DuPont Reports Q2 Operating Earnings Per Share of $1.17; Reaffirms Updated Full-Year Outlook

  DuPont Reports Q2 Operating Earnings Per Share of $1.17; Reaffirms Updated
                              Full-Year Outlook

PR Newswire

WILMINGTON, Del., July 22, 2014

WILMINGTON, Del., July 22, 2014 /PRNewswire/ --

Second Quarter Highlights

  oOperating earnings per share of $1.17 were down moderately from $1.28 per
    share last year, in-line with the company's expectations communicated in
    its June 26^th announcement. GAAP^1 earnings per share were $1.15 versus
    $1.10 last year.
  oRevenue was $9.7 billion versus $9.8 billion in the same period last year.
    Volume growth in Crop Protection, Nutrition & Health and most industrial
    businesses was offset by the impact of portfolio changes, a planned
    maintenance shutdown and lower corn seed volumes.
  oStrong operating earnings growth in the quarter was delivered by
    Industrial Biosciences (+37 percent), Nutrition & Health (+72 percent) and
    Safety & Protection (+22 percent).
  oThe strategic redesign initiative announced on June 26^th to reset the
    company's operating model is under way across all businesses and support
    functions.
  oThe Performance Chemicals separation remains on track for mid-2015.
  oThe company also announced today a 4 percent increase in its 3Q 2014
    dividend, its third increase in the past 27 months.

DuPont (NYSE: DD), a science company that brings world-class, innovative
products, materials and services to the global marketplace, today announced
second quarter 2014 operating earnings of $1.17 per share compared to $1.28
per share in the prior year. GAAP^1 earnings per share were $1.15 versus
$1.10 last year. Consolidated sales were $9.7 billion, 1 percent below last
year, reflecting portfolio changes, as price, volume and currency were in line
with the prior year period.

"While lower Agriculture earnings impacted our results this quarter, we
continue to see strong science-driven growth in this segment over the long
term. We are steadily advancing DuPont's strategy to build and strengthen
world-leading positions in agriculture and nutrition, bio-based industrials
and advanced materials," said DuPont Chair and CEO Ellen Kullman. "As we move
ahead with our Performance Chemicals separation, we also have launched the
initial stage of a broad initiative to reset our operating model. This work
is already gaining traction and will continue to expand, positioning DuPont to
drive greater growth and value with a simplified, streamlined support
structure and a smaller cost base - consistent with the purpose, strategy and
needs of the DuPont company, post-separation."

Global Consolidated Net Sales – 2nd Quarter

Second quarter 2014 net sales of $9.7 billion were 1 percent below last year
due to portfolio changes. Volume and USD prices were flat. The table below
shows second quarter regional sales and variances versus second quarter 2013.

                      Three Months Ended  Percentage Change Due to:
                      June 30, 2014
(Dollars in           $          %        Local  Currency  Volume  Portfolio/
millions)                        Change   Price   Effect            Other
U.S. & Canada         $         (3)      -       (1)       -       (2)
                      4,603
EMEA*                 2,119      2        (1)     4         (1)     -
Asia Pacific          2,089      -        (2)     (2)       5       (1)
Latin America         895        (4)      1       (2)       (2)     (1)
Total Consolidated    $         (1)      -       -         -       (1)
Sales                 9,706
* Europe, Middle East & Africa

Segment Sales – 2nd Quarter

The table below shows second quarter 2014 segment sales with related variances
versus second quarter 2013.

SEGMENT SALES                Three Months Ended      Percentage Change
(Dollars in millions)        June 30, 2014           Due to:
                             $             % Change  USD    Volume  Portfolio/
                                                     Price          Other
Agriculture                  $   3,615  -         1      (1)     -
Electronics &                617           (6)       (10)   4       -
Communications
Industrial Biosciences       317           4         2      2       -
Nutrition & Health           926           7         1      6       -
Performance Chemicals        1,696         (8)       (4)    -       (4)
Performance Materials        1,582         (2)       1      (1)     (2)
Safety & Protection          1,029         1         -      1       -
Other                        1
Total segment sales          9,783
Elimination of transfers     (77)
Consolidated net sales       $   9,706

