WILMINGTON, Del., Oct. 25 /PRNewswire-FirstCall/ -- Highlights - As
previously announced, the third quarter included significant items
totaling $.42 per share for taxes associated with repatriation
under the American Jobs Creation Act, and charges for hurricane
damage. Third quarter 2005 earnings were a loss of $.09 per share.
- Excluding significant items, third quarter earnings were $.33 per
share, an increase of 32 percent vs. last year. - Segment sales
grew 5 percent to $6.2 billion, reflecting increases in all
operating segments, excluding prior year sales from divested
businesses. - Local prices increased 4 percent, more than
offsetting higher energy and ingredient costs. - Continued volume
growth in Asia, Latin America and Eastern Europe helped to offset
lower volumes in the United States and Western Europe. Total
volumes declined 1 percent, in part reflecting the impact of the
hurricanes on U.S. demand. - Business interruptions from Hurricanes
Katrina and Rita reduced third quarter sales about $100 million and
pretax operating income about $50 million, or approximately $.03
per share. Sale of non-core assets resulted in a gain of $.03 per
share. - Separately, the company announced actions to increase
shareholder value, including a $5 billion share repurchase program
and initiatives to accelerate its growth and productivity
strategies. "We continued our positive momentum with our seventh
consecutive quarter of margin expansion," said DuPont Chairman and
CEO Charles O. Holliday, Jr. "However, soaring energy and
ingredient costs are causing a structural shift that will create
challenges for our customers, suppliers, and our own operations. We
have initiated a number of actions today to ensure we achieve our
sustainable growth goals despite these new challenges." Actions to
Accelerate Growth & Share Repurchase A separate announcement
today discusses the company's actions to increase shareholder
value, which the company will discuss in greater detail at a
presentation for investors on Monday, Nov. 7, 2005, at 9:00 a.m.
(EST) in New York. The presentation will be webcast live via
http://www.dupont.com/. Global Consolidated Net Sales and Net
Income Consolidated net sales for the third quarter were $5.9
billion, up 2 percent versus the third quarter 2004. Net sales
increased 5 percent, excluding $155 million third quarter 2004
sales of the DuPont Dow Elastomers businesses transferred to Dow on
June 30, 2005. Net income for the third quarter 2005 was a loss of
$82 million, or $.09 per share, largely due to a tax charge of $320
million, or $.32 per share, related to planned repatriation under
the American Jobs Creation Act; and $95 million after tax, or $.10
per share, for damaged facilities, inventory write-offs and
clean-up costs associated with hurricane damage. Third quarter 2004
net income was $331 million, or $.33 per share, including
significant items totaling a net after- tax benefit of $78 million,
or $.08 per share. See Schedule B for a summary of these items.
Earnings Per Share The table below shows the variances in third
quarter 2005 earnings per share (EPS) versus third quarter 2004, by
major element: EPS ANALYSIS 3rd Quarter EPS - 2004 $.33 3Q'04
Significant Items (See Schedule B) $(.08) Local Prices .16 Variable
Costs (.12) Volume (.01) Fixed Costs (.04) Currency .03 Business
Portfolio Changes .03 Income Taxes/All Other .03 3Q'05 Significant
Items (See Schedule B) (.42) EPS - 2005 $(.09) Business Segment
Performance - Segment Sales Third quarter 2005 segment sales, which
include transfers and pro rata share of equity affiliate sales,
were $6.2 billion. Third quarter 2004 sales of $6.4 billion
included $0.5 billion from divested Textiles & Interiors
(T&I), elastomers and photomasks businesses. As shown below,
sales increased 5 percent versus 2004 excluding these divested
businesses. Sales grew from 4 percent higher local selling prices
and a 2 percent currency benefit, partly offset by 1 percent lower
volume. Lower volume is largely attributable to the impact of
Hurricanes Katrina and Rita. ANALYSIS OF SEGMENT SALES* Three
Months Ended Percentage Change Due to: BY PLATFORM September 30
U.S. $ (Dollars in billions) $ % Change Price Volume Agriculture
& Nutrition $1.0 3 % 2 1 Coatings & Color Technologies 1.5
5 6 (1) Electronic & Communication Technologies 0.9 9 5 4
Performance Materials 1.5 1 10 (9) Safety & Protection 1.3 7 4
3 Total Core Segments $6.2 5 % 6 (1) Three Months Ended Percentage
Change Due to: BY REGION September 30 Local Currency (Dollars in
billions) $ % Change Price Effect Volume U.S. $2.4 4 % 5 - (1)
Europe 1.6 (2) 3 1 (6) Asia Pacific 1.3 7 4 1 2 Canada & Latin
America 0.9 17 1 9 7 Total Core Segments $6.2 5 % 4 2 (1) *
Percentages shown above are after excluding from third quarter 2004
(a) Performance Materials sales of $155 million for former DuPont
Dow Elastomers (DDE) businesses transferred to The Dow Chemical
Company on June 30, 2005, and (b) Electronic & Communication
Technologies sales of $15 million for the divested Photomasks
business. Business Segment Performance - PTOI Segment pretax
operating income (PTOI) for third quarter 2005 was $545 million
compared to $438 million in the third quarter 2004. Segment PTOI
and percentage changes versus third quarter 2004 are shown in the
table below. The third quarter 2005 segment performance reflects a
$146 million hurricane charge. In addition, the current quarter
includes gains of $31 million from the divestiture of non-core
assets and $20 million from the sale of a T&I affiliate. The
third quarter 2004 segment results included charges of $165 million
from significant items (See Schedule B). Excluding significant
items, segment PTOI increased 15 percent versus prior year.
