benefit resulting from a favorable arbitration ruling in the Pharmaceuticals segment, and a benefit of $16 in the Textiles & Interiors segment from the favorable settlement of arbitration related to the Unifi Alliance.

   

(b)

Fourth quarter 2004 includes a charge of $118 in the Performance Materials segment to provide for additional anticipated losses associated with DuPont Dow Elastomers LLC antitrust litigation matters; this charge is partially offset by an $18 liability recorded against Minority Interests in Earnings of Consolidated Subsidiaries to recognize The Dow Chemical Company's share of anticipated losses. Fourth quarter 2004 also includes a benefit of $20 in the Other segment from insurance proceeds related to BenlateÒ litigation. In addition, total year 2004 includes a charge of $108 in the Electronic & Communication Technologies segment associated with the proposed settlement of the PFOA class action litigation in West Virginia, and a charge of $36 in the Coatings & Color Technologies segment to provide for the settlement of litigation in Refinish.

   
 

Fourth quarter 2003 includes a charge of $25 in the Other segment to increase the company's reserve for BenlateÒ litigation. In addition, total year 2003 includes a charge of $78 in the Other segment to provide for settlement of the 1995 BenlateÒ shareholder litigation case, partly offset by $25 in insurance proceeds.

   

(c)

Fourth quarter 2004 includes a benefit of $22 to reflect changes in estimates related to current and prior years' restructuring programs in the following segments: Agriculture & Nutrition - $2; Coatings & Color Technologies - $4; Electronic & Communication Technologies - $2; Performance Materials - $1; Safety & Protection - $1; Textiles & Interiors - $10; and Other - $2.

   
 

Total year 2004 also includes charges of $312 to provide severance benefits for approximately 2,700 employees in the following segments: Agriculture & Nutrition - $36; Coatings & Color Technologies - $64; Electronic & Communication Technologies - $42; Performance Materials - $45; Safety & Protection - $29; and Other - $96. In addition, total year 2004 includes charges of $42 related to the impairment of certain European manufacturing assets in the Safety & Protection segment; $23 related to the shutdown of manufacturing assets at a U.S. facility in the Performance Materials segment; $29 to write off abandoned technology in the Other segment; and $27 to reflect a decline in the value of an investment security in the Electronic & Communication Technologies segment.

   
 

Fourth quarter and total year 2003 include a benefit of $17 resulting from changes in estimates related to prior year restructuring programs in the following segments: Agriculture & Nutrition - $2; Coatings & Color Technologies - $4; Electronic & Communication Technologies - $2; Textiles & Interiors - $8; and Other - $1.

   

(d)

Fourth quarter 2004 includes charges of $37 principally related to the settlement of working capital on the sale of INVISTA to Koch Industries. Total year 2004 also includes an additional charge of $630, consisting of $244 due primarily to an increase in the book value of net assets sold and additional separation costs; $345 related to an agreed upon reduction in sales price and other changes in estimates associated with the sale; and $41 related to the write-down of an equity affiliate to fair market value.

   
 

Fourth quarter 2003 reflects a charge of $306 associated with the expected separation of INVISTA due to changes in estimates associated with the sale, incremental out-of-pocket disposal costs, and the write down to estimated fair market value of a European manufacturing facility. Total year 2003 also includes impairment charges of $1,236 to write down to estimated fair value various manufacturing and other intangible assets held for sale, as well as investments in certain joint ventures. In addition, 2003 includes $78 in charges related to pension curtailment losses associated with the expected separation.

   

 

12

 


NOTES TO CONSOLIDATED INCOME STATEMENT - (CONT'D)

(e)

Fourth quarter 2003 includes a goodwill impairment charge of $4 resulting from finalization of purchase price allocation associated with the company's acquisition of minority shareholders' interest in DuPont Canada. Total year 2003 also reflects a charge of $291 to write off goodwill associated with INVISTA.

   

(f)

Total year 2003 includes a $62 non-operating gain in the Agriculture & Nutrition segment associated with the formation of a majority-owned venture, The Solae Company, with Bunge Limited.

   

(g)

Total year 2004 includes $320 in INVISTA-related tax benefits, a tax benefit of $160 related to certain prior year tax contingencies previously reserved, and a $137 benefit associated with recording an increase in deferred tax assets in two European subsidiaries.