Operating Earnings – 2nd Quarter

                                                             Change vs. 2013
(Dollars in millions)            2Q14           2Q13         $           %
Agriculture                     $   836     $   941    $ (105)    -11%
Electronics & Communications     89             95           (6)         -6%
Industrial Biosciences           59             43           16          37%
Nutrition & Health               105            61           44          72%
Performance Chemicals ^(1)       251            268          (17)        -6%
Performance Materials ^(1)       303            332          (29)        -9%
Safety & Protection              209            172          37          22%
Other                            (82)           (55)         (27)        -49%
Total segment operating          1,770          1,857        (87)        -5%
earnings ^(2)
Exchange gains & losses ^(3)     (51)           35           (86)        nm
Corporate expenses               (186)          (195)        9           5%
Interest expense                 (94)           (115)        21          18%
Operating earnings before        1,439          1,582        (143)       -9%
income taxes
Provision for income taxes on    (350)          (389)        39          nm
operating earnings
Net income attributable to       (4)            (4)          -           -
noncontrolling interests
Operating earnings             $ 1,085       $ 1,189     $ (104)    -9%
Operating earnings per share     $   1.17     $  1.28    $ (0.11)    -9%
(1) Prior period reflects the reclassifications of the Viton^®product line
from Performance Materials to Performance Chemicals.
(2) See Schedules B and C for listing of significant items and their
impact by segment.
(3) 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 in the second quarter which compares the current period
with the prior year. References to selling price are on a U.S. dollar basis,
including the impact of currency.

Agriculture – Operating earnings of $836 million declined $105 million, or 11
percent, on lower corn seed volumes, lower North America herbicide volumes and
higher seed inventory write-downs. This was partially offset by higher seed
prices, higher insecticide volumes, higher soybean volumes and lower seed
input costs.

Electronics & Communications – Operating earnings of $89 million declined $6
million, or 6 percent. Sales volumes grew in consumer electronics and
operating earnings benefited from productivity improvements. However, the
prior year included $20 million of OLED licensing income.

Industrial Biosciences – Operating earnings of $59 million increased $16
million, or 37 percent, from continued strong enzyme demand for animal
nutrition, food and ethanol production. This was partially offset by lower
sales for Sorona^®polymer for carpeting.

Nutrition & Health – Operating earnings of $105 million increased $44 million,
or 72 percent, from broad based volume growth and improved mix, lower raw
material costs, productivity gains and the absence of one-time costs in the
prior year.

Performance Chemicals – Operating earnings of $251 million were down $17
million, or 6 percent, due primarily to lower prices for refrigerants and
fluoropolymers, partially offset by productivity improvements.

Performance Materials – Operating earnings of $303 million decreased $29
million, or 9 percent. Gains from strong Performance Polymers volumes into
global automotive markets were offset by a scheduled maintenance shutdown at
the company's Orange, Texas ethylene unit. Absent that shutdown, segment
operating earnings would have increased.

Safety & Protection – Operating earnings of $209 million increased $37
million, or 22 percent, primarily due to higher volumes in Protection
Technologies, lower product costs and productivity improvements.

Outlook

The company reaffirms its recently updated outlook for full-year 2014
operating earnings of $4.00-$4.10 per share, an increase of 3 to 6 percent
from $3.88 per share earned in 2013, based on expected growth in global
industrial market demand. The company anticipates a strong second half in
2014 with operating earnings per share of $1.25 - $1.35, about 40 percent of
which is expected in the third quarter.

DuPont will hold a conference call and webcast on Tuesday, July 22, 2014, at
9:00 AM EDT to discuss this news release. The webcast can be accessed by
visiting the company's investor website (Events & Presentations) at
www.investors.dupont.com. A replay of the conference call webcast will be
available for 30 days by calling 1-630-652-3042, Passcode 37666079#. For
additional information see the investor center at http://www.dupont.com.

Use of Non-GAAP Measures

Management believes that certain non-GAAP measurements 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 GAAP and should not be viewed as an alternative to GAAP measures of
performance. Reconciliations of non-GAAP measures to GAAP are provided in
schedules A, C and D.

