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DuPont Reports 1Q Earnings, Down 36%

Wednesday, April 25, 2001

Press release from the issuing company

4/25/01 - Summary - * First quarter 2001 underlying earnings of $.54 per share were in line with expectations, but 36 percent below first quarter 2000 earnings of $.85 per share. * Segment sales in first quarter 2001 of $7.6billion decreased 9percent versus first quarter 2000. This reflects 7percent lower volume and 2percent lower U.S. dollar selling prices. * First quarter underlying after-tax operating income (ATOI) was $734million, 33percent below first quarter 2000. ATOI margin was 10percent. * Pharmaceuticals accounted for approximately one-third of the underlying ATOI decline. Excluding Pharmaceuticals, ATOI reductions also reflect a $165million impact from higher raw material costs and $100million from lower sales volume. * Worldwide local currency selling prices were up 1percent. Adverse currency effects, principally from the weaker euro and Japanese yen, reduced first quarter worldwide segment sales by 3percent. * Actions leading to business restructurings and personnel reductions to better align resources with the specific mission of each business are under way. One-time charges associated with these initiatives will be taken in the second quarter and have no impact on first quarter results. DuPont reported earnings before one-time items, of $.54 per share for the first quarter, compared to $.85 per share earned last year. "We are taking the right steps to manage through a global economic slowdown," said Charles O. Holliday, Jr., DuPont chairman and chief executive officer. "As we take these steps, we are managing operating costs and capital spending in line with current economic conditions and streamlining businesses to sharpen competitiveness." Global Sales and Income Highlights For the quarter, consolidated sales totaled $6.9billion compared to $7.6billion in 2000. Segment sales, including transfers and a prorata share of sales by equity affiliates, were $7.6billion, down 9percent from $8.3billion in 2000. Net income was $495million versus $803million in 2000, resulting in earnings per share of $.47 compared to $.76 last year. The earnings decline reflects significantly lower Pharmaceuticals results and reduced earnings across the company's chemicals and materials segments. The latter resulted principally from lower U.S. sales volumes, higher raw material costs, and a stronger U.S. dollar. Net income before one-time items was $567million, compared to $898million in the first quarter of 2000, down $331million or 37percent.




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