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DuPont Provides Details on Restructuring Plan Announced April 21

Post Time:May 09,2009Classify:Company NewsView:366

Actions Will Enable Company to Emerge Stronger, Faster, More Agile from Global Recession

DuPont today detailed its restructuring plan, part of the company’s expanded actions announced April 21 to address weaker global market conditions and further strengthen its long-term competitiveness, including higher 2009 reduction targets for fixed cost and capital expenditures.

“The expanded actions will help preserve our strong cash position, streamline and accelerate our approach to markets and better position our businesses as global economies rebound,” said DuPont CEO Ellen J. Kullman. “As a market-driven science company with strong growth opportunities, our objective is not simply to weather the recession and wait for recovery. Our goal is to emerge from this global recession stronger, faster and more agile than ever before.”

The company’s April 21 announcement included an increase in 2009 fixed cost reduction from $730 million to $1 billion, including expected benefits from the restructuring plan. DuPont’s actions are intended to preserve its strong cash position and better position the company for global economic recovery following fundamental marketplace shifts and demand declines – particularly in motor vehicle, construction and industrial markets. Approximately 2,000 positions will be eliminated and certain assets will be rationalized as part of the restructuring plan.

A pre-tax charge for the restructuring plan will be taken in the second quarter 2009 totaling $340-$390 million, of which approximately 40 percent is expected to be non-cash. The restructuring plan, which is anticipated to have an essentially cash neutral impact this year, is expected to deliver over $70 million benefit in 2009 with about $225 million annual savings by year-end 2010. The company will file a Form 8-K with the U.S. Security Exchange Commission today containing additional information.

DuPont will continue aggressive actions to reduce costs and capital expenditures, in addition to maintaining an appropriate level of investment for high-growth, high-margin businesses including seed products and photovoltaics. In the first quarter, DuPont launched more than 500 new products, nearly double the number introduced in first quarter 2008.

DuPont is a science-based products and services company. Founded in 1802, DuPont puts science to work by creating sustainable solutions essential to a better, safer, healthier life for people everywhere. Operating in more than 70 countries, DuPont offers a wide range of innovative products and services for markets including agriculture and food; building and construction; communications; and transportation.

Source: DuPontAuthor: shangyi

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