About DuPont

DuPont (NYSE: DD) has been bringing world-class science and engineering to the
global marketplace in the form of innovative products, materials, and services
since 1802. The company believes that by collaborating with customers,
governments, NGOs, and thought leaders we can help find solutions to such
global challenges as providing enough healthy food for people everywhere,
decreasing dependence on fossil fuels, and protecting life and the
environment. For additional information about DuPont and its commitment to
inclusive innovation, please visit http://www.dupont.com.

Forward-Looking Statements: This news release contains forward-looking
statements which may be identified by their use of words like "plans,"
"expects," "will," "believes," "intends," "estimates," "anticipates" or other
words of similar meaning. All statements that address expectations or
projections about the future, including statements about the company's growth
strategy, product development, regulatory approval, market position,
anticipated benefits of acquisitions, outcome of contingencies, such as
litigation and environmental matters, expenditures and financial results, are
forward-looking statements. Forward-looking statements are not guarantees of
future performance and are based on certain assumptions and expectations of
future events which may not be realized. Forward-looking statements also
involve risks and uncertainties, many of which are beyond the company's
control. Some of the important factors that could cause the company's actual
results to differ materially from those projected in any such forward-looking
statements are: fluctuations in energy and raw material prices; failure to
develop and market new products and optimally manage product life cycles;
significant litigation and environmental matters; failure to appropriately
manage process safety and product stewardship issues; changes in laws and
regulations or political conditions; global economic and capital markets
conditions, such as inflation, interest and currency exchange rates; business
or supply disruptions; security threats, such as acts of sabotage, terrorism
or war, weather events and natural disasters; ability to protect and enforce
the company's intellectual property rights; successful integration of acquired
businesses and separation of underperforming or non-strategic assets or
businesses and successful completion of the proposed spinoff of the
Performance Chemicals segment including ability to fully realize the expected
benefits of the proposed spinoff. The company undertakes no duty to update
any forward-looking statements as a result of future developments or new
information.



E.I. du Pont de Nemours and Company

Consolidated Income Statements

(Dollars in millions, except per share amounts)
SCHEDULE A
                             Three Months Ended              Six Months Ended

                             June 30,                        June 30,
                             2014           2013             2014            2013
Net sales                    $   9,706      $  9,844         $   19,834      $  20,252
Other income, net ^(a)       408            159              425             251
Total                        10,114         10,003           20,259          20,503
Cost of goods sold           5,999          6,056            11,999          12,249
Other operating charges ^    825            942              1,622           1,854
(a)
Selling, general and         948            983              1,873           1,966
administrative expenses
Research and development     545            542              1,063           1,063
expense
Interest expense             94             115              197             232
Employee separation and      263            —                263             —
asset related charges ^(a)
Total                        8,674          8,638            17,017          17,364
Income from continuing
operations before income     1,440          1,365            3,242           3,139
taxes
Provision for income taxes
on continuing operations     366            335              723             722
^(a)
Income from continuing
operations after income      1,074          1,030            2,519           2,417
taxes
Income from discontinued     —              4                —               1,972
operations after taxes
Net income                   1,074          1,034            2,519           4,389
Less: Net income
attributable to              4              4                10              11
noncontrolling interests
Net income attributable to   $   1,070      $  1,030         $   2,509       $  4,378
DuPont
Basic earnings per share of
common stock ^(b):
Basic earnings per share of
common stock from continuing $   1.16       $  1.11          $   2.72        $  2.59
operations
Basic earnings per share of
common stock from            —              —                —               2.13
discontinued operations
Basic earnings per share of  $   1.16       $  1.11          $   2.72        $  4.73
common stock
Diluted earnings per share
of common stock ^(b):
Diluted earnings per share
of common stock from         $   1.15       $  1.10          $   2.70        $  2.58
continuing operations
Diluted earnings per share
of common stock from         —              —                —               2.12
discontinued operations
Diluted earnings per share   $   1.15       $  1.11          $   2.70        $  4.69
of common stock
Dividends per share of       $   0.45       $  0.45          $   0.90        $  0.88
common stock
Average number of shares
outstanding used in earnings
per share (EPS) calculation:
 Basic                      918,684,000    922,684,000      921,058,000     925,500,000
 Diluted                    925,587,000    929,480,000      928,145,000     932,311,000
^(a) See Schedule B for
detail of significant items.
^(b) The sum of the individual earnings per share amounts may not equal
the total due to rounding.
Reconciliation
of Non-GAAP
Measures
Summary of
Earnings
Comparison
               Three Months Ended                  Six Months Ended

