DuPont Reports Second-Quarter 2016 Results
Volumes Grew due to Strength in Agriculture, Performance Materials, and Nutrition & Health
Operating Margins Expanded in all Reportable Segments
- 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 nonoperating 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.
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.”