   
 

Fourth quarter 2003 reflects a benefit of $653, primarily associated with recording deferred tax assets in two European subsidiaries for their tax basis investment losses recognized on local tax returns. Total year 2003 also includes tax benefits of $566 related to the anticipated separation of INVISTA.

   

(h)

Total year 2004 reflects a minority interest adjustment related to the consolidation of DuPont Dow Elastomers LLC as a variable interest entity.

   
 

Total year 2003 includes an after-tax charge of $17 for the early extinguishment of the company's Minority Interest structures in preparation for the planned separation of INVISTA.

   

(i)

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

   

(j)

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

 

Three Months Ended

 

Twelve Months Ended

 

December 31

 

December 31

 

Basic

 

Diluted

 

Basic

 

Diluted

               

2004

993,616,121

 

999,509,461

 

997,624,239

 

1,003,392,242

2003

997,451,724

 

1,000,795,660

 

996,717,845

 

1,000,010,193

(k)

Total year earnings per share do not equal the sum of quarterly earnings per share due to changes in average share calculations.



















13

 





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

SCHEDULE B

SPECIAL ITEMS(1)
(Dollars in millions, except per share)

   

Pretax

 

After-Tax

 

($ Per Share)

   

2004

 

2003

 

2004

 

2003

 

2004

 

2003

                         

1st Quarter - Total

 

$ (531)

 

$ (78)

 

$(296)

 

$ (51)

 

$(.30)

 

$ (.05)

                         

2nd Quarter - Total

 

$ (661)

 

$ 108

 

$(302)

 

$ 52

 

$(.30)

 

$ .05

                         

3rd Quarter - Total

 

$ (130)

 

$(1,557)

 

$ 78

 

$(1,008)

 

$ .08

 

$(1.01)

                         

4th Quarter:

                       

DDE-Related Items:

                       

Litigation Reserve

 

$ (118)

     

$(111)

     

$(.11)

   

Minority Interest Adjustment

 

-

     

18

     

.02

   

Total

 

(118)

     

(93)

     

(.09)

   
                         

Textiles & Interiors-Related Items:

                       

Separation Charges

 

$ (37)

 

$ (310)

 

$ (40)

 

$ (326)

 

$(.04)

 

$ (.32)

Deferred Tax Benefits

     

-

     

669

     

.67

Total

 

(37)

 

(310)

 

(40)

 

343

 

(.04)

 

.35

                         

Restructuring - Change in Estimate

 

22

 

17

 

17

 

12

 

.02

 

.01

                         

BenlateÒ Litigation

 

20

 

(25)

 

13

 

(15)

 

.01

 

(.02)

                         

Corporate Tax-Related Item

 

15

   

10

     

.01

   
                         

4th Quarter - Total

 

$ (98)

 

$ (318)

 

$ (93)

 

$ 340

 

$(.09)

 

$ .34

                         

Full Year - Total

 

$(1,420)

 

$(1,845)

 

$(613)

 

$ (667)

 

$(.61)

 

$ (.67)



(1)

See Notes to Consolidated Income Statement on Schedule A for additional details.














14

 



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

SCHEDULE C

 

Three Months Ended

 

Year Ended

CONSOLIDATED SEGMENT INFORMATION(1)

December 31,

 

December 31,

(Dollars in millions)

2004

 

2003

 

2004

 

2003

SEGMENT SALES(2)

             

Agriculture & Nutrition

$ 999

 

$ 991

 

$ 6,247

 

$ 5,470

Coatings & Color Technologies

1,575

 

1,437

 

6,028

 

5,503

Electronic & Communication Technologies

803

 

750

 

3,279

 

2,892

Performance Materials

1,739

 

1,387

 

6,633

 

5,376

Safety & Protection

1,252

 

1,028

 

4,693

 

4,075

Textiles & Interiors

255

 

1,697

 

3,250

 

6,937

Other

7

 

6

 

44

 

15

Total Segment Sales

6,630

 

7,296

 

30,174

 

30,268

Elimination of Transfers

(70)

 

(234)

 

(553)

 

(940)

Elimination of Equity Affiliate Sales

(560)

 

(585)

 

(2,281)

 

(2,332)

CONSOLIDATED NET SALES

$6,000

 

$6,477

 

$27,340

 

$26,996

PRE-TAX OPERATING INCOME

             

     (LOSS) (PTOI)(3)                       

             

Agriculture & Nutrition(c)(f)

$ (126)

 

