Mais conteúdo relacionado Semelhante a du pont 4Q08 Conference Call Slides (20) du pont 4Q08 Conference Call Slides1. DuPont
4Q 2008 Earnings Conference Call
January 27, 2009
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E. I. du Pont de Nemours and Company. © 2009 DuPont. All rights reserved.
2. 2
Regulation G
The attached charts include company information that does not conform to generally accepted accounting
principles (GAAP). Management believes that an analysis of this data is meaningful to investors because it
provides insight with respect to ongoing operating results of the company and allows investors to better
evaluate the financial results of the company. These measures should not be viewed as an alternative to
GAAP measures of performance. Furthermore, these measures may not be consistent with similar
measures provided by other companies.
This data should be read in conjunction with the company’s fourth quarter earnings news release dated
January 27, 2009, which will be furnished to the SEC on Form 8-K. Reconciliations of non-GAAP measures
to GAAP results are available on the Investor Center website at www.dupont.com.
Forward Looking Statements
During the course of this presentation we may make forward-looking statements or provide forward-looking
information. All statements that address expectations or projections about the future are forward-looking
statements. Some of these statements include words such as quot;expects,quot; quot;anticipates,” quot;plans,quot; quot;intends,quot;
quot;projects,quot; and quot;indicates.” Although they reflect our current expectations, these statements are not
guarantees of future performance, but involve a number of risks, uncertainties, and assumptions. Some of
those risk factors include economic conditions, competitive pressures, challenges associated with research
and development, market acceptance of new products, and regulatory approval. We urge you to review
DuPont's SEC filings, particularly its latest annual report on Form 10-K and quarterly report on Form 10-Q,
for a discussion of some of the factors which could cause actual results to differ materially.
The Company does not undertake to update any forward-looking statements as a result of future
developments or new information.
© 2009 E.I. du Pont de Nemours and Company. All Rights Reserved.
3. 3
4Q & Full Year 2008 Financial Highlights
$ Billions Except EPS
4Q Change 2008 Change
EPS
Reported ($.70) $2.20
Underlying* ($.28) (149%) $2.78 (15%)
Segment Pre-Tax ($.1) (106%) $4.4 (14%)
Operating Income/(Loss)*
Consolidated Net Sales $5.8 (17%) $30.5 4%
(20%) (5%)
Volume
7% 7%
Local prices
(3%) 3%
Currency impact
(1%) (1%)
Portfolio Chg & Other
4Q08 4Q07 2008 2007
Base Tax Rate 45.2% 17.9% 20.4% 23.9%
* Excludes significant items. See Schedule B in news release for a list of significant items. See Schedule C in
news release for detailed reconciliations of non-GAAP measures. © 2009 E.I. du Pont de Nemours and Company. All Rights Reserved.
4. 4
Global Sales Regional Highlights
4Q 2008 Sales Distribution 4Q 2008 Sales Growth
Developed
Europe Region %
Emerging
23% Asia
Emerging
9%
EMEA Worldwide (17)
6% Developed
Asia U.S. (15)
10%
Non-U.S. (17)
Canada
3% Emerging Markets * (16)
Latin
U.S. (19)
Emerging Asia
America
34%
15% (26)
Emerging EMEA
(10)
Latin America
*Refer to the company’s website for a definition of ‘emerging markets’.
© 2009 E.I. du Pont de Nemours and Company. All Rights Reserved.
5. 5
Global Sales Segment Highlights*
4Q 2008 Sales Distribution 4Q 2008 Sales Growth
S&P Port-
Total USD
Ag & Segments Vol. folio
22% % Price
Chg.
Nutrition
21% Ag & Nutrition (2) 8 (9) (1)
Coatings & Color
(21) 1 (22) 0
Technologies
Electronic &
PM Communication (13) 1 (15) 1
C&CT
21% Technologies
22%
Performance
(30) 3 (32) (1)
Materials
Safety &
E&CT (10) 7 (15) (2)
Protection
14%
*Segment sales includes intercompany transfers © 2009 E.I. du Pont de Nemours and Company. All Rights Reserved.
