Business Context and Reporting Period
This Form 8-K was filed by E. I. du Pont de Nemours and Company (DuPont) on October 9, 2012. The filing announces that the company will report its third quarter 2012 results on October 23, 2012. Due to the planned divestiture of DuPont Performance Coatings (DPC) announced on August 30, 2012, the third quarter results will be presented on a continuing operations basis, excluding DPC.
Key Financial Metrics
The filing provides a breakdown of diluted earnings per share (EPS) for the first and second quarters of 2012 to assist investors with the new presentation format. The filing does not provide data on revenue, profit totals, cash flow, margins, debt, or liquidity.
| Period | Q1 2012 (Ended March 31) | Q2 2012 (Ended June 30) |
|---|---|---|
| Diluted EPS from continuing operations (excluding significant items) | $1.51 | $1.40 |
| Diluted EPS from discontinued operations | $0.10 | $0.08 |
| Total Diluted EPS (excluding significant items) | $1.61 | $1.48 |
| Significant items benefit (charge) included in EPS | ($0.04) | ($0.23) |
| Diluted EPS from continuing operations (GAAP) | $1.47 | $1.17 |
Material Changes and Presentation
The primary material change disclosed is the shift in financial reporting presentation for the third quarter of 2012. Results will exclude the DuPont Performance Coatings (DPC) segment, which is classified as discontinued operations. The filing highlights a decline in non-GAAP continuing operations EPS from Q1 to Q2 2012 ($1.51 to $1.40) and a significant charge impacting GAAP EPS in Q2 ($0.23) compared to Q1 ($0.04).
Guidance, Outlook, and Risks
The filing does not provide specific forward-looking guidance, outlook, or risk factors beyond the announcement of the upcoming earnings release date. Management notes that the non-GAAP measures provided are not recognized under GAAP and should not be viewed as an alternative to GAAP measures. Descriptions of the "significant items" affecting EPS are referenced in previous earnings news releases filed on April 19, 2012, and July 24, 2012.
Investor Verification Checklist
- Verify the specific details of the DuPont Performance Coatings (DPC) divestiture and its impact on future cash flows.
- Review the earnings news releases from April 19, 2012, and July 24, 2012, to understand the nature of the "significant items" charges.
- Monitor the October 23, 2012, earnings release for the full Q3 2012 results under the new continuing operations presentation.
- Confirm the reconciliation of non-GAAP measures to GAAP measures in the upcoming quarterly report.