$ (136)

 

$ 766

 

$ 669

Coatings & Color Technologies(b)(c)

236

 

202

 

718

 

735

Electronic & Communication Technologies(b)(c)

93

 

66

 

192

 

183

Performance Materials(a)(b)(c)

26

 

78

 

295

 

410

Pharmaceuticals(a)

186

 

170

 

681

 

571

Safety & Protection(c)

228

 

201

 

840

 

807

Textiles & Interiors(a)(c)(d)(e)

(36)

 

(294)

 

(515)

 

(1,892)

Other(b)(c)

(11)

 

(66)

 

(242)

 

(220)

Total Segment PTOI

596

 

221

 

2,735

 

1,263

Exchange Gains and Losses(a)

(300)

 

(87)

 

(411)

 

(190)

Corporate Expenses & Interest(a)

(249)

 

(236)

 

(882)

 

(930)

INCOME (LOSS) BEFORE INCOME TAXES

AND MINORITY INTERESTS

$ 47

$ (102)

$ 1,442

$ 143



(1)

Certain reclassifications of segment data have been made to reflect changes in organizational structure.

(2)

Includes transfers and pro rata share of equity affiliate sales.

(3)

See respective Notes to Consolidated Income Statement for segment specific details.










15

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

SCHEDULE D

SEGMENT SALES(1)

4th QUARTER 2004 VS. 4th QUARTER 2003
(Dollars in millions)

   

Three Months Ended

 

Percentage Change Due to

   

December 31

 

U.S.$

       
   

$

 

% Chg.

 

Price

 

Volume

 

Other(2)

Agriculture & Nutrition

 

$ 999

 

1%

 

5%

 

(1)%

 

(3)%

Coatings & Color Technologies

 

1,575

 

10

 

6

 

4

 

-

Electronic & Communication Technologies

 

803

 

7

 

3

 

4

 

-

Performance Materials

 

1,739

 

25

 

10

 

6

 

9

Safety & Protection

 

1,252

 

22

 

12

 

8

 

2

                     

Total Core Segments

 

$6,368

 

14%

 

7%

 

5%

 

2%

                     

Textiles & Interiors(3)

 

$ 255

 

(85)

           

Other

 

7

               

Total Segments

$6,630

(9)%

6%

3%

(18)%

(1)

Includes transfers and pro rata share of equity affiliate sales.

(2)

Includes changes in sales related to the INVISTA divestiture, the impact of fully consolidating DDE beginning in the second quarter 2004, and additional sales from acquisitions.

(3)

Reduction in sales reflects the divestiture of INVISTA on April 30. Sales in the fourth quarter 2003 were $1,697.

 

SCHEDULE E

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

   

Three Months Ended

 

Year Ended

   

December 31

 

December 31

   

2004

 

2003

 

% Chg.

 

2004

 

2003

 

% Chg.

PRE-TAX OPERATING INCOME (LOSS)

                       

Agriculture & Nutrition

 

$(128)

 

$(138)

 

N/M

 

$ 800

 

$ 605

 

32%

Coatings & Color Technologies

 

232

 

198

 

17%

 

814

 

731

 

11

Electronic & Communication

                       

Technologies

 

91

 

64

 

42

 

367

 

181

 

103

Performance Materials

 

143

 

78

 

83

 

630

 

410

 

54

Pharmaceuticals

 

186

 

170

 

9

 

681

 

548

 

24

Safety & Protection

 

227

 

201

 

13

 

910

 

807

 

13

Textiles & Interiors

 

(9)

 

8

 

N/M

 

142

 

(1)

 

N/M

Other

 

(33)

 

(42)

 

N/M

 

(139)

 

(143)

 

N/M

Total Segment PTOI

 

709

 

539

 

32

 

4,205

 

3,138

 

34

Exchange Gains and Losses

 

(300)

 

(87)

     

(411)

 

(220)

   

Corporate Expenses & Interest

 

(264)

 

(236)

     

(932)

 

(930)

   

INCOME BEFORE SPECIAL ITEMS,

                       

INCOME TAXES AND MINORITY

                       

INTERESTS

 

145

 

216

 

(33)

 

2,862

 

1,988

 

44

Special Items

 

(98)

 

(318)

     

(1,420)

 

(1,845)

   

INCOME (LOSS) BEFORE INCOME

                       

TAXES AND MINORITY

                       

INTERESTS

 

$ 47

 

$(102)

 

N/M

 

$ 1,442

 

$ 143

 

908%

 

16

 


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

SCHEDULE F

SELECTED INCOME STATEMENT DATA EXCLUDING IMPACT OF SPECIAL ITEMS AND CUMULATIVE EFFECT OF A CHANGE IN ACCOUNTING PRINCIPLES
(Dollars in millions, except per share)

   

Three Months Ended

 

Year Ended

   

December 31

 

December 31

   

2004

 

2003

 

% Chg.