6. 6
4Q 2008 EPS Waterfall
$1.20
($0.48)
$0.44
$0.80
($0.55)
$.60
$0.40 Reported
EPS*
$.57
Underlying
($0.21)
EPS
$0.00
($.28)
$0.09 ($0.07)
($0.04)
$0.02 ($0.05) Underlying
EPS
($.70)
-$0.40
Reported
EPS**
-$0.80
4Q07 Local Price Variable Volum e Low er Fixed Costs Currency Taxes Exchange Other 4Q08
Costs Capacity Loss
Utilization
* Reported 4Q07 EPS of $.60 includes a $.03 per share benefit for significant items.
** Reported 4Q08 EPS loss of $.70 includes a $.42 per share charge for significant items.
See schedule B in the news release for a list of significant items. © 2009 E.I. du Pont de Nemours and Company. All Rights Reserved.
7. 7
Strong Balance Sheet
Ample liquidity CP Balance CP Rate
$4 8%
• $3.7B in cash & investment
12/31/08, ~$.3B in CP, $2.7B in
Avg Cost of CP Borrowing
untapped credit lines
$ Billion
Low funding cost $2 4%
• A/A2 Long Term Credit Rating &
A1/P1 Short Term Credit Rating
Taking actions to maintain our
strong position $0 0%
4Q07 1Q08 2Q08 3Q08 4Q08
1/26/2009 DUPONT CONFIDENTIAL
8. 8
2009 Earnings & Cash Guidance
1Q EPS Outlook
Actions $1.31
$.50-$.70
• Deliver cost and capital productivity $1.00
• Capture growth & value; agriculture $0.50
markets
$0.00
• Disciplined pricing on science-based
1Q08 1Q09E
offerings
• Leveraging our leading positions in
Full Year Outlook
multiple end markets
$2.78 $2.00-$2.50
Challenges $3
• Global economic conditions & visibility in $2
many end markets
$1
• Pension non-cash earnings impact
• Currency $0
2008 2009E
2009 $2.5 Billion in Free Cash Flow Confirmed
© 2009 E.I. du Pont de Nemours and Company. All Rights Reserved.
9. 9
Ag & Nutrition
4Q08 Segment Highlights
Sales (2%) PTOI (84%)*
$1,400
($30)
$1,200
($100)
$1,000
$800 ($170)
4Q07 4Q08
4Q07 4Q08
4Q08 Results 1H09 Outlook
+ Strong pricing + Strong global seed volume and price
+ Seed market share gains in Latin America + Rynaxypyr® sales
– Crop protection seasonal patterns – Currency
– Growth investments in seed – Commodity prices and continued growth investments
– Commodity and other raw material costs
Strong Latin American season closes out 2008;
Robust start to North American season
* See schedule C and D in the news release for reconciliation of non-GAAP measures. 4Q07 PTOI
included a $15 million gain from an asset divestiture.
© 2009 E.I. du Pont de Nemours and Company. All Rights Reserved.
10. 10
Coatings & Color Technologies
4Q08 Segment Highlights
Sales (21%) PTOI (130%)*
$1,800
$300
$1,400 $200
$100
$1,000
$0
$600
-$100
4Q07 4Q08 4Q07 4Q08
4Q08 Results 1Q09 Outlook
+ Titanium dioxide and refinish products global price + Cost reduction / working capital management
– –
Global motor vehicle production (19%) ** Global motor vehicle production (28%) **
– –
Global destocking Low capacity utilization & raw material costs
– Raw material & transportation cost
– Low capacity utilization
Unprecedented demand contraction hurts 4Q;
Continued weakness in 1Q
* See schedule C and D in the news release for reconciliation of non-GAAP measures.
* * Source: CSM WW Inc
© 2009 E.I. du Pont de Nemours and Company. All Rights Reserved.
11. 11
Electronic & Communication Technologies
4Q08 Segment Highlights
Sales (13%) PTOI (94%)*
$1,000
$160
$800
$80
$600 $0
4Q07 4Q08 4Q07 4Q08
4Q08 Results 1Q09 Outlook
+ Cost actions & inventory management
+ Strong sales of Tedlar® into photovoltaics
+ Pricing primarily in fluoroproducts – Demand more challenging sequentially & YOY
– electronics & fluoropolymers
Global slowdown; most markets & regions
– Low capacity utilization & raw material costs
– Low capacity utilization & raw material costs
– Currency
Sharp global downturn affects 4Q; Challenges continue in 1Q
* See schedule C and D in the news release for reconciliation of non-GAAP measures.
