Flooring News and Information

Wilmington, DE, Oct. 24—DuPont’s third quarter consolidated sales totaled $5.6 billion compared to $6.4 billion for the same period last year. Segment sales, including transfers and a pro rata share of sales by equity affiliates, were $6.4 billion, down 14% from $7.4 billion last year. Net income before one time items was $128 million versus $537 million last year. Third quarter 2001 earnings excluding one-time items were $.12 per share, consistent with expectations but below third quarter 2000 earnings of $.51 per share. The earnings decline reflects significantly lower results in most of the company's segments, principally due to lower worldwide sales volumes and U.S. dollar margins. Net income including one time items was $142 million, compared to earnings of $562 million in the third quarter of last year.

"During the quarter we kept our focus on careful cash management and the actions needed to meet our growth targets over time," said Charles O. Holliday, Jr., DuPont chairman and chief executive officer. "Clearly we are experiencing one of the most challenging business environments the company has faced in decades. DuPont has the financial strength to face this challenge and to continue to invest in the future."

The following compares third quarter results before one time items for each segment with those for the third quarter of last year.

Specialty Fibers—Sales and ATOI were 13% and 64% lower, respectively. Earnings were flat in Advanced Fiber Systems and were down substantially in Nonwovens and Apparel and Textile Sciences (A&TS). A&TS volumes were significantly affected by a very weak U.S. apparel and textile manufacturing environment.

Nylon—Sales decreased 16% with ATOI down 57%, principally reflecting the impact of significantly lower worldwide flooring and intermediates volumes, somewhat higher raw material costs, and lower margins. Demand was particularly soft in the U.S. commercial flooring market. While earnings were lower versus last year, they improved versus second quarter 2001, reflecting lower costs.

Performance Coatings & Polymers—Sales were 12% lower than last year, reflecting lower worldwide vehicle builds, lower U.S. and European refinish sales, decreased demand for printer inks and lower sales of elastomers and engineering polymers. A segment ATOI decline of 56% reflects 9% lower segment volume and declining margins as prices came under increasing pressure.

Specialty Polymers—Segment sales were down 17% reflecting 14% lower volume. Segment ATOI declined 49% with lower earnings in all strategic business units. Electronic Technologies and Fluoropolymers prices and volumes were significantly affected by continued weakness in electronics and related high technology markets. Packaging & Industrial Polymers earnings were higher versus second quarter 2001 but were lower versus last year, reflecting lower sales and margins.

Pigments & Chemicals—ATOI declined 34% on 11% lower sales with lower earnings in all strategic business units. Lower segment earnings principally reflect lower demand and prices for White Pigment & Mineral Products, significant declines in DuPont Chemical Solutions Enterprise volumes, and lower demand in Fluorochemicals specialty markets.

Polyester—Sales were 28% lower (19% excluding portfolio changes) as depressed conditions continued in worldwide markets, particularly apparel. The third quarter loss was $20 million.

Agriculture & Nutrition—ATOI was a loss of $118 million, versus a loss of $85 million in third quarter last year. This reflects declines in Crop Protection and Pioneer, resulting from lower revenues partly offset by better results for Nutrition & Health. Pioneer revenue declined primarily due to lower sales in South America.

Pharmaceuticals—ATOI increased to $84 million versus $41 million last year, due to higher Cozaar/Hyzaar earnings versus last year.

The company currently expects that the U.S. economy will continue to weaken through the fourth quarter.