Bookmark 01-29-2015

DuPont Plans to Return Proceeds from Chemours Spinoff to Shareholders

Ellen Kullman, Chair of the Board and Chief Executive Officer at DuPont (figure: DuPont)

DuPont, Wilmington, DE/USA, announced fourth quarter 2014 operating earnings of USD 0.71 per share compared to USD 0.59 per share in the prior year. Fourth quarter results reflect a 20% increase in operating earnings per share year-over-year realized from a number of company actions, including strategic portfolio initiatives, continued productivity improvements related to the company’s operational redesign, reductions in performance-based compensation, and share repurchases.

Sales were USD 7.4 billion versus USD 7.7 billion in the same period last year, down 5% primarily due to portfolio changes and negative currency impacts. Volume grew in all segments except for Electronics & Communications. Segment operating earnings were $1,014 million, reflecting disciplined execution despite macroeconomic headwinds, including a weaker Ag economy and the impact from a stronger U.S. dollar.

For the full year 2014, DuPont delivered operating earnings of USD 4.01 per share compared to USD 3.88 per share in the prior year. Sales were USD 34.7 billion versus USD 35.7 billion last year, down 3% due to weakness in Ag markets,
portfolio changes and negative currency impacts. A 1% increase in volume was offset by price. Segment operating earnings of USD 6.0 billion increased 1 % versus USD 5.9 billion last year as the negative impact of portfolio changes and currency were more than offset by continued productivity improvements, lower performance-based compensation and gains from business divestitures.

"Our 2014 results demonstrate continued progress on our strategic plan to deliver higher growth and higher value, including ongoing portfolio refinement through several strategic portfolio actions and steady progress on the planned Chemours separation, substantial cost reductions from our operational redesign and productivity initiatives, and the continued return of capital to our shareholders through USD 2 billion of share repurchases and an increase in the common stock dividend of 4 percent," Ellen Kullman, Chair of the Board & Chief Executive Officer, said.

Expectations for Return of Capital from Chemours One-Time Dividend

The company has increased its cost reduction commitment from its operational redesign by approximately USD 300 million to at least USD 1.3 billion of total expected savings by 2017. Additionally, by the end of 2015, the company now expects annual run-rate savings of approximately USD 1 billion, significantly ahead of its previously announced schedule.

In addition the company said it expects to return all or substantially all of the one-time dividend proceeds from Chemours to DuPont shareholders via share repurchases over the 12 to 18 months following the separation of Chemours. Based on the target BB credit rating of Chemours, this amount is anticipated to be approximately USD 4 billion, pending the final credit ratings and underlying business conditions for Chemours.

"In 2015, we remain focused on generating superior returns for our shareholders, including through return of capital from the expected Chemours dividend, while positioning DuPont for our next stage of growth", Kullman said.

The separation of the Performance Chemicals segment from DuPont remains on track to be completed by mid-2015. Following its separation from DuPont, Chemours will be a new, publicly traded global leader in titanium dioxide, fluoroproducts and chemical solutions. The name reflects a focus on the science of chemistry and the heritage of the du Pont family origins in Nemours, France.

As announced in 2014, DuPont Executive Vice President Mark P. Vergnano will become President and Chief Executive Officer of Chemours. Mark E. Newman will serve as senior vice president and chief financial officer. BC Chong and Thierry F.J. Vanlancker will continue to lead the Titanium Technologies and the Fluoroproducts businesses, respectively. Chemours will have approximately 9,100 employees, 37 production facilities in 12 countries, and will serve over 5,000 customers worldwide.