DuPont Plans Targeted Reductions to Improve Competitiveness

Apr 02, 2001, 01:00 ET from DuPont

    WILMINGTON, Del., April 2 /PRNewswire/ -- DuPont (NYSE:   DD) today
 announced it will further align resources consistent with the specific
 missions of its individual businesses.  These actions will reduce the
 company's global employee workforce by about 4,000, or 4 percent.  DuPont will
 also reduce the number of contract personnel by about 1,300 and shut down less
 competitive manufacturing assets.
     "Taking actions that result in people losing their jobs is the hardest
 decision we as leaders will ever have to make," said DuPont Chairman and CEO
 Charles O. Holliday, Jr.  "However, we are doing what is necessary to assure
 the competitiveness of our individual businesses and the performance of DuPont
 as a whole."
     Responding to weakening business conditions in the U.S. apparel and
 textile markets, DuPont will accelerate the rationalization of its polyester
 and nylon fiber businesses to improve financial performance.  This will result
 in a combined polyester and nylon reduction of about 2,000 employees -- or
 about half of the total company employee reductions.  Specific actions are:
     In the Polyester Enterprise, the polyester filaments business unit will
 accelerate the benefits of its manufacturing alliance with Unifi Corporation
 by shutting down older filaments manufacturing operations and transferring
 production to lower cost, more modern and flexible assets.  In addition, other
 polyester manufacturing operations will be streamlined to assure a sustainable
 competitive cost position.
     In the Nylon Enterprise, the apparel segment will continue its previously
 announced strategy of focusing on differentiated products and modernizing its
 manufacturing assets.  As a result, the company will shut down less
 competitive production lines.
     Other DuPont business units are taking focused actions to improve
 profitability consistent with their specific revenue, earnings and cash
 objectives.  The most significant of these are:
 
    -- The company's agriculture-related businesses - Pioneer, Crop Protection
        and Nutrition & Health - will accelerate their integration of R&D,
        staff and commercial organizations.
 
    -- The Lycra(R) business will reduce manpower at U.S. and European
        facilities to realize efficiency gains enabled by its new technology
        platforms.  These platforms include significantly advanced and more
        productive spinning technology to be used in previously announced
        capacity expansions in South America and Asia.
 
    -- Internal staff support services will reduce positions commensurate with
        restructurings across the businesses they support.
 
     "We are very sensitive to our employees' feelings and concerns," Holliday
 said.  "We will continue to look for redeployment opportunities for as many
 employees as possible, and will help other employees transition to new careers
 outside of the company.  We recognize and appreciate their many contributions
 to DuPont."
     Approximately 75 percent of the affected employees and contractors are in
 the United States.  Projected annual payroll savings, including reduction in
 contractor costs, are on the order of $400 million pre-tax.  DuPont expects to
 achieve about one-third of the projected cost benefit in 2001, and
 substantially all in 2002.
     DuPont expects to take a one-time second quarter charge of approximately
 40-45 cents per share as a result of these actions.  Roughly half of this
 estimated charge will be for employee severance costs, with the remainder
 principally for asset shutdowns and related dismantlement expenses.  Since
 plans are still being finalized, the actual one-time charge to earnings will
 not be available until the end of the second quarter.
     "These actions will enable us to more rapidly achieve our goal of
 sustainable growth," said Holliday.  "While reducing resources in some
 businesses, we are adding resources in a number of long-term growth markets -
 for example, telecommunications, electronic displays and bio-based materials -
 as well as in fast growing countries such as China.  Across DuPont, each
 business is doing what it needs to do to be successful, consistent with
 customer needs.  We will be a stronger company as a result."
     DuPont is a science company, delivering science-based solutions that make
 a difference in people's lives in food and nutrition; health care; apparel;
 home and construction; electronics; and transportation.  Founded in 1802, the
 company operates in 70 countries and has 93,000 employees.
 
     Forward-Looking Statements: This news release contains forward-looking
 statements based on management's current expectations, estimates and
 projections. All statements that address expectations or projections about the
 future, including statements about the company's strategy for growth, product
 development, market position, expected expenditures and financial results are
 forward-looking statements.  Some of the forward-looking statements may be
 identified by words like "expects," "anticipates," "plans," "intends,"
 "projects," "indicates," and similar expressions.  These statements are not
 guarantees of future performance and involve a number of risks, uncertainties
 and assumptions.  Many factors, including those discussed more fully elsewhere
 in this release and in documents filed with the Securities and Exchange
 Commission by DuPont, particularly its latest annual report on Form 10-K and
 quarterly report on Form 10-Q, as well as others, could cause results to
 differ materially from those stated. These factors include, but are not
 limited to changes in the laws, regulations, policies and economic conditions,
 including inflation, interest and foreign currency exchange rates, of
 countries in which the company does business; competitive pressures;
 successful integration of structural changes, including restructuring plans,
 acquisitions, divestitures and alliances; cost of raw materials, research and
 development of new products, including regulatory approval and market
 acceptance; and seasonality of sales of agricultural products.
 