Excluding the divested T&I, elastomers and photomasks
businesses, segment PTOI increased 11 percent and, as a percentage
of sales, increased 1 percentage point. The third quarter 2005
benefit from gains on asset sales offset the impact of hurricane-
related business interruptions. Three Months Ended September 30
PRETAX OPERATING INCOME* Change (Dollars in millions) 2005 2004 vs.
2004 Agriculture & Nutrition $(134) $(183) $49MM Coatings &
Color Technologies 42 179 (77)% Electronic & Communication
Technologies 129 34 279 % Performance Materials 68 160 (57)%
Pharmaceuticals 197 173 14 % Safety & Protection 256 216 19 %
Other (including divested T&I businesses) (13) (141) $128MM
Total $545 $438 24 % * See Schedule B for detail of significant
items for the current and prior-year quarters. Agriculture &
Nutrition -- PTOI increased $49 million with a current quarter
seasonal loss of $134 million versus a $183 million loss in the
prior year. The improvement reflects higher prices, higher crop
protection volumes and productivity gains. -- Third quarter sales
were $1.0 billion, up 3 percent on higher prices, higher sales in
Latin America, and some early seasonal herbicide sales in North
America that occurred in the fourth quarter last year. -- 57 new
products were introduced during the quarter, including new corn
hybrids and soybean varieties for the southern hemisphere growing
season. Coatings & Color Technologies -- PTOI was $42 million,
including a $113 million charge for hurricane damage, versus $179
million in the prior year. Excluding that charge, PTOI declined 13
percent, primarily due to higher raw material costs and business
interruption in the titanium dioxide business caused by the
hurricanes. -- Third quarter segment sales were $1.5 billion, up 5
percent on 6 percent higher USD prices and 1 percent lower volume.
-- Higher selling prices largely reflect price improvements in
titanium dioxide and refinish products. -- 109 new products were
launched during the quarter, including a complete new line of
aviation primers, topcoats, and sealers. Electronic &
Communication Technologies -- PTOI was $129 million versus $34
million in the prior year. Excluding a $63 million significant item
charge in the prior year, PTOI increased 33 percent. -- Third
quarter sales were $0.9 billion, up 9 percent excluding third
quarter 2004 Photomasks sales. Sales growth reflects 5 percent
higher USD prices and 4 percent higher volume. -- Higher sales
volumes for electronic materials and fluoroproducts and higher
fluorochemical prices drove sales and earnings improvement. -- 36
new products were introduced during the quarter, including new
conductive pastes for photovoltaic panels. Performance Materials --
PTOI was $68 million versus $160 million in 2004. Excluding an $11
million hurricane charge, PTOI declined 51 percent, primarily due
to lower sales volumes (due in part to hurricanes) and declines in
elastomers. -- Excluding elastomers sales related to businesses
transferred to Dow, third quarter sales were $1.5 billion, up 1
percent on 10 percent higher USD prices and 9 percent lower volume.
-- Price increases offset the impact of significantly higher raw
material costs in the quarter. Lower volumes reflect hurricane
business interruption in the ethylene copolymers and related
intermediates businesses; declines in elastomers; and a business
decision to not support sales to certain lower margin accounts. --
61 new products were launched during the quarter including new
Crastin(R) resins with Teflon(R) lubrication for conveyor parts.