               June 30,                            June 30,
                                      %                                             %
               2014      2013                      2014            2013
                                      Change                                        Change
Income from
continuing
operations     $ 1,074   $ 1,030      4 %          $  2,519        $  2,417         4 %
after income
taxes (GAAP)
Less:
Significant
items benefit
(charge)
included in
income from
continuing     8         (78)                      (4)             (58)


operations
after income
taxes (per
Schedule B)
Non-operating
pension/OPEB
costs included
in income from
continuing     (23)      (85)                      (44)            (184)

 operations
after income
taxes
Net income
attributable
to             4         4                         10              11
noncontrolling
interest
Operating      $ 1,085   $ 1,189      (9)%         $  2,557        $  2,648         (3)%
earnings
EPS from
continuing     $ 1.15    $ 1.10       5 %          $  2.70         $  2.58          5 %
operations
(GAAP)
Significant
items (charge)
benefit        0.01      (0.08)                    —               (0.06)
included in
EPS (per
Schedule B)
Non-operating
pension/OPEB   (0.03)    (0.10)                    (0.05)          (0.20)
costs included
in EPS
Operating EPS  $ 1.17    $ 1.28       (9)%         $  2.75         $  2.84          (3)%



E.I. du Pont de Nemours and Company

Condensed Consolidated Balance Sheets

(Dollars in millions, except per share amounts)
Schedule A (continued)
                                                      June 30,   December 31,

                                                      2014       2013
Assets
Current assets
Cash and cash equivalents                             $ 4,174    $   8,941
Marketable securities                                 173        145
Accounts and notes receivable, net                    8,896      6,047
Inventories                                           6,940      8,042
Prepaid expenses                                      252        206
Deferred income taxes                                 894        775
Assets held for sale                                  —          228
Total current assets                                  21,329     24,384
Property, plant and equipment, net of accumulated
depreciation
                                                      13,035     12,993
 (June 30, 2014- $19,961; December 31, 2013 -
$19,438)
Goodwill                                              4,686      4,713
Other intangible assets                               4,885      5,096
Investment in affiliates                              982        1,011
Deferred income taxes                                 2,420      2,353
Other assets                                          977        949
Total                                                 $ 48,314   $   51,499
Liabilities and Equity
Current liabilities
Accounts payable                                      $ 3,542    $   5,180
Short-term borrowings and capital lease obligations   2,506      1,721
Income taxes                                          763        247
Other accrued liabilities                             4,228      6,219
Total current liabilities                             11,039     13,367
Long-term borrowings and capital lease obligations    9,292      10,741
Other liabilities                                     9,931      10,179
Deferred income taxes                                 924        926
Total liabilities                                     31,186     35,213
Commitments and contingent liabilities                —          —
Stockholders' equity
Preferred stock                                       237        237
Common stock, $0.30 par value; 1,800,000,000 shares
authorized;
                                                      301        304
 Issued at June 30, 2014 - 1,003,546,000; December
31, 2013 - 1,014,027,000)
Additional paid-in capital                            11,168     11,072
Reinvested earnings                                   17,572     16,784
Accumulated other comprehensive loss                  (5,453)    (5,441)
Common stock held in treasury, at cost (87,584,000
shares at June 30, 2014 and 87,041,000 shares at      (6,762)    (6,727)
December 31, 2013)
Total DuPont stockholders' equity                     17,063     16,229
Noncontrolling interests                              65         57
Total equity                                          17,128     16,286
Total                                                 $ 48,314   $   51,499

E.I. du Pont de Nemours and Company

Condensed Consolidated Statement of Cash Flows

(Dollars in millions)
SCHEDULE A (continued)
                                                        Six Months Ended