 

2004

 

2003

 

% Chg.

Consolidated Net Sales

 

$6,000

 

$6,477

 

(7)%

 

$27,340

 

$26,996

 

1%

Segment Sales

 

6,630

 

7,296

 

(9)

 

30,174

 

30,268

 

-

Segment PTOI*

 

709

 

539

 

32

 

4,205

 

3,138

 

34

EBIT*

 

203

 

289

 

(30)

 

3,107

 

2,252

 

38

EBITDA*

 

542

 

650

 

(17)

 

4,420

 

3,783

 

17

Income Before Income Taxes and

 

                   

Minority Interests

 

145

 

216

 

(33)

 

2,862

 

1,988

 

44

EPS - Diluted

 

0.37

 

0.29

 

28

 

2.38

 

1.66

 

43

*

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

 

SCHEDULE G

RECONCILIATION OF NON-GAAP MEASURES
(Dollars in millions)

Reconciliation of Segment PTOI

           
   

Three Months Ended

 

Year Ended

   

December 31,

 

December 31,

   

2004

 

2003

 

2004

 

2003

Segment PTOI Before Special Items

 

$ 709

 

$ 539

 

$ 4,205

 

$ 3,138

Special Items included in Segment PTOI

 

(113)

 

(318)

 

(1,470)

 

(1,875)

Segment PTOI

 

$ 596

 

$ 221

 

$ 2,735

 

$ 1,263

Reconciliation of EBIT / EBITDA to Consolidated Income Statement

   

Three Months Ended

 

Year Ended

   

December 31,

 

December 31,

   

2004

 

2003

 

2004

 

2003

Income (Loss) Before Income Taxes and

               

Minority Interests

 

$ 47

 

$(102)

 

$ 1,442

 

$ 143

Less: Minority Interest in Earnings

               

of Consolidated Subsidiaries(1)

 

(24)

 

(3)

 

(36)

 

(43)

Add: Net Interest Expense(2)

 

82

 

76

 

281

 

307

Special Items

 

98

 

318

 

1,420

 

1,845

EBIT

 

203

 

289

 

3,107

 

2,252

Add: Depreciation and Amortization(3)

 

339

 

361

 

1,313

 

1,531

EBITDA

 

$ 542

 

$ 650

 

$ 4,420

 

$ 3,783

(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.

 

17

 




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

SCHEDULE G - (Cont'd)

Reconciliation of Base Income Tax Rate to Effective Income Tax Rate

         
   

Three Months Ended

 

Year Ended

   

December 31,

 

December 31,

   

2004

 

2003

 

2004

 

2003

                 

Income (Loss) Before Income Taxes and

               

Minority Interests

 

$ 47

 

$(102)

 

$1,442

 

$ 143

                 

Remove: Special Items - Charge

 

98

 

318

 

1,420

 

1,875

                 

Net Exchange Losses

 

300

 

87

 

411

 

190(1)

                 

Income Before Income Taxes,

               

Special Items, Exchange Losses

               

and Minority Interests

 

$ 445

 

$ 303

 

$3,273

 

$2,208

                 

Benefit from Income Taxes

 

$(215)

 

$(743)

 

$ (329)

 

$ (930)

                 

Remove: Tax on Special Items

 

(13)

 

658

 

789

 

1,207

                 

Tax on Exchange Losses

 

315

 

82

 

360

 

187

                 

Provision for (benefit from) Income Taxes,

               

Excluding Taxes on Special Items and

               

Exchange Losses

 

$ 87

 

$ (3)

 

$ 820

 

$ 464

                 

Effective Income Tax Rate

 

(457.4)%

 

728.4%

 

(22.8)%

 

(650.4)%

                 

Base Income Tax Rate

 

19.5%

 

(1.3)%

 

25.0%

 

21.0%

 

(1)

Includes Special Item attributable to exchange gain of $30.


















18