Safety & Protection -- PTOI was $256 million versus $216
million in the prior year. Excluding a $22 million hurricane
charge, PTOI improved 29 percent, reflecting strong sales growth
and a $31 million gain on the sale of non-core assets. -- Third
quarter sales were $1.3 billion, up 7 percent on 4 percent higher
USD prices and 3 percent higher volume. -- All businesses,
excluding chemicals, recorded solid double digit sales growth.
Chemicals sales were down primarily due to hurricane business
interruption. -- 62 new products were introduced during the
quarter, including new reinforced Tychem(R) protective apparel.
Additional information on segment performance is available on the
DuPont Investor Center at http://www.dupont.com/. Outlook "We are
working hard to overcome the challenges the hurricanes have
presented and to achieve a strong finish to the year for our
customers and our shareholders," said Holliday. "We have
accelerated our pricing initiatives and cost productivity measures
to offset the extraordinary increases in energy and ingredient
costs. The additional actions the company announced today will help
us accelerate value creation for our shareholders." In the fourth
quarter 2004, the company earned $.37 per share before a $.09
charge for significant items. The company expects several factors
to impact fourth quarter 2005 earnings. -- Results of the Coatings
& Color Technologies segment will be reduced because its
largest titanium dioxide manufacturing plant at DeLisle, Miss.,
damaged by Hurricane Katrina, will not begin to restart production
until late December. -- Similarly, results of the Performance
Materials segment will be reduced because its largest ethylene
copolymers and intermediates plant at Orange, Tex., was shut down
due to Hurricane Rita. Although production began to start this
month, recovery to full capacity is not expected until year-end. --
Results for the Agriculture & Nutrition segment for the second
half 2005 will be essentially flat with last year and show
percentage growth in the high-teens for the full year. However, for
the fourth quarter, results are expected to be below last year due
to the split of seasonal revenues and costs between the third and
fourth quarters. -- Finally, the base tax rate in fourth quarter
2005 is expected to be about 26 percent, the same as the 2005
year-to-date rate. While the full-year base tax rate in 2004 was
about 25 percent, the rate in the fourth quarter 2004 was only 20
percent. Taking these factors into account and recognizing the
company's ongoing pricing initiatives to offset rising energy and
ingredient costs, the company expects fourth quarter earnings to be
in a range of $.20 to $.25 per share. The share repurchase program
announced today is not expected to impact fourth quarter 2005
earnings per share. Use of Non-GAAP Measures Management believes
that measures of income excluding significant items ("non-GAAP"
information) are meaningful to investors because they provide
insight with respect to ongoing operating results of the company.
Such measurements are not recognized in accordance with generally
accepted accounting principles (GAAP) and should not be viewed as
an alternative to GAAP measures of performance. Reconciliations of
non-GAAP measures to GAAP are provided in Schedule E. DuPont is a
science company. Founded in 1802, DuPont puts science to work by
creating sustainable solutions essential to a better, safer,
healthier life for people everywhere. Operating in more than 70
countries, DuPont offers a wide range of innovative products and
services for markets including agriculture, nutrition, electronics,
communications, safety and protection, home and construction,
transportation and protective apparel. 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 documents
filed with the Securities and Exchange Commission by DuPont,
particularly its latest annual report on Form 10-K and quarterly
report on Form 10-Q, 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; seasonality of sales of agricultural products;
and severe weather events that cause business interruptions,
including plant and power outages, or disruptions in supplier and
customer operations. E. I. DU PONT DE NEMOURS AND COMPANY AND
CONSOLIDATED SUBSIDIARIES SCHEDULE A Three Months Ended Nine Months
Ended CONSOLIDATED INCOME STATEMENT September 30, September 30,
(Dollars in millions, 2005 2004 2005 2004 except per share) NET
SALES $5,870 $5,740 $20,812 $21,340 Other Income(a) 438 287 1,444
624 Total 6,308 6,027 22,256 21,964 Cost of Goods Sold and Other
Operating Charges(b) 4,709 4,567 14,980 15,779 Selling, General and
Administrative Expenses 751 681 2,424 2,329 Amortization of
Intangible Assets 57 58 171 168 Research and Development Expense
324 308 976 978 Interest Expense 140 86 364 252 Employee Separation
Costs and Asset Impairment Charges(c) - - - 433 Separation Charges
- Textiles & Interiors(d) (23) 102 (62) 630 Total 5,958 5,802
18,853 20,569 INCOME BEFORE INCOME TAXES AND MINORITY INTERESTS 350
225 3,403 1,395 Provision for (Benefit from) Income Taxes(e) 435
(117) 1,461 (114) Minority Interests in Earnings of Consolidated
Subsidiaries (3) 11 42 7 NET INCOME / (LOSS) $(82) $331 $1,900
$1,502 BASIC EARNINGS (LOSS) PER SHARE OF COMMON STOCK(f) $(.09)
$.33 $1.90 $1.50 DILUTED EARNINGS (LOSS) PER SHARE OF COMMON
STOCK(f) $(.09) $.33 $1.89 $1.49 DIVIDENDS PER SHARE OF COMMON
STOCK $.37 $.35 $1.09 $1.05 NOTES TO CONSOLIDATED INCOME STATEMENT
(a) Third quarter 2005 includes a gain of $31 from sale of certain
North American assets in the Safety & Protection segment.
