Delaware | 1-815 | 51-0014090 | ||
(State or Other Jurisdiction | (Commission | (I.R.S. Employer | ||
Of Incorporation) | File Number) | Identification No.) |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
2
E. I. DU PONT DE NEMOURS AND COMPANY (Registrant) |
||||
/s/ Barry J. Niziolek | ||||
Barry J. Niziolek | ||||
Vice President and Controller | ||||
3
JULY 22, 2008
|
Contact: | Anthony Farina | ||
WILMINGTON, Del.
|
302-774-4005 | |||
anthony.r.farina@usa.dupont.com |
| Second quarter 2008 earnings per share grew 13 percent to $1.18, up from $1.04 in the second quarter of 2007. Earnings benefited $.07 per share from a litigation settlement and a lower base tax rate. | ||
| Sales increased 12 percent to $8.8 billion, reflecting 7 percent higher local selling prices, 5 percent currency benefit, 1 percent higher volumes and a 1 percent reduction from portfolio changes. Sales outside the United States grew 18 percent, while sales in the United States grew 5 percent despite weakness in housing and automotive markets. | ||
| Local selling prices increased 7 percent, partially offsetting a 15 percent increase in energy, raw materials and freight costs in the second quarter. | ||
| Agriculture & Nutrition sales grew 23 percent, reflecting strong global demand for the companys corn, soybean and crop protection products. | ||
| Fixed costs as a percentage of sales improved 200 basis points from the prior-year quarter, reflecting the companys continued cost productivity improvement programs. | ||
| DuPont increased the lower end of its full year 2008 earnings outlook, narrowing the range to $3.45 to $3.55 per share. |
2
Three Months | ||||||||||||||||||||||||
Ended June 30, | ||||||||||||||||||||||||
2008 | Percentage Change Due to: | |||||||||||||||||||||||
Local | ||||||||||||||||||||||||
% | Currency | Currency | ||||||||||||||||||||||
(dollars in billions) | $ | Change | Price | Effect | Volume | Portfolio | ||||||||||||||||||
U.S. |
$ | 3.5 | 5 | 9 | | (4 | ) | | ||||||||||||||||
Europe |
2.7 | 18 | 4 | 12 | 3 | (1 | ) | |||||||||||||||||
Asia Pacific |
1.5 | 18 | 5 | 4 | 11 | (2 | ) | |||||||||||||||||
Canada & Latin America |
1.1 | 17 | 6 | 7 | 5 | (1 | ) | |||||||||||||||||
Total Consolidated Sales |
$ | 8.8 | 12 | 7 | 5 | 1 | (1 | ) |
EPS | ||||
2nd Quarter 2007 |
$ | 1.04 | ||
Variances: |
||||
Local prices |
.42 | |||
Variable costs* |
(.51 | ) | ||
Volume |
.03 | |||
Fixed costs* |
(.04 | ) | ||
Currency |
.11 | |||
Pharmaceuticals |
.02 | |||
Tax rate** |
.03 | |||
Litigation settlement |
.04 | |||
Fewer shares |
.03 | |||
Lower interest expense |
.01 | |||
2nd Quarter 2008 |
$ | 1.18 |
* | Excludes volume and currency impact | |
** | Includes $0.03 from a favorable tax settlement |
3
SEGMENT SALES* | Three Months Ended | |||||||||||||||||||
(Dollars in billions) | June 30, | Percentage Change | ||||||||||||||||||
2008 | Due to: | |||||||||||||||||||
% | USD | |||||||||||||||||||
$ | Change | Price | Volume | Portfolio | ||||||||||||||||
Agriculture & Nutrition |
$ | 2.5 | 23 | 15 | 9 | (1 | ) | |||||||||||||
Coatings & Color Technologies |
1.9 | 10 | 11 | (1 | ) | | ||||||||||||||
Electronic & Communication Technologies |
1.1 | 10 | 7 | 1 | 2 | |||||||||||||||
Performance Materials |
1.8 | 8 | 13 | (5 | ) | | ||||||||||||||
Safety & Protection |
1.6 | 8 | 9 | 2 | (3 | ) |
* | Segment sales include transfers |
Three Months Ended | ||||||||||||
June 30, 2008 | ||||||||||||
% Change vs. | ||||||||||||
(Dollars in millions) | 2008 | 2007 | 2007 | |||||||||
