Business News
Jeff Keefer: DuPonts 2009 Priorities are Clear
Thursday 12. February 2009 - DuPont is addressing the challenging economic conditions head-on by driving cash-generating actions and reducing costs, working capital and capital expenditures, said DuPont Executive Vice President and Chief Financial Officer Jeff Keefer at the Barclays Industrial Select Conference yesterday in Miami.
“DuPonts priorities for 2009 are clear,” Jeff told investors. “We will drive earnings and cash, reduce cost by USD 1.1 billion, reduce capital spending 20 percent from 2008 levels and reduce working capital by USD 1 billion. These actions, in conjunction with our diverse geographic and end-market exposure, will enable the company to maintain its strong financial position as well as emerge from the global recession more agile and more competitive.”
Specific priorities for the company include delivering growth in the Agriculture & Nutrition business segment; continuing its disciplined approach to pricing; capturing value for DuPonts science and brands; delivering cost and capital reductions; and focused investments in growth markets such as seeds and photovoltaics.
DuPont begins 2009 with a strong balance sheet after delivering USD 3.1 billion cash from operations and USD 1.1 billion in free cash flow in 2008.
“DuPonts strong balance sheet provides us with ample liquidity and low funding cost, which is a source of competitive advantage,” Jeff added. “January sales results confirmed our expectation that the first quarter will be a continuation of conditions experienced in fourth quarter 2008 with continued double-digit volume declines.”
While DuPont is taking aggressive actions to align its cost with demand, Jeff said we are well-positioned beyond the recession and confident in its long-term growth strategies, which remain intact.