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DuPont Revises 2000
Earnings Per Share Growth to 10-14 Percent: Cites Energy Costs and
Currency
Clif
Webb
302-774-4005
r.clifton.webb@usa.dupont.com
WILMINGTON, Del.,
Sept. 7, 2000 – Citing
substantially higher-than-forecast increases in energy and raw
materials costs, DuPont today announced it has revised its full-year
2000 earnings per share (EPS) outlook to $2.85 - $2.95 per share,
before one-time items, 10-14 percent higher than the $2.58
earned last year. This revised outlook compares to the current
First Call consensus estimate of $3.01.
In July
the company reaffirmed its full year 2000 earnings per share growth
target despite the anticipated second half impact of high raw
materials costs, a weak Euro versus the U.S. dollar and some slowing
in the U.S. economy. Since that time, raw materials prices
have sharply increased, with oil and U.S. natural gas increasing by
more than 20 and 30 percent, respectively. The Euro continues
to weaken versus the U.S. dollar, and volume growth is slowing in
some markets, particularly apparel. Changes in these three
factors since July, when the company announced second quarter
earnings, will negatively impact second half results by an estimated
$250 - $275 million, pre-tax, or 15-17 cents per share.
For the full year, the negative impact of higher raw material
costs and currency is expected to exceed $1 billion, pre-tax.
Actions taken by the company are expected to more than offset
these negative factors, resulting in the projected 10-14 percent
growth in earnings per share, before one-time items.
"Our employees have demonstrated
tremendous resolve in responding to very challenging economic
conditions throughout the year and have aggressively addressed the
significant cost challenges we face," said DuPont Chairman and CEO
Charles O. Holliday, Jr. "The actions taken to improve
pricing, control spending and implement Six Sigma are benefiting the
bottom line this year and will continue to do so in 2001.
Assuming some improvement in energy costs, modest
strengthening of the Euro versus the dollar and reasonable economic
growth, we are confident we will achieve 10 percent-plus underlying
EPS growth in 2001."
DuPont is a science company, delivering science-based
solutions that make a difference in people's lives in food and
nutrition; health care; apparel; home and construction; electronics;
and transportation. Founded in 1802, the company operates in
70 countries and has 94,000 employees.
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 DuPont's
filings with the Securities and Exchange Commission, particularly
its latest annual report on Form 10-K, 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.
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9/7/00 |