Agriculture & Nutrition |
$ | 504 | $ | 428 | 18 | |||||||
Coatings & Color Technologies |
247 | 226 | 9 | |||||||||
Electronic & Communication Technologies |
170 | 176 | (3 | ) | ||||||||
Performance Materials |
223 | 227 | (2 | ) | ||||||||
Safety & Protection |
302 | 318 | (5 | ) | ||||||||
Total Growth Platforms |
1,446 | 1,375 | 5 | |||||||||
Pharmaceuticals |
265 | 241 | 10 | |||||||||
Other |
1 | (37 | ) | nm | ||||||||
Total Segments |
$ | 1,712 | $ | 1,579 | 8 |
4
| Sales increased $467 million, or 23 percent, to $2.5 billion, reflecting record seed revenue and strong global pricing actions across the platform. |
| PTOI increased 18 percent to $504 million, driven by higher volumes and USD prices across all businesses, partially offset by growth investments, higher commodity prices, and a $52 million charge on open soybean contracts. |
| Sales increased 10 percent to $1.9 billion. Higher USD selling price in all businesses and volume growth in emerging markets more than offset lower volumes in North America. |
| PTOI increased 9 percent to $247 million. Sales growth and favorable currency offset the impact of weak auto and housing markets and higher raw material and transportation costs. |
Electronic & Communication Technologies |
| Sales grew 10 percent to $1.1 billion, led by price gains and favorable currency. Strong demand for photovoltaics, printed packaging, and refrigerants was partially offset by weakness in U.S. automotive electronics. |
| PTOI was $170 million compared to $176 million in the prior-year quarter, which included a $25 million pre-tax inventory valuation benefit. Excluding this item, PTOI increased 13 percent, reflecting strong sales growth and cost productivity gains. |
| Sales grew 8 percent to $1.8 billion, driven by price gains, currency, and strong growth in Asia Pacific. Volumes outside Asia declined due to weakness in automotive markets and the impact of scheduled production outages. |
| PTOI decreased 2 percent to $223 million as significantly higher ingredient costs and lower volumes offset the benefit of price increases. |
| Sales grew 8 percent to $1.6 billion. Pricing gains, particularly in chemicals, favorable currency and broad-based volume growth in emerging markets was partially offset by lower volumes in the U.S. housing market. |
| PTOI of $302 million was down 5 percent. Significant earnings growth in the chemical businesses was offset by less favorable product mix, lower volumes in U.S. housing, higher raw material costs, and higher fixed costs associated with growth investments. |
5
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2008 | 2007 | 2008 | 2007 | |||||||||||||
Net sales |
$ | 8,837 | $ | 7,875 | $ | 17,412 | $ | 15,720 | ||||||||
Other income, net |
442 | 364 | 637 | 680 | ||||||||||||
Total |
9,279 | 8,239 | 18,049 | 16,400 | ||||||||||||
Cost of goods sold and other operating charges (a) |
6,426 | 5,602 | 12,382 | 11,196 | ||||||||||||
Selling, general and administrative expenses |
987 | 884 | 1,921 | 1,730 | ||||||||||||
Research and development expense |
360 | 337 | 690 | 647 | ||||||||||||
Interest expense |
94 | 108 | 174 | 207 | ||||||||||||
Total |
7,867 | 6,931 | 15,167 | 13,780 | ||||||||||||
Income before income taxes and minority interests |
1,412 | 1,308 | 2,882 | 2,620 | ||||||||||||
Provision for income taxes |
335 | 335 | 608 | 700 | ||||||||||||
Minority interests in (losses) earnings of consolidated
subsidiaries |
(1 | ) | 1 | 5 | 3 | |||||||||||
Net income |
$ | 1,078 | $ | 972 | $ | 2,269 | $ | 1,917 | ||||||||