Year-to-date 2005 includes a gain of $23 resulting from the
disposition of certain assets of DuPont Dow Elastomers LLC (DDE) to
The Dow Chemical Company, a $28 benefit related to interest on
certain prior year tax contingencies, and a gain of $48 resulting
from the sale of the company's equity interest in DuPont
Photomasks, Inc. Third quarter 2004 includes a $35 benefit related
to interest on certain prior year tax contingencies. Year-to-date
2004 includes a charge of $150 in the Performance Materials segment
to provide for the company's share of anticipated losses associated
with antitrust litigation matters. (b) During the third quarter
2005, the company recorded charges of approximately $146 for
damaged facilities, inventory write-offs and clean-up costs related
to Hurricanes Katrina and Rita. Pretax hurricane charges by segment
were $113 Coatings & Color Technologies, $11 Performance
Materials and $22 Safety & Protection. Year-to-date 2005
includes a charge of $34 related to the shutdown of an Elastomers
manufacturing facility in the United States. Third quarter 2004
includes a charge of $63 in the Electronic & Communication
Technologies segment associated with the proposed settlement of the
PFOA class action litigation in West Virginia. Year-to-date 2004
also includes a charge of $45 to establish the PFOA class action
litigation reserve, as well as a charge of $36 in the Coatings
& Color Technologies segment to provide for the settlement of
litigation in Refinish. (c) Year-to-date 2004 includes severance
charges of $312 related to 2,700 employees in the following
segments: Agriculture & Nutrition - $36; Coatings & Color
Technologies - $64; Electronic & Communication Technologies -
$42; Performance Materials - $45; Safety & Protection - $29;
and Other - $96. Year-to-date 2004 also includes charges of $42
related to the impairment of certain European manufacturing assets
in the Safety & Protection segment; $23 related to the shutdown
of manufacturing assets at a U.S. facility in the Performance
Materials segment; $29 to write off abandoned technology in the
Other segment; and $27 to reflect a decline in the value of an
investment security in the Electronic & Communication
Technologies segment. (d) During the third quarter 2005, the
company recorded a $23 benefit, primarily reflecting a gain on the
sale of an equity affiliate associated with the ongoing separation
of Textiles & Interiors. Year-to-date 2005 includes a net gain
of $39 relating to the disposition of three equity affiliates,
partly offset by other separation costs. Third quarter 2004
includes charges of $61 related to the separation of INVISTA and
$41 related to the write-down of an equity affiliate to fair market
value. Year-to-date 2004 includes an additional charge of $528,
consisting of $183 due primarily to an increase in the book value
of net assets sold and additional separation costs, and $345
related to an agreed upon reduction in sales price, and other
changes in estimates associated with the sale. (e) Third quarter
2005 includes charges of $320 for income taxes associated with the
repatriation of approximately $9.4 billion under the American Jobs
Creation Act (AJCA). Year-to-date 2005 includes a net tax benefit
of $24 related to certain prior year tax contingencies previously
reserved. Third quarter 2004 includes tax benefits of $165
primarily related to agreement on certain prior year audit issues
previously reserved. Year-to-date 2004 also reflects a $137 benefit
associated with recording an increase in deferred tax assets in two
European subsidiaries for their tax basis investment losses
recognized on local tax returns, and additional INVISTA-related tax