                                                        June 30,
                                                        2014        2013
Total Company
Net income                                              $ 2,519     $ 4,389
Adjustments to reconcile net income to cash used for
operating activities:
Depreciation                                            635         644
Amortization                                            245         193
Other operating charges and credits - net               631         185
Gain on sale of business                                (398)       (2,682)
Contributions to pension plans                          (168)       (176)
Change in operating assets and liabilities - net        (5,535)     (5,184)
Cash used for operating activities                      (2,071)     (2,631)
Investing activities
Purchases of property, plant and equipment              (781)       (757)
Investments in affiliates                               (23)        (31)
Proceeds from sale of business - net                    639         4,815
Proceeds from sales of assets - net                     10          88
Net increase in short-term financial instruments        (22)        (99)
Forward exchange contract settlements                   (63)        58
Other investing activities - net                        8           8
Cash (used for) provided by investing activities        (232)       4,082
Financing activities
Dividends paid to stockholders                          (836)       (823)
Net (decrease) increase in borrowings                   (631)       2,369
Repurchase of common stock                              (1,061)     (1,000)
Proceeds from exercise of stock options                 214         384
Other financing activities - net                        (76)        74
Cash (used for) provided by financing activities        (2,390)     1,004
Effect of exchange rate changes on cash                 (74)        (149)
(Decrease) increase in cash and cash equivalents        (4,767)     2,306
Cash and cash equivalents at beginning of period        8,941       4,379
Cash and cash equivalents at end of period              $ 4,174     $ 6,685
Reconciliation of Non-GAAP Measure
Calculation of Free Cash Flow - Total Company
                                                        Six Months Ended

                                                        June 30,
                                                        2014        2013
Cash used for operating activities                      $ (2,071)   $ (2,631)
Purchases of property, plant and equipment              (781)       (757)
Free cash flow                                          $ (2,852)   $ (3,388)



E.I. du Pont de Nemours and Company

Schedule of Significant Items from Continuing Operations

(Dollars in millions, except per share amounts)
SCHEDULE B
SIGNIFICANT ITEMS FROM CONTINUING OPERATIONS
                  Pre-tax               After-tax         ($ Per Share)
                  2014        2013      2014     2013     2014       2013
1st Quarter
Separation
transaction costs $  (16)     $ —       $ (12)   $ —      $ (0.01)   $ —
^(a)
Customer claims   —           (35)      —        (22)     —          (0.02)
charge ^(e)
Income tax items  —           —         —        42       —          0.04
^ (f)
1st Quarter -     $  (16)     $ (35)    $ (12)   $ 20     $ (0.01)   $ 0.02
Total
2nd Quarter
Separation
transaction costs $  (35)     $ —       $ (26)   $ —      $ (0.03)   $ —
^(a)
Gain on sale of   391         —         273      —        0.30       —
business ^ (b)
Restructuring     (263)       —         (182)    —        (0.20)     —
charge ^ (c)
Venezuela         (58)        —         (57)     —        (0.06)     —
devaluation ^(d)
Customer claims   —           (80)      —        (51)     —          (0.05)
charge ^(e)
Income tax items  —           (11)      —        (27)     —          (0.03)
^ (g)
2nd Quarter -     $  35       $ (91)    $ 8      $ (78)   $ 0.01     $ (0.08)
Total
Year-to-date      $  19       $ (126)   $ (4)    $ (58)   $ —        $ (0.06)
Total
          Second and first quarter 2014 included a charge of $(35) and $(16),
          respectively, recorded in Other operating charges associated with
(a)       transaction costs related to the separation of the Performance
          Chemicals segment. For full-year 2014, costs associated with the
          separation are expected to be approximately $(170), $(0.13) per
          share.
          Second quarter 2014 included a gain of $391 recorded in Other
(b)       income, net associated with the sale of Glass Laminating
          Solutions/Vinyls in the Performance Materials segment.
          Second quarter 2014 included a $(263) restructuring charge recorded
          in Employee separation/asset related charges, net, consisting of
          $(166) of severance and related benefit costs, $(94) of asset shut
          downs, and $(3) of other non-personnel charges as a result of the
          company's plan to reduce residual costs associated with the
(c)       separation of the Performance Chemicals segment and to improve
          productivity across all businesses and functions. Pre-tax charges
          by segment are: Agriculture - $(47), Electronics & Communications -
          $(68), Industrial Biosciences - $(2), Nutrition & Health - $(8),
          Performance Chemicals - $(19), Performance Materials - $(29), Safety
          & Protection - $(31), Other - $(2), and Corporate expenses - $(57).
          Second quarter 2014 included a charge of $(58) recorded in Other
(d)       income, net associated with remeasuring the company's Venezuelan net
          monetary assets from the official exchange rate to the SICAD II
          exchange system.
          Second and first quarter 2013 included charges of $(80) and $(35),
          respectively, recorded in Other operating charges associated with
          resolving claims related to the use of the Imprelis® herbicide. The
          company has an applicable insurance program with a deductible equal
          to the first $100 of costs and expenses. The insurance program
          limits are $725 for costs and expenses in excess of the $100. The
(e)       company has submitted and will continue to submit requests for
          payment to its insurance carriers for costs associated with this
          matter. To date, the company has recognized and received $73 of
          insurance recoveries from its insurance carriers and continues to
          seek recovery although the timing and outcome remain uncertain. The
          company had accruals of $364 related to these claims at June 30,
          2014. These charges relate to the Agriculture segment.
          First quarter 2013 included a net tax benefit of $42 consisting of a
(f)       $68 benefit for the 2013 extension of certain U.S business tax
          provisions offset by a ($26) charge related to the global
          distribution of Performance Coatings cash proceeds.
          Second quarter 2013 includes a charge of $(11) in Other income, net
          related to interest on a prior year tax position. Second quarter
(g)       2013 also includes a charge of $(49) associated with a change in
          accrual for a prior year tax position offset by a $33 benefit for an
          enacted tax law change.