Basic earnings per share of common stock |
$ | 1.19 | $ | 1.05 | $ | 2.51 | $ | 2.07 | ||||||||
Diluted earnings per share of common stock |
$ | 1.18 | $ | 1.04 | $ | 2.49 | $ | 2.05 | ||||||||
Dividends per share of common stock |
$ | 0.41 | $ | 0.37 | $ | 0.82 | $ | 0.74 | ||||||||
Average number of shares outstanding used in earnings per
share (EPS) calculation: |
||||||||||||||||
Basic |
902,617,000 | 923,817,000 | 901,627,000 | 923,907,000 | ||||||||||||
Diluted |
910,080,000 | 932,809,000 | 908,132,000 | 933,027,000 |
(a) | See Schedules of Significant Items for additional information. |
June 30, | December 31, | |||||||
2008 | 2007 | |||||||
Assets |
||||||||
Current assets |
||||||||
Cash and cash equivalents |
$ | 1,303 | $ | 1,305 | ||||
Marketable securities |
210 | 131 | ||||||
Accounts and notes receivable, net |
8,477 | 5,683 | ||||||
Inventories |
5,021 | 5,278 | ||||||
Prepaid expenses |
160 | 199 | ||||||
Income taxes |
565 | 564 | ||||||
Total current assets |
15,736 | 13,160 | ||||||
Property, plant and equipment, net of accumulated
depreciation (June 30, 2008 $16,425; December 31, 2007 $15,733) |
10,922 | 10,860 | ||||||
Goodwill |
2,085 | 2,074 | ||||||
Other intangible assets |
2,796 | 2,856 | ||||||
Investment in affiliates |
892 | 818 | ||||||
Other assets |
5,163 | 4,363 | ||||||
Total |
$ | 37,594 | $ | 34,131 | ||||
Liabilities and Stockholders Equity |
||||||||
Current liabilities |
||||||||
Accounts payable |
$ | 2,846 | $ | 3,172 | ||||
Short-term borrowings and capital lease obligations |
4,432 | 1,370 | ||||||
Income taxes |
170 | 176 | ||||||
Other accrued liabilities |
3,188 | 3,823 | ||||||
Total current liabilities |
10,636 | 8,541 | ||||||
Long-term borrowings and capital lease obligations |
5,361 | 5,955 | ||||||
Other liabilities |
7,287 | 7,255 | ||||||
Deferred income taxes |
966 | 802 | ||||||
Total liabilities |
24,250 | 22,553 | ||||||
Minority interests |
441 | 442 | ||||||
Commitments and contingent liabilities |
||||||||
Stockholders equity |
||||||||
Preferred stock |
237 | 237 | ||||||
Common stock, $0.30 par value; 1,800,000,000 shares
authorized;
issued at June 30, 2008 989,194,000; December 31,
2007 986,330,000 |
297 | 296 | ||||||
Additional paid-in capital |
8,336 | 8,179 | ||||||
Reinvested earnings |
11,466 | 9,945 | ||||||
Accumulated other comprehensive loss |
(706 | ) | (794 | ) | ||||
Common stock held in treasury, at cost (87,041,000
shares at June 30, 2008
and December 31, 2007) |
(6,727 | ) | (6,727 | ) | ||||
Total stockholders equity |
12,903 | 11,136 | ||||||
Total |
$ | 37,594 | $ | 34,131 | ||||
Six Months Ended | ||||||||
June 30, | ||||||||
2008 | 2007 | |||||||
Cash (used for) provided by operating activities |
$ | (433 | ) | $ | 383 | |||
Investing activities |
||||||||
Purchases of property, plant and equipment |
(892 | ) | (621 | ) | ||||
Investments in affiliates |
(19 | ) | (23 | ) | ||||
Payments for Businesses (Net of Cash Acquired) |
(67 | ) | | |||||
Other investing activities net |
(356 | ) | (28 | ) | ||||
Cash used for investing activities |
(1,334 | ) | (672 | ) | ||||
Financing activities |
||||||||
Dividends paid to stockholders |
(749 | ) | (692 | ) | ||||
Net increase in borrowings |
2,443 | 472 | ||||||
Other financing activities net |
46 | (315 | ) | |||||
Cash provided by (used for) financing activities |
1,740 | (535 | ) | |||||
Effect of exchange rate changes on cash |
25 | (3 | ) | |||||
Decrease in cash and cash equivalents |
(2 | ) | (827 | ) | ||||
Cash and cash equivalents at beginning of period |
