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Actionable news in DD: E.I. DUPONT DE NEMOURS AND COMPANY,

E.I. du Pont de Nemours: Dupont Reports 3Q Operating Eps Of $0.13; Ytd Operating Eps Of $2.49

The following excerpt is from the company's SEC filing.

Cost Reductions and Productivity Continue to Contribute to Operating Margin Improvement in Most Segments

Reaffirms Outlook for Full-Year Operating Earnings of about $2.75 Per Share

Third-Quarter Highlights

Third-quarter operating earnings per share were $0.13 versus $0.39 in prior year. GAAP

earnings per share were $0.14 versus $0.36 in prior year.

Results reflected macro challenges including currency; industry wide challenges in Ag markets, particularly in Brazil; and continued weakness in emerging markets and oil and gas markets affecting Safety & Protection, partially offset by continued positive effects of the operational redesign and cost reductions in the quarter, including performance-based compensation.

Segment pre-tax operating earnings of $433 million included $187 million, or $0.17 per share, of negative impact from currency. Growth in Electronics & Communications and Industrial Biosciences was more than offset by declines in Agriculture, Performance Materials and Safety & Protection.

Cost reductions from operational redesign contributed an incremental $0.10 per share to third-quarter operating earnings, driving operating margin improvement in four segments; on track to deliver approximately $0.40 per share in incremental savings in 2015.

$2 billion accelerated share repurchase program launched in the quarter; on October 22

, announced fourth quarter dividend of $0.38 per share.

Year-to-Date Highlights

Reported year-to-date operating earnings per share of $2.49 versus $2.79 in prior year. Excluding negative currency impact of $0.53 per share, operating earnings per share would have increased 8 percent. GAAP

earnings per share were $2.33 versus $2.76 in prior year.

Accelerated $1.3 billion annual run-rate cost savings expected from operational redesign to year-end 2016; increased targeted cost savings from operational redesign to about $1.6 billion by year-end 2017. Current review of cost, working capital performance, and capital spending will assure that our cost actions will result in a further net benefit to the bottom line.

DuPont continues to expect full-year 2015 operating earnings to be about $2.75 per share. Negative currency impact expected to be $0.72 per share. Excluding the impact of currency, the guidance for full-year operating earnings per share, including expected benefits from share repurchases and cost savings, represents an approximate 3-percent increase year over year.

Generally Accepted Accounting Principles (GAAP)

E.I. du Pont de Nemours and Company

WILMINGTON, Del., Oct. 27, 2015 - DuPont (NYSE: DD), a science company that brings world-class, innovative products, materials, and services to the global marketplace, today announced third-quarter 2015 operating earnings of $0.13 per share compared with $0.39 per share in the prior year. GAAP

earnings were $0.14 per share, compared with $0.36 per share in the prior year.

Third-quarter sales were $4.9 billion, down 17 percent versus prior year due to negative impacts from currency (8 percent), portfolio (1 percent), volume (7 percent) and local price and product mix (1 percent). Year-to-date sales were $19.8 billion, down 12 percent versus prior year due to negative impacts from currency (7 percent), portfolio (2 percent) and volume (3 percent).

“While our bottom line continues to benefit from the positive effects of our operational redesign and productivity improvements, we are not pleased with our results this quarter,” said Nick Fanandakis, Executive Vice President and CFO. “We saw significant negative impacts from currency as well as market weakness in agriculture, emerging market industrial production, and oil and gas. We remain on track with our revised annual guidance of operating earnings per share of about $2.75, an increase from the prior year of 3 percent excluding currency.”

“Amid the current challenging macro environment, our priority is to aggressively manage what is within our control, including taking a fresh look at DuPont’s cost structure and capital allocation strategy to identify ways to further improve shareholder return,” said Ed Breen, DuPont Interim Chair and CEO. “Addressing these areas even more intensely will put DuPont in a stronger position to capitalize over the long term on our unique science and leading positions in attractive growth markets while generating appropriate returns for shareholders in the near term.”

Global Consolidated Net Sales - 3rd Quarter and Year-to-Date

Three Months Ended

September 30, 2015

Percentage Change Due to:

(Dollars in millions)

% Change

Local Price and Product Mix

Currency

Volume

Portfolio/Other

U.S. & Canada

Asia Pacific

Latin America

Total Consolidated Sales

Nine Months Ended

19,831

* Europe, Middle East & Africa

Segment Net Sales - 3rd Quarter and Year-to-Date

Local Price and Product Mix

Nutrition & Health

Operating Earnings - 3rd Quarter and Year-to-Date

Change vs. 2014

Total segment operating earnings

Exchange gains (losses)

Corporate expenses

Interest expense

Operating earnings before income taxes

Provision for income taxes on operating earnings

Less: Net income attributable to noncontrolling interests

Operating earnings per share

YTD 3Q15

YTD 3Q14

(1), (2)

Interest expense

See Schedules B and C for listing of significant items and their impact by segment.

See Schedule D for additional information on exchange gains and losses.

The following is a summary of business results for each of the company’s reportable segments comparing third quarter with the prior year, unless otherwise noted.

- A seasonal operating loss of $210 million was $154 million larger as improved productivity and cost reductions, increases in local price, $27 million gains from asset sales and a $21 million benefit related to prior periods were more than offset by lower volumes and a $108 million negative currency impact. Decreased volumes are due to lower seed volumes and reduced demand for insect control products, primarily in Brazil, and an about $40 million negative impact from the LaPorte manufacturing facility shutdown. Excluding the impact of currency, the operating loss would have been $102 million.

Electronics & Communications

- Operating earnings of $104 million increased $14 million, or 16 percent, on continued productivity and cost reductions. Volume growth in Tedlar

film in photovoltaics and consumer electronics was more than offset by competitive pressures impacting Solamet

paste.

- Operating earnings of $52 million increased $10 million, or 24 percent, as volume growth and benefits from cost reductions were partially offset by lower pricing and a $3 million negative impact from currency. Volume improved across the business driven primarily by increased demand in food and home and personal care markets. Excluding the impact of currency, operating earnings would have increased 31 percent.

- Operating earnings of $102 million increased $3 million, or 3 percent, as cost reductions and continued productivity more than offset a $17 million negative impact from currency. Volume growth in probiotics, ingredient systems and texturants was offset by a decline in specialty proteins. Excluding the impact of currency, operating earnings would have increased by about 20 percent.

- Operating earnings of $317 million decreased $49 million, or 13 percent, as cost reductions and continued productivity were more than offset by $47 million of negative currency impact and lower ethylene price and volume. Operating earnings included a $16 million net benefit from a joint venture, which was more than offset by the absence of a prior year $23 million gain on the sale of a majority interest in a joint venture. Excluding the impact of currency, operating earnings would have been about even with the prior year.

Safety & Protection

- Operating earnings of $156 million decreased $39 million, or 20 percent. Cost reductions and productivity improvements were more than offset by lower demand, a negative currency impact of $13 million, and the portfolio impact of the Sontara® divestiture. Volume growth in Tyvek® protective material for medical packaging was more than offset by weakness in the oil and gas industry, which impacted Nomex® thermal-resistant fiber and Sustainable Solutions offerings, and by delays in military spending, which...


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