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DuPont Updates Fourth Quarter Reported Earnings Outlook
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 DuPont updated its fourth quarter 2006 earnings outlook for significant items yesterday.
The company previously announced that 2006 reported earnings were expected to be about USD 2.86, including the net benefit of USD .01 per share from previously reported significant items. Today, the company said additional items will be included in its fourth quarter 2006 reported earnings, providing a net benefit of approximately USD 370 million to net income, or USD 0.39 per share. Including these fourth quarter significant items, the company anticipates 2006 reported earnings per share will be about USD 3.25 per share. The net cash flow benefit from these items is expected to be about USD 25 million in the fourth quarter.
Based on preliminary estimates, the following items are expected to be recorded in the fourth quarter:
A charge of about USD 200 million, pre-tax, related to today’s separately announced Agriculture & Nutrition investment and streamlining plan.
A charge of about USD 50 million, pre-tax, related to an underperforming industrial chemicals asset held for sale within the company’s Safety & Protection segment.
An estimated benefit of about USD 60 million, pre-tax, resulting from insurance recoveries related to asbestos litigation expenses incurred by the company in prior periods and additional Hurricane Katrina insurance recoveries.
An estimated net benefit of about USD 500 million, after-tax, for the reversal of accruals related to tax settlements and related interest, reversal of tax valuation allowances, and the finalization of taxes related to the company’s repatriation of foreign earnings under the American Jobs Creation Act.
“We are shifting capital and resources to our most attractive growth opportunities,” said Jeff Keefer, DuPont executive vice president and chief financial officer. “In addition to the recently announced divestitures in the Coatings & Color Technologies segment, several of these items are the result of executing our strategy to increase return on invested capital.”
The company is scheduled to report its fourth quarter and full-year 2006 financial results on Jan. 23, 2007.
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December 13th, 2006
Photo: DuPont
Source: DuPont |
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