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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