1,305 | 1,814 | ||||||
Cash and cash equivalents at end of period |
$ | 1,303 | $ | 987 | ||||
Pre-tax | After-tax | ($ Per Share) | ||||||||||||||||||||||
2008 | 2007 | 2008 | 2007 | 2008 | 2007 | |||||||||||||||||||
1st Quarter Total (a) |
$ | | $ | (52 | ) | $ | | $ | (52 | ) | $ | | $ | (0.06 | ) | |||||||||
2nd Quarter |
$ | | $ | | $ | | $ | | $ | | $ | | ||||||||||||
2nd Quarter Total |
$ | | $ | | $ | | $ | | $ | | $ | | ||||||||||||
Year-to-date Total |
$ | | $ | (52 | ) | $ | | $ | (52 | ) | $ | | $ | (0.06 | ) | |||||||||
(a) | First quarter 2007 includes a net $52 charge in Cost of goods sold and other operating charges for litigation in the Performance Materials segment in connection with the elastomers antitrust matter. |
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
SEGMENT SALES (1) | 2008 | 2007 | 2008 | 2007 | ||||||||||||
Agriculture & Nutrition |
$ | 2,541 | $ | 2,074 | $ | 5,424 | $ | 4,524 | ||||||||
Coatings & Color Technologies |
1,867 | 1,701 | 3,512 | 3,260 | ||||||||||||
Electronic & Communication Technologies |
1,074 | 979 | 2,100 | 1,899 | ||||||||||||
Performance Materials |
1,810 | 1,679 | 3,523 | 3,268 | ||||||||||||
Safety & Protection |
1,583 | 1,466 | 2,948 | 2,836 | ||||||||||||
Other |
44 | 50 | 84 | 93 | ||||||||||||
Total Segment sales |
$ | 8,919 | $ | 7,949 | $ | 17,591 | $ | 15,880 | ||||||||
Elimination of transfers |
(82 | ) | (74 | ) | (179 | ) | (160 | ) | ||||||||
Consolidated net sales |
$ | 8,837 | $ | 7,875 | $ | 17,412 | $ | 15,720 | ||||||||
(1) | Sales for the reporting segments include transfers. |
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
PRETAX OPERATING INCOME/(LOSS) (PTOI) | 2008 | 2007 | 2008 | 2007 | ||||||||||||
Agriculture & Nutrition |
$ | 504 | $ | 428 | $ | 1,290 | $ | 1,079 | ||||||||
Coatings & Color Technologies |
247 | 226 | 437 | 420 | ||||||||||||
Electronic & Communication Technologies |
170 | 176 | 345 | 300 | ||||||||||||
Performance Materials |
223 | 227 | 442 | 377 | ||||||||||||
Safety & Protection |
302 | 318 | 574 | 609 | ||||||||||||
Total Growth Platforms |
1,446 | 1,375 | 3,088 | 2,785 | ||||||||||||
Pharmaceuticals |
265 | 241 | 500 | 466 | ||||||||||||
Other |
1 | (37 | ) | (25 | ) | (93 | ) | |||||||||
Total Segment PTOI |
$ | 1,712 | $ | 1,579 | $ | 3,563 | $ | 3,158 | ||||||||
Net exchange losses (1) |
(29 | ) | 8 | (184 | ) | (20 | ) | |||||||||
Corporate expenses & net interest |
(271 | ) | (279 | ) | (497 | ) | (518 | ) | ||||||||
Income before income taxes and minority interests |
$ | 1,412 | $ | 1,308 | $ | 2,882 | $ | 2,620 | ||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
SIGNIFICANT ITEMS BY SEGMENT (PRE-TAX)(2) | 2008 | 2007 | 2008 | 2007 | ||||||||||||
Agriculture & Nutrition |
$ | | $ | | $ | | $ | | ||||||||
Coatings & Color Technologies |
| | | | ||||||||||||
Electronic & Communication Technologies |
| | | | ||||||||||||
Performance Materials |
| | | (52 | ) | |||||||||||
Safety & Protection |
| | | | ||||||||||||
Other |
| | | | ||||||||||||
Total Significant Items by segment |
$ | | $ | | $ | | $ | (52 | ) | |||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
PTOI EXCLUDING SIGNIFICANT ITEMS | 2008 | 2007 | 2008 | 2007 | ||||||||||||
Agriculture & Nutrition |
$ | 504 | $ | 428 | $ | 1,290 | $ | 1,079 | ||||||||
Coatings & Color Technologies |
247 | 226 | 437 | 420 | ||||||||||||
Electronic & Communication Technologies |
170 | 176 | 345 | 300 | ||||||||||||
Performance Materials |
223 | 227 | 442 | 429 | ||||||||||||