E.I. du Pont de Nemours and Company

Consolidated Segment Information

(Dollars in millions)
SCHEDULE C
                      Three Months Ended           Six Months Ended

                      June 30,                     June 30,
SEGMENT SALES ^ (1)   2014           2013          2014           2013
Agriculture           $   3,615      $  3,631      $  8,009       $  8,300
Electronics &         617            653           1,197          1,269
Communications
Industrial            317            304           618            593
Biosciences
Nutrition & Health    926            865           1,787          1,733
Performance Chemicals 1,696          1,837         3,287          3,480
^(2)
Performance Materials 1,582          1,615         3,116          3,116
^(2)
Safety & Protection   1,029          1,017         1,976          1,924
Other                 1              3             2              4
Total Segment sales   9,783          9,925         19,992         20,419
Elimination of        (77)           (81)          (158)          (167)
transfers
Consolidated net      $   9,706      $  9,844      $  19,834      $  20,252
sales
^(1) Sales for the reporting segments include transfers.
^(2) Prior periods reflect the reclassifications of the Viton^® product line
from Performance Materials to Performance

 Chemicals.

E.I. du Pont de Nemours and Company

Consolidated Segment Information

(Dollars in millions)
SCHEDULE C
(continued)
                         Three Months Ended          Six Months Ended

                         June 30,                    June 30,
INCOME FROM CONTINUING   2014          2013          2014          2013
OPERATIONS (GAAP)
Agriculture              $  789        $  861        $  2,231      $  2,342
Electronics &            21            95            96            144
Communications
Industrial               57            43            113           84
Biosciences
Nutrition & Health       97            61            190           137
Performance Chemicals    232           268           438           524
^ (3)
Performance Materials    665           332           958           619
^(3)
Safety & Protection      178           172           353           310
Other                    (84)          (55)          (176)         (142)
Total Segment PTOI       1,955         1,777         4,203         4,018
Corporate expenses       (278)         (206)         (495)         (420)
Interest expense         (94)          (115)         (197)         (232)
Non-operating            (34)          (126)         (64)          (273)
pension/OPEB costs
Net exchange (losses)    (109)         35            (205)         46
gains ^(1)
Income before income
taxes from continuing    $  1,440      $  1,365      $  3,242      $  3,139
operations
                         Three Months Ended          Six Months Ended

