DuPont Lowers Earnings Guidance for Fourth Quarter 2005
Company cites greater than anticipated business disruptions from hurricanes and lower than expected operating performance for certain businesses
WILMINGTON, Del., January 11, 2006, DuPont today lowered its earnings guidance for fourth quarter 2005 to reflect higher than anticipated disruptions in operations, partly associated with impacts from Hurricanes Katrina and Rita, and lower than expected performance focused primarily in three of the company’s businesses.
On Oct. 26, 2005, the company provided fourth quarter earnings per share guidance of $.20 to $.25. DuPont now estimates that earnings in the fourth quarter will be reduced by approximately $200 million in pretax operating income (PTOI) from the low end of its previously communicated guidance, equally attributable to:
* Operational disruptions from (1) the prolonged power, logistics and product supply disruptions in the Gulf Coast region following Hurricanes Katrina and Rita, and; (2) temporary unplanned production interruptions at three of the company’s plants in Brazil, the Netherlands and the United States.
* Reduction in PTOI from a combination of lower than expected sales and higher than expected costs primarily in crop protection chemicals, performance coatings and surfaces.
In addition, preliminary data indicate that the company’s effective tax rate for the year 2005 will be lower than the 26 percent rate previously estimated. This will partially offset the adverse effects of the above items, resulting in fourth quarter earnings of approximately $.10 per share.
The company has scheduled an Investor Conference Call at 9:00 a.m. (EST) today to address this announcement. The call will be webcast live at www.dupont.com or can be accessed by calling 973-633-1010 at least 15 minutes prior to the call and ask for reservation #12439.
DuPont will report fourth quarter and full-year earnings on Jan. 24, 2006, and will host a conference call and webcast for shareholders and investors at 9:00 a.m. (EST) that will be webcast. See www.dupont.com for further details.
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 apparel.
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