(MENAFNEditorial) WILMINGTON, Del., July 26, 2016 – DuPont (NYSE: DD), a science company that brings world-class, innovative products, materials, and services to the global marketplace, today announced second-quarter 2016 GAAP earnings of $1.16 per share and operating earnings2 of $1.24 per share. Prior year GAAP and operating earnings2 were $1.06 and $1.09 per share, respectively. Refer to Schedule B for details of significant items.
Second-quarter 2016 sales totaled $7.1 billion, down slightly versus prior year as volume growth of 2 percent was more than offset by pressure from local price, currency and portfolio.
''Our continued focus on our plan delivered strong results. Solid execution enabled volume growth of 2 percent, and we expanded operating margins across all reportable segments. Cost savings, mix enrichment from new technologies and lower product costs contributed to the margin expansion. Continued progress on our cost savings program keeps us on track to reach $1 billion on a run-rate basis by year-end,” said Ed Breen, chair and CEO of DuPont. ''We are pleased with the overwhelming vote of approval the merger received from our shareholders. We are preparing to hit the ground running immediately after closing, which we continue to expect later this year as we work closely with regulators in all relevant jurisdictions. We look forward to standing up three strong businesses and enhancing our ability to offer innovative, value-added solutions and increased choice to our customers.”
Second-Quarter Highlights
• GAAP1 earnings per share totaled $1.16 versus $1.06 in prior year. Operating earnings2 per share increased 14 percent to $1.24, including $0.05 per share of negative impact from currency.
• Sales of $7.1 billion reflected 2-percent volume growth, due to Agriculture, Performance Materials and Nutrition & Health. Local price, currency and portfolio in aggregate negatively impacted sales by 3 percent, resulting in total sales declining 1 percent.
• Agriculture sales reflected 3-percent volume growth, driven by higher corn seed and insecticide sales, partially offset by lower soybean volumes in North America. Volume growth was offset by negative impacts from currency and portfolio.
• Total company gross margins expanded more than 100 basis points. Total segment operating margins increased about 250 basis points, as operating margins expanded in all reportable segments.
• Total segment pre-tax operating earnings2 of $1,613 million increased 11 percent, despite approximately $60 million of negative impact from currency.
• GAAP operating costs3 declined by approximately $160 million. Excluding significant items and non-operating pension/OPEB costs, operating costs2 declined by approximately $220 million, a 12-percent reduction versus prior year.
• GAAP corporate expenses declined 26 percent versus prior year. Excluding significant items, corporate expenses2 declined by $65 million or 44 percent.
• DuPont now expects full-year 2016 GAAP earnings to be in the range of $2.70 - $2.75 per share and has increased the low-end of its previous 2016 operating earnings2 range by $0.10 per share to $3.15 – $3.20 per share.
2016 Outlook
The company now expects full-year 2016 GAAP earnings to be in the range of $2.70 to $2.75 per share and operating earnings2 to be in the range of $3.15 to $3.20 per share, an increase of $0.10 per share to the low-end of its previously communicated range. The estimated negative currency impact for full-year 2016 is now expected to be about $0.15 per share. The company continues to expect a benefit of $0.64 per share from the 2016 global cost savings and restructuring plan and a headwind from a higher base tax rate in 2016 of about $0.10 per share. The company";s full-year 2016 GAAP earnings includes an expected charge of about $0.45 per share for transaction costs associated with the planned merger with Dow. For third-quarter 2016, the company expects operating earnings per share to be 50 percent higher than the prior year.
DuPont will hold a conference call and webcast on Tuesday, July 26, 2016, at 8:00 AM EDT to discuss this news release. The webcast and additional presentation materials can be accessed by visiting the company";s investor website (Events & Presentations) at www.investors.dupont.com. A replay of the conference call webcast will be available for 90 days by calling 1-630-652-3042, Passcode 7979114#. For additional information see the investor center at http://www.dupont.com.
Use of Non-GAAP Measures
This earnings release includes information that does not conform to U.S. generally accepted accounting principles (GAAP) and are considered non-GAAP measures. These measures include the company";s consolidated results and earnings per share on an operating earnings basis, which excludes significant items and non-operating pension and other postretirement employee benefit costs (operating earnings and operating EPS), total segment pre-tax operating earnings, operating costs and corporate expenses on an operating earnings basis. Management uses these measures internally for planning, forecasting and evaluating the performance of the Company";s segments, including allocating resources and evaluating incentive compensation. Management believes that these non-GAAP measurements are meaningful to investors as they provide insight with respect to ongoing operating results of the company and provide a more useful comparison of year-over-year results. Additional non-GAAP measures presented in the earnings release include operating EPS and segment operating earnings excluding currency. Management believes that operating EPS and segment operating earnings excluding currency are useful in providing additional perspective regarding business results and trends. These non-GAAP measurements supplement our GAAP disclosures and should not be viewed as an alternative to GAAP measures of performance. Reconciliations of non-GAAP measures to GAAP are provided in schedules A, C and D. Details of significant items are provided in schedule B.
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.