DuPont to continue focus on maximizing cash flow, provide earnings guidance for Q4-08 and for 2009

09-Dec-08

In a bid to tackle current market challenges and strengthen the company's competitiveness in 2009, DuPont has announced additional measures including continued focus on maximizing cash flow, and provided earnings guidance for the fourth quarter 2008 and the full year 2009. The company had taken immediate and aggressive actions to maximize cash flow by reducing cost, working capital and capital expenditures. Full-year 2008 free cash flow is expected to be as planned at about US$ 1.3 bln, with working capital improvements offsetting earnings decline. Free cash flow will increase to about US$ 2.5 bln in 2009, reflecting a planned US$ 1 bln on net working capital reduction and a 10-20% reduction in capital spending. DuPont is taking actions to deliver in 2009 US$600 mln in fixed cost productivity improvements, excluding volume and currency, in addition to about US$130 mln in cost reductions from its restructuring plan. This compares to an original 2009 cost productivity plan of US$200 mln. DuPont has commenced a restructuring plan with an associated pre-tax charge of about US$500 mln in the fourth quarter resulting in a pre-tax earnings increase of about US$130 mln for 2009, and approximately a US$250 mln annual run rate. The company expects a loss of US$.20-.30/share for Q4-08, excluding an estimated US$.40/share significant item charge for the company's restructuring plan. On a reported basis, the company expects Q4 earnings to be a loss of US$.60-.70/share.