benefits of $322. (f) Earnings per share are calculated on the
basis of the following average number of common shares outstanding:
Three Months Ended Nine Months Ended September 30 September 30
Basic Diluted Basic Diluted 2005 995,464,491 995,464,491
995,928,331 1,002,579,254 2004 997,128,284 1,001,238,379
998,970,044 1,003,464,374 E. I. DU PONT DE NEMOURS AND COMPANY AND
CONSOLIDATED SUBSIDIARIES SCHEDULE B SIGNIFICANT ITEMS (Dollars in
millions, except per share) Pretax After-Tax ($ Per Share) 2005
2004 2005 2004 2005 2004 1st Quarter - Total $- $(531) $- $(296) $-
$(.30) 2nd Quarter - Total $ 118 $(661) $ 111 $(302) $ .11 $(.30)
3rd Quarter: Hurricane Charges(1) $(146) $- $(95) $- $(.10) $-
American Jobs Creation Act - - (320) - (.32) - Corporate
Tax-Related Items - 35 - 200 - .20 Textiles & Interiors
Separation(2) - (102) - (81) - (.08) Electronic & Communication
Technologies - Litigation - (63) - (41) - (.04) 3rd Quarter Total
$(146) $(130) $(415) $78 $(.42) $ .08 (1) Pretax hurricane charges
by segment were $113 Coatings & Color Technologies, $11
Performance Materials and $22 Safety & Protection. These
amounts do not include the estimated impact of hurricane-related
business interruptions. (2) Third quarter 2005 Textile &
Interiors Separation activities are not considered significant.
SIGNIFICANT ITEMS BY SEGMENT (Dollars in millions on pretax basis)
Three Months Ended Nine Months Ended September 30, September 30,
2005 2004 2005 2004 Agriculture & Nutrition $- $- $- $(36)
Coatings & Color Technologies (113) - (113) (100) Electronic
& Communication Technologies - (63) 48 (177) Performance
Materials (11) - (8) (218) Safety & Protection (22) - (22) (71)
Textiles & Interiors - (102) - (630) Other - - 39 (125) Total
(excluding Corporate) $(146) $(165) $(56) $(1,357) Note: See Notes
to Consolidated Income Statement for additional details. E. I. DU
PONT DE NEMOURS AND COMPANY AND CONSOLIDATED SUBSIDIARIES SCHEDULE
C CONSOLIDATED SEGMENT Three Months Ended Nine Months Ended
INFORMATION(1) September 30, September 30, (Dollars in millions)
2005 2004 2005 2004 SEGMENT SALES(2) Agriculture & Nutrition
$997 $969 $5,455 $5,246 Coatings & Color Technologies 1,545
1,476 4,721 4,453 Electronic & Communication Technologies 875
815 2,662 2,476 Performance Materials 1,539 1,672 5,160 4,894
Safety & Protection 1,268 1,185 3,938 3,443 Textiles &
Interiors N/A 286 N/A 2,995 Other 14 12 39 37 Total Segment Sales
6,238 6,415 21,975 23,544 Elimination of Transfers (68) (75) (228)
(483) Elimination of Equity Affiliate Sales (300) (600) (935)
(1,721) CONSOLIDATED NET SALES $5,870 $5,740 $20,812 $21,340 PRETAX
OPERATING INCOME (LOSS) (PTOI)(3) Agriculture & Nutrition(c)
$(134) $(183) $1,134 $894 Coatings & Color Technologies(b,c) 42
179 402 482 Electronic & Communication Technologies(a,b,c) 129
34 445 99 Performance Materials(a,b,c) 68 160 469 269
Pharmaceuticals 197 173 548 495 Safety & Protection(a,b,c) 256
216 770 610 Textiles & Interiors(d) N/A (116) N/A (479)
Other(c,d) (13) (25) (27) (231) Total Segment PTOI 545 438 3,741
2,139 Exchange Gains and Losses(4) 71 (22) 365 (111) Corporate
Expenses & Interest(a) (266) (191) (703) (633) INCOME BEFORE
INCOME TAXES AND MINORITY INTERESTS $350 $225 $3,403 $1,395 (1)
Certain reclassifications of segment data have been made to reflect
changes in organizational structure. Beginning in 2005, Textiles
& Interiors is no longer an operating segment of the company.
The remaining assets and charges related to separation activities
are reported under Other. (2) Includes transfers and pro rata share
of equity affiliate sales. (3) See respective Notes to Consolidated
Income Statement for additional information on significant items.
