Taking the next stepin its transformation to a sustainable growth company, DuPont (NYSE: DD)
todayannounced the alignment of its businesses in five market- andtechnology-focused growth
platforms and the creation of a Textiles andInteriors subsidiary. The growth platforms are: DuPont
ElectronicandCommunication Technologies;DuPont Performance Materials; DuPont CoatingsandColor
Technologies; DuPontSafetyandProtection; and DuPont AgricultureandNutrition. “Consistent