4Q07 PTOI included a $28 million gain from a land sale
© 2009 E.I. du Pont de Nemours and Company. All Rights Reserved.
12. 12
Performance Materials
4Q08 Segment Highlights
Sales (30%) PTOI (169%)*
$1,800 $200
$100
$1,400
$0
$1,000
-$100
$600 -$200
4Q07 4Q08 4Q07 4Q08
4Q08 Results 1Q09 Outlook
+ Fixed cost reductions + Raw material price decline start to impact late 1Q
+ Orange, TX plant site polymer units repaired + Operations/supply chain restoration post hurricane
– Weak demand in most major markets and regions + Cost reduction / working capital management
– Product availability due to hurricane impact – Motor vehicle demand
– Feedstock costs and low capacity utilization – Global industrial demand down sequentially
Rapid demand decline; Intense focus on cost and capital
* See schedule C and D in the news release for reconciliation of non-GAAP measures.
© 2009 E.I. du Pont de Nemours and Company. All Rights Reserved.
13. 13
Safety & Protection
4Q08 Segment Highlights
PTOI (62%)*
Sales (10%)
$1,500 $300
$1,000 $150
$500 $0
4Q07 4Q08 4Q07 4Q08
4Q08 Results 1Q09 Outlook
+ Pricing primarily in aramids and chemical products + Nomex® and parts of Kevlar® strong demand
– Double digit volume decline in most segments + Lower raw material prices
– U.S. construction market faced further weakness – Demand down sequentially in most product lines
– Short-term effect from growth investments
U.S. housing starts reduced over 30% in 2008;
Pressure continues in 2009
* See schedule C and D in the news release for reconciliation of non-GAAP measures.
© 2009 E.I. du Pont de Nemours and Company. All Rights Reserved.
14. 14
2009 Directives
Drive Sales & Earnings
• Deliver against segment specific targets
Reduce Costs
• $730 million fixed cost reduction programs
Reduce Capital Spending
• ~ $1.6 billion
Reduce Working Capital
• $1 billion target
© 2009 E.I. du Pont de Nemours and Company. All Rights Reserved.
15. 15
Appendix
• Industrial chemical prices
• Total company volume and local pricing trends
• Fixed cost control
© 2009 E.I. du Pont de Nemours and Company. All Rights Reserved.
16. 16
Industrial Chemical Prices
Sequential Price Level YOY % Change
Source: Bureau of Labor Statistics U.S. Producer Price Index of Industrial Chemicals
© 2009 E.I. du Pont de Nemours and Company. All Rights Reserved.
17. 17
DuPont Sales Volume Worldwide*
120
15 * History excludes
115
Textiles & Interiors
10
110
5 105
100
0
95
-5
90
-10
-15
Yr/Yr % Change (Left)
-20 Volume Level 4qma (1999 = 100 Right)
-25
00 01 02 03 04 05 06 07 08
© 2009 E.I. du Pont de Nemours and Company. All Rights Reserved.
18. 18
DuPont Selling Prices Worldwide*
10 120
Yr/Yr % Change (Left)
Index 4qma (1999 = 100 Right)
8 115
6
110
4
105
2
0 100
* Prices in local currency terms
-2 (Adjusted for currency & history
95
excludes Textiles & Interiors)
-4
00 01 02 03 04 05 06 07 08
© 2009 E.I. du Pont de Nemours and Company. All Rights Reserved.
19. 19
Productivity Initiative Fixed Cost Control
Fixed Costs as % of Consolidated Sales
Quarterly Annually
55
2004
Fixed Cost % of Sales
2005
45.2
44.6
2006
50 45
2007
42.5
2008
41.2
41.0
45
40
35 35
2004 2005 2006 2007 2008
1 Qtr 2 Qtr 3 Qtr 4 Qtr
Note: Data excludes significant items in all periods and has been
adjusted for 2004 to exclude Textiles & Interiors. © 2009 E.I. du Pont de Nemours and Company. All Rights Reserved.