 

SOURCE DuPont
    WILMINGTON, Del., April 2 /PRNewswire/ -- DuPont (NYSE:   DD) today
 announced it will further align resources consistent with the specific
 missions of its individual businesses.  These actions will reduce the
 company's global employee workforce by about 4,000, or 4 percent.  DuPont will
 also reduce the number of contract personnel by about 1,300 and shut down less
 competitive manufacturing assets.
     "Taking actions that result in people losing their jobs is the hardest
 decision we as leaders will ever have to make," said DuPont Chairman and CEO
 Charles O. Holliday, Jr.  "However, we are doing what is necessary to assure
 the competitiveness of our individual businesses and the performance of DuPont
 as a whole."
     Responding to weakening business conditions in the U.S. apparel and
 textile markets, DuPont will accelerate the rationalization of its polyester
 and nylon fiber businesses to improve financial performance.  This will result
 in a combined polyester and nylon reduction of about 2,000 employees -- or
 about half of the total company employee reductions.  Specific actions are:
     In the Polyester Enterprise, the polyester filaments business unit will
 accelerate the benefits of its manufacturing alliance with Unifi Corporation
 by shutting down older filaments manufacturing operations and transferring
 production to lower cost, more modern and flexible assets.  In addition, other
 polyester manufacturing operations will be streamlined to assure a sustainable
 competitive cost position.
     In the Nylon Enterprise, the apparel segment will continue its previously
 announced strategy of focusing on differentiated products and modernizing its
 manufacturing assets.  As a result, the company will shut down less
 competitive production lines.
     Other DuPont business units are taking focused actions to improve
 profitability consistent with their specific revenue, earnings and cash
 objectives.  The most significant of these are:
 
    -- The company's agriculture-related businesses - Pioneer, Crop Protection
        and Nutrition & Health - will accelerate their integration of R&D,
        staff and commercial organizations.
 
    -- The Lycra(R) business will reduce manpower at U.S. and European
        facilities to realize efficiency gains enabled by its new technology
        platforms.  These platforms include significantly advanced and more
        productive spinning technology to be used in previously announced
        capacity expansions in South America and Asia.
 
    -- Internal staff support services will reduce positions commensurate with
        restructurings across the businesses they support.
 
     "We are very sensitive to our employees' feelings and concerns," Holliday
 said.  "We will continue to look for redeployment opportunities for as many
 employees as possible, and will help other employees transition to new careers
 outside of the company.  We recognize and appreciate their many contributions
 to DuPont."
     Approximately 75 percent of the affected employees and contractors are in
 the United States.  Projected annual payroll savings, including reduction in
 contractor costs, are on the order of $400 million pre-tax.  DuPont expects to
 achieve about one-third of the projected cost benefit in 2001, and
 substantially all in 2002.
     DuPont expects to take a one-time second quarter charge of approximately
 40-45 cents per share as a result of these actions.  Roughly half of this
 estimated charge will be for employee severance costs, with the remainder
 principally for asset shutdowns and related dismantlement expenses.  Since
 plans are still being finalized, the actual one-time charge to earnings will
 not be available until the end of the second quarter.
     "These actions will enable us to more rapidly achieve our goal of
 sustainable growth," said Holliday.  "While reducing resources in some
 businesses, we are adding resources in a number of long-term growth markets -
 for example, telecommunications, electronic displays and bio-based materials -
 as well as in fast growing countries such as China.  Across DuPont, each
 business is doing what it needs to do to be successful, consistent with
 customer needs.  We will be a stronger company as a result."
     DuPont is a science company, delivering science-based solutions that make
 a difference in people's lives in food and nutrition; health care; apparel;
 home and construction; electronics; and transportation.  Founded in 1802, the
 company operates in 70 countries and has 93,000 employees.
 
     Forward-Looking Statements: This news release contains forward-looking
 statements based on management's current expectations, estimates and
 projections. All statements that address expectations or projections about the
 future, including statements about the company's strategy for growth, product
 development, market position, expected expenditures and financial results are
 forward-looking statements.  Some of the forward-looking statements may be
 identified by words like "expects," "anticipates," "plans," "intends,"
 "projects," "indicates," and similar expressions.  These statements are not
 guarantees of future performance and involve a number of risks, uncertainties
 and assumptions.  Many factors, including those discussed more fully elsewhere
 in this release and in documents filed with the Securities and Exchange
 Commission by DuPont, particularly its latest annual report on Form 10-K and
 quarterly report on Form 10-Q, as well as others, could cause results to
 differ materially from those stated. These factors include, but are not
 limited to changes in the laws, regulations, policies and economic conditions,
 including inflation, interest and foreign currency exchange rates, of
 countries in which the company does business; competitive pressures;
 successful integration of structural changes, including restructuring plans,
 acquisitions, divestitures and alliances; cost of raw materials, research and
 development of new products, including regulatory approval and market
 acceptance; and seasonality of sales of agricultural products.
 
 SOURCE  DuPont