(4) Net after-tax exchange gains for third quarter 2005 and 2004
were $19 and $5, respectively. Gains and losses resulting from the
company's hedging program are largely offset by associated tax
effects. E. I. DU PONT DE NEMOURS AND COMPANY AND CONSOLIDATED
SUBSIDIARIES SCHEDULE D SELECTED INCOME STATEMENT DATA (Dollars in
millions, except per share) Three Months Ended Nine Months Ended
September 30 September 30 2005 2004 % Chg. 2005 2004 % Chg.
Consolidated Net Sales $5,870 $5,740 2% $20,812 $21,340 (2)%
Segment Sales 6,238 6,415 (3) 21,975 23,544 (7) Segment PTOI 545
438 24 3,741 2,139 75 EBIT* 451 270 67 3,615 1,582 129 EBITDA* 780
608 28 4,601 2,556 80 Income Before Income Taxes and Minority
Interests 350 225 56 3,403 1,395 144 EPS - Diluted (0.09) 0.33 N/M
1.89 1.49 27 * See Reconciliation of Non-GAAP measures (Schedule
E). SCHEDULE E RECONCILIATION OF NON-GAAP MEASURES (Dollars in
millions) Reconciliation of EBIT / EBITDA to Consolidated Income
Statement Three Months Ended Nine Months Ended September 30,
September 30, 2005 2004 2005 2004 Income Before Income Taxes and
Minority Interests $350 $225 $3,403 $1,395 Less: Minority Interest
in Earnings of Consolidated Subsidiaries(1) 2 (15) (41) (12) Add:
Net Interest Expense(2) 99 60 253 199 EBIT 451 270 3,615 1,582 Add:
Depreciation and Amortization(3) 329 338 986 974 EBITDA $780 $608
$4,601 $2,556 (1) Excludes income taxes. (2) Includes interest
expense plus amortization of capitalized interest less interest
income. (3) Excludes amortization of capitalized interest.
Reconciliation of Segment PTOI Three Months Ended September 30,
2005 2004 % Change Segment PTOI before Significant Items $691 $603
15 % Significant Items included in September PTOI (per Schedule B)
(146) (165) Segment PTOI $545 $438 24 % Reconciliation of Earnings
Per Share (EPS) Three Months Ended September 30, 2005 2004 % Change
Earnings Per Share before Significant Items $.33 $.25 32 %
Significant Items included in EPS $(.42) $.08 EPS (.09) .33 N/M
Reconciliation of Segment PTOI as Percent of Segment Sales Three
Months Ended September 30, 2005 2004 % change Segment PTOI before
Significant Items $691 $603 15% Pretax operating losses on divested
DTI, Photomasks and Elastomers businesses - 18 Segment PTOI
adjusted for portfolio changes $691 $621 11% Segment Sales $6,238
$6,415 (3)% Sales on divested DTI, Photomasks and Elastomers
businesses - (456) Segment Sales adjusted for portfolio changes
$6,238 $5,959 5% PTOI as Percent of Segment Sales 11.08% 10.42%
NOTE: The results presented above include gains on sales of assets
of $51 and $21 for third quarter 2005 and 2004, respectively.
Management estimates that third quarter 2005 segment PTOI was
negatively impacted by about $50 million due to hurricane-related
business interruptions. Reconciliation of Base Income Tax Rate to
Effective Income Tax Rate Three Months Ended Nine Months Ended
September 30, September 30, 2005 2004 2005 2004 Income Before
Income Taxes and Minority Interests $350 $225 $3,403 $1,395 Remove:
Significant Items - Charge/(Benefit) 146 130 28 1,322 Net Exchange
(Gains)/Losses (71) 22 (365) 111 Income Before Income Taxes,
Significant Items, Exchange Gains/ Losses and Minority Interests
$425 $377 $3,066 $2,828 Provision for (Benefit from) Income Taxes
$435 $(117) $1,461 $(114) Remove: (Expense)/Benefit Tax on
Significant Items (269) 208 (276) 802 Tax on Exchange Gains/Losses
(52) 27 (396) 45 Provision for Income Taxes, Excluding Taxes on
Significant Items and Exchange Gains/Losses $114 $118 $789 $733
Effective Income Tax Rate 124.3 % (52.2)% 42.9 % (8.2)% Base Income
Tax Rate 26.7 % 31.2 % 25.7 % 25.9 % DATASOURCE: DuPont CONTACT:
Michelle S. Reardon, +1-302-774-7447, Web site:
http://www.dupont.com/
Copyright