                         June 30,                    June 30,
SIGNIFICANT ITEMS BY
SEGMENT (PRE-TAX)        2014          2013          2014          2013
^(2)
Agriculture              $  (47)       $  (80)       $  (47)       $  (115)
Electronics &            (68)          —             (68)          —
Communications
Industrial               (2)           —             (2)           —
Biosciences
Nutrition & Health       (8)           —             (8)           —
Performance Chemicals    (19)          —             (19)          —
^(3)
Performance Materials    362           —             362           —
^(3)
Safety & Protection      (31)          —             (31)          —
Other                    (2)           —             (2)           —
Total significant        185           (80)          185           (115)
items by segment
Corporate expenses       (92)          (11)          (108)         (11)
Net exchange (losses)    (58)          —             (58)          —
gains ^(1)
Total significant
items before income      $  35         $  (91)       $  19         $  (126)
taxes
                         Three Months Ended          Six Months Ended

                         June 30,                    June 30,
OPERATING EARNINGS       2014          2013          2014          2013
Agriculture              $  836        $  941        $  2,278      $  2,457
Electronics &            89            95            164           144
Communications
Industrial               59            43            115           84
Biosciences
Nutrition & Health       105           61            198           137
Performance Chemicals    251           268           457           524
^(3)
Performance Materials    303           332           596           619
^(3)
Safety & Protection      209           172           384           310
Other                    (82)          (55)          (174)         (142)
Total segment            1,770         1,857         4,018         4,133
operating earnings
Corporate expenses       (186)         (195)         (387)         (409)
Interest expense         (94)          (115)         (197)         (232)
Operating earnings
before income taxes      1,490         1,547         3,434         3,492
and exchange gains
(losses)
Net exchange (losses)    (51)          35            (147)         46
gains ^(1)
Operating earnings       $  1,439      $  1,582      $  3,287      $  3,538
before income taxes
^(1) See Schedule D for additional information on exchange gains and losses.
^(2) See Schedule B for detail of significant items.
^(3) Prior periods reflect the reclassifications of the Viton^® product line
from Performance Materials to Performance Chemicals.

E.I. du Pont de Nemours and Company

Reconciliation of Non-GAAP Measures

(Dollars in millions, except per share amounts)
SCHEDULE D
Reconciliations of Adjusted EBIT / EBITDA to Consolidated Income
Statements
                             Three Months Ended        Six Months Ended

                             June 30,                  June 30,
                             2014            2013      2014        2013
Income from continuing
operations before income     $   1,440       $ 1,365   $  3,242    $  3,139
taxes
Add: Significant items       (35)            91        (19)        126
before income taxes
Add: Non-operating           34              126       64          273
pension/OPEB costs
Operating earnings before    $   1,439       $ 1,582   $  3,287    $  3,538
income taxes
Less: Net income
attributable to              4               4         10          11
noncontrolling interests
Add: Interest expense       94              115       197         232
Adjusted EBIT from           1,529           1,693     3,474       3,759
operating earnings
Add: Depreciation and        443             404       880         837
amortization
Adjusted EBITDA from         $   1,972       $ 2,097   $  4,354    $  4,596
operating earnings
Reconciliation of Operating Earnings Per Share (EPS) Outlook
The reconciliation below represents the company's outlook on an operating
earnings basis, defined as earnings from continuing operations
excluding significant items and non-operating pension/OPEB costs.
                             Second Half               Year Ended December 31,
                             2014 Outlook              2014        2013 Actual
                                                       Outlook
Operating EPS                $1.25 - $1.35             $4.00 -    $  3.88
                                                       $4.10
Significant items
Separation transaction       (0.09)                    (0.13)
costs
Gain on sale of                                        0.30
business
Restructuring charge                                   (0.20)
Venezuela devaluation                                  (0.06)
Tax items                                                          0.02
Customer claims charges                                            (0.24)
Restructuring                                                      —
charge/adjustments
Litigation settlement                                              (0.05)
Asset impairment charge                                            (0.18)
Non-operating
pension/OPEB costs -         (0.05)                    (0.10)      (0.39)
estimate
EPS from continuing          $1.11 - $1.21             $3.81 -     $  3.04
operations (GAAP)                                      $3.91