Safety & Protection |
302 | 318 | 574 | 609 | ||||||||||||
Total Growth Platforms |
1,446 | 1,375 | 3,088 | 2,837 | ||||||||||||
Pharmaceuticals |
265 | 241 | 500 | 466 | ||||||||||||
Other |
1 | (37 | ) | (25 | ) | (93 | ) | |||||||||
Total Segment PTOI excluding Significant Items |
$ | 1,712 | $ | 1,579 | $ | 3,563 | $ | 3,210 | ||||||||
(1) | Net after-tax exchange activity for the three months ended June 30, 2008 and 2007 were losses of $37 and $7, respectively. Net after-tax exchange activity for the six months ended June 30, 2008 and 2007 were losses of $51 and $25, respectively. Gains and losses resulting from the companys hedging program are largely offset by associated tax effects. See Schedule D for additional information. | |
(2) | Refer to the Notes to Schedules of Significant Items for additional information. |
Three Months Ended | Six Months Ended | |||||||||||||||||||||||
June 30, | June 30, | |||||||||||||||||||||||
% | % | |||||||||||||||||||||||
2008 | 2007 | Change | 2008 | 2007 | Change | |||||||||||||||||||
Segment PTOI |
$ | 1,712 | $ | 1,579 | 8 | % | $ | 3,563 | $ | 3,158 | 13 | % | ||||||||||||
Significant Items charge included in PTOI (per Schedule B) |
| | | 52 | ||||||||||||||||||||
Segment PTOI excluding Significant Items |
$ | 1,712 | $ | 1,579 | 8 | % | $ | 3,563 | $ | 3,210 | 11 | % | ||||||||||||
Net Income |
$ | 1,078 | $ | 972 | 11 | % | $ | 2,269 | $ | 1,917 | 18 | % | ||||||||||||
Significant Items charge included in Net Income (per Schedule B) |
| | | 52 | ||||||||||||||||||||
Net Income excluding Significant Items |
$ | 1,078 | $ | 972 | 11 | % | $ | 2,269 | $ | 1,969 | 15 | % | ||||||||||||
EPS |
$ | 1.18 | $ | 1.04 | 13 | % | $ | 2.49 | $ | 2.05 | 21 | % | ||||||||||||
Significant Items charge included in EPS (per Schedule B) |
| | | 0.06 | ||||||||||||||||||||
EPS excluding Significant Items |
$ | 1.18 | $ | 1.04 | 13 | % | $ | 2.49 | $ | 2.11 | 18 | % | ||||||||||||
Average number of diluted shares outstanding |
910,080,000 | 932,809,000 | -2.4 | % | 908,132,000 | 933,027,000 | -2.7 | % |
Three Months Ended | Six Months Ended | |||||||||||||||||||||||
June 30, | June 30, | |||||||||||||||||||||||
2008 |
2007 |
% Change |
2008 |
2007 |
% Change |
|||||||||||||||||||
Segment PTOI excluding Significant Items |
$ | 1,712 | $ | 1,579 | 8 | % | $ | 3,563 | $ | 3,210 | 11 | % | ||||||||||||
Segment sales |
8,919 | 7,949 | 12 | % | 17,591 | 15,880 | 11 | % | ||||||||||||||||
Segment PTOI as a percent of segment sales |
19.2 | % | 19.9 | % | 20.3 | % | 20.2 | % |
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2008 | 2007 | 2008 | 2007 | |||||||||||||
Income before income taxes and minority interests |
$ | 1,412 | $ | 1,308 | $ | 2,882 | $ | 2,620 | ||||||||
Less: Minority interests in (losses) earnings of consolidated subsidiaries |
(1 | ) | 1 | 5 | 3 | |||||||||||
Add: Interest expense |
94 | 108 | 174 | 207 | ||||||||||||
EBIT |
1,507 | 1,415 | 3,051 | 2,824 | ||||||||||||
Add: Depreciation and amortization |
370 | 343 | 750 | 689 | ||||||||||||
EBITDA |
$ | 1,877 | $ | 1,758 | $ | 3,801 | $ | 3,513 | ||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2008 | 2007 | 2008 | 2007 | |||||||||||||
Total charges and expenses consolidated income statements |
$ | 7,867 | $ | 6,931 | $ | 15,167 | $ | 13,780 | ||||||||
Remove: |
||||||||||||||||
Interest expense |
(94 | ) | (108 | ) | (174 | ) | (207 | ) | ||||||||
Variable costs (1) |
(4,542 | ) | (3,781 | ) | (8,682 | ) | (7,524 | ) | ||||||||
Significant Items charge (2) |
| | | (52 | ) | |||||||||||
