DuPont de Nemours Inc (NYSE:DD) Q4 2014 Earnings Conference Call - Final Transcript

Jan 27, 2015 • 09:00 am ET


DuPont de Nemours Inc (NYSE:DD) Q4 2014 Earnings Conference Call - Final Transcript


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Welcome to the DuPont Fourth Quarter 2015 Conference Call. My name is John and I will be your operator for today's call. [Operator Instructions].

Now I'll turn the call over to Greg Friedman, Vice President of Investor Relations. Greg, you may begin.

Greg Friedman

Thank you, John. Good morning everyone and welcome. Thank you for joining us to cover DuPont's fourth quarter 2015 performance. Joining me are Ed Breen, Chair and CEO; Nick Fanandakis, Executive Vice President and CFO; and Jim Collins, Executive Vice President responsible for our Agriculture segment.

The slides for today's presentation and corresponding segment commentary can be found on our website along with our news release. During the course of this conference call, we will make forward-looking statements and I direct you to slide one for our disclaimers. All statements that address expectations or projections about the future are forward-looking statements.

Although they reflect our current expectations, these statements are not guarantees of future performance but involve a number of risks and assumptions. We urge you to review DuPont's SEC filings for a discussion of some of the factors that could cause actual results to differ materially. We will also refer to non-GAAP measures. We request that you review our reconciliations to GAAP statements provided with our earnings news release and today's slides, which are posted on our website.

For today's agenda, Ed will provide opening remarks; Nick will review our fourth quarter financial performance; and Ed will provide concluding remarks followed by your questions. With that introduction it's now my pleasure to turn the call over to Ed.

Ed Breen

Thank you, Greg and good morning everyone. We entered 2016 with a lot of momentum on key initiatives. I'd like to comment on the quarter and our progress operationally before having Nick go through the numbers; then I'll come back and provide an update on our planned merger with the Dow. The quarter came in largely as expected amid continued challenging macroeconomic conditions including currency pressures. The progress we are making on the three critical initiatives, I outlined last quarter, contributed to the quarter and will serve us well in the future, regardless of macro conditions, our cost structure; our working capital; and our capital spending.

First on our cost structure, cost reductions contributed $0.10 per share to our fourth quarter results, providing $0.40 in savings for the full year from our operational redesign program. We also announced in December a new global cost savings and restructuring plan designed to reduce 2016 costs by $700 million versus 2015 or $900 million on a run rate basis. We have since identified an additional $100 million savings bringing our run rate total to $1 billion and increasing our 2016 savings to about $730 million.

This plan will further simplify our organization into fewer larger businesses with integrated R&D, engineering, and manufacturing functions, accelerate decision making, and connect even more closely to our end markets. It will sharpen our focus by giving the businesses more control over their P&Ls and more agility to