E.I. du Pont de Nemours and Company

Reconciliation of Non-GAAP Measures

(Dollars in millions, except per share amounts)
SCHEDULE D (continued)
Exchange Gains/Losses
on Operating Earnings
The company routinely uses forward exchange contracts to offset its net
exposures, by currency, related to the foreign currency denominated monetary
assets and liabilities of its operations. The objective of this program is to
maintain an approximately balanced position in foreign currencies in order to
minimize, on an after-tax basis, the effects of exchange rate changes. The net
pre-tax exchange gains and losses are recorded in Other income, net and the
related tax impact is recorded in Provision for (benefit from) income taxes on
the Consolidated Income Statements.
                          Three Months Ended            Six Months Ended

                          June 30,                      June 30,
                          2014           2013           2014         2013
Subsidiary/Affiliate
Monetary Position Gain
(Loss)
Pre-tax exchange gains
(losses) (includes        $  19          $  (55)        $  (31)      $ (150)
equity affiliates)
Local tax benefits        (28)           16             (16)         19
(expenses)
Net after-tax impact
from subsidiary           $  (9)         $  (39)        $  (47)      $ (131)
exchange gains (losses)
Hedging Program Gain
(Loss)
Pre-tax exchange gains    $  (70)        $  90          $  (116)     $ 196
(losses)
Tax benefits (expenses)   25             (32)           41           (69)
Net after-tax impact
from hedging program      $  (45)        $  58          $  (75)      $ 127
exchange gains (losses)
Total Exchange Gain
(Loss)
Pre-tax exchange gains    $  (51)        $  35          $  (147)     $ 46
(losses)
Tax benefits (expenses)   (3)            (16)           25           (50)
Net after-tax exchange    $  (54)        $  19          $  (122)     $ (4)
gains (losses) ^(1)
As shown above, the "Total Exchange Gain (Loss)" is the sum of the
"Subsidiary/Affiliate Monetary Position Gain (Loss)" and the "Hedging Program
Gain (Loss)."
^(1) The above Net after-tax exchange gains (losses) excludes gains (losses)
attributable to discontinued operations of $(5) for the six months ended June
30, 2013.
Reconciliation of Base Income Tax Rate to Effective Income Tax Rate
Base income tax rate is defined as the effective income tax rate less the
effect of exchange gains (losses), as defined above, significant items and
non-operating pension/OPEB costs.
                          Three Months Ended            Six Months Ended

                          June 30,                      June 30,
                          2014           2013           2014         2013
Income from continuing
operations before         $  1,440       $  1,365       $  3,242     $ 3,139
income taxes
Add: Significant
items - (benefit)         (35)           91             (19)         126
charge ^(2)

Non-operating             34             126            64           273
pension/OPEB costs
Less: Net exchange       (51)           35             (147)        46
(losses) gains
Income from continuing
operations before income
taxes, significant items,
 exchange gains
(losses), and             $  1,490       $  1,547       $  3,434     $ 3,492
non-operating
pension/OPEB costs
Provision for income
taxes on continuing       $  366         $  335         $  723       $ 722
operations
Add: Tax benefits on     (27)           13             (23)         68
significant items
 Tax benefits on
non-operating             11             41             20           89
pension/OPEB costs
 Tax benefits on (3)            (16)           25           (50)
exchange gains/losses
Provision for income
taxes on operating        $  347         $  373         $  745       $ 829
earnings, excluding
exchange gains (losses)
Effective income tax      25.4      %    24.5      %    22.3      %  23.0    %
rate
Significant items
effect and
non-operating             (1.1)%         0.1       %    (0.4)%       1.8     %
pension/OPEB costs
effect
Tax rate, from continuing
operations, before
significant items and     24.3      %    24.6      %    21.9      %  24.8    %
non-operating
pension/OPEB costs
Exchange gains (losses)   (1.0)%         (0.5)%         (0.2)%       (1.1)%
effect
Base income tax rate
from continuing           23.3      %    24.1      %    21.7      %  23.7    %
operations
^(2) See Schedule B for detail of significant items.





SOURCE DuPont

Website: http://www.dupont.com
Contact: Media Contact: Dan Turner, 302-774-4005, daniel.a.turner@dupont.com;
Investor Contact: 302-774-4994
 
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