Fixed costs |
$ | 3,231 | $ | 3,042 | $ | 6,311 | $ | 5,997 | ||||||||
Consolidated net sales |
$ | 8,837 | $ | 7,875 | $ | 17,412 | $ | 15,720 | ||||||||
Fixed costs as a percent of consolidated net sales |
36.6 | % | 38.6 | % | 36.2 | % | 38.1 | % |
(1) | Includes variable manufacturing costs, freight, commissions and other selling expenses which vary with the volume of sales. | |
(2) | See Schedule B for detail of Significant Items. |
Six Months Ended | Year Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2008 | 2007 | 2008 | 2007 | |||||||||||||
Outlook | Actual | Outlook | Actual | |||||||||||||
Earnings per share excluding Significant Items |
$ | .96 to $1.06 | $ | 1.16 | $ | 3.45 to $3.55 | $ | 3.28 | ||||||||
Significant Items included in EPS: |
||||||||||||||||
Impairment charge Performance Materials |
| (0.15 | ) | | (0.15 | ) | ||||||||||
Litigation related charges Other |
| (0.03 | ) | | (0.03 | ) | ||||||||||
Litigation related charges, net Performance
Materials |
| 0.05 | | (0.01 | ) | |||||||||||
Corporate tax-related items |
| 0.13 | | 0.13 | ||||||||||||
Net charge for Significant Items |
| | | (0.06 | ) | |||||||||||
Reported EPS |
$ | .96 to $1.06 | $ | 1.16 | $ | 3.45 to $3.55 | $ | 3.22 | ||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2008 | 2007 | 2008 | 2007 | |||||||||||||
Subsidiary/Affiliate Monetary Position (Gain)/Loss |
||||||||||||||||
Pretax exchange (gains)/losses (includes equity affiliates) |
$ | (58 | ) | $ | (32 | ) | $ | (209 | ) | $ | (58 | ) | ||||
Local tax expenses/(benefits) |
38 | 23 | 4 | 32 | ||||||||||||
Net after-tax impact from subsidiary exchange (gains)/losses |
$ | (20 | ) | $ | (9 | ) | $ | (205 | ) | $ | (26 | ) | ||||
Hedging Program (Gain)/Loss |
||||||||||||||||
Pretax exchange (gains)/losses |
$ | 87 | $ | 24 | $ | 393 | $ | 78 | ||||||||
Tax (benefits)/expenses |
(30 | ) | (8 | ) | (137 | ) | (27 | ) | ||||||||
Net after-tax impact from hedging program exchange (gains)/losses |
$ | 57 | $ | 16 | $ | 256 | $ | 51 | ||||||||
Total Exchange (Gain)/Loss |
||||||||||||||||
Pretax exchange (gains)/losses |
$ | 29 | $ | (8 | ) | $ | 184 | $ | 20 | |||||||
Tax expenses/(benefits) |
8 | 15 | (133 | ) | 5 | |||||||||||
Net after-tax exchange (gains)/losses |
$ | 37 | $ | 7 | $ | 51 | $ | 25 | ||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2008 | 2007 | 2008 | 2007 | |||||||||||||
Income before income taxes and minority interests |
$ | 1,412 | $ | 1,308 | $ | 2,882 | $ | 2,620 | ||||||||
Add: Significant Items charge |
| | | 52 | ||||||||||||
Net exchange losses |
29 | (8 | ) | 184 | 20 | |||||||||||
Income before income taxes, Significant Items, exchange gains/losses and
minority interests |
$ | 1,441 | $ | 1,300 | $ | 3,066 | $ | 2,692 | ||||||||
Provision for income taxes |
$ | 335 | $ | 335 | $ | 608 | $ | 700 | ||||||||
Add: Tax benefit on Significant Items |
| | | | ||||||||||||
Tax benefit on exchange gains/losses |
(8 | ) | (15 | ) | 133 | (5 | ) | |||||||||
Provision for income taxes, excluding taxes on Significant Items and exchange
gains/losses |
$ | 327 | $ | 320 | $ | 741 | $ | 695 | ||||||||
Effective income tax rate |
23.7 | % | 25.6 | % | 21.1 | % | 26.7 | % | ||||||||
Significant Items effect |
0.0 | % | 0.0 | % | 0.0 | % | (0.5 | )% | ||||||||
Tax rate before significant items |
23.7 | % | 25.6 | % | 21.1 | % | 26.2 | % | ||||||||
Exchange gains/losses effect |
(1.0 | )% | (1.0 | )% | 3.1 | % | (0.4 | )% | ||||||||
Base income tax rate |
22.7 | % | 24.6 | % | 24.2 | % | 25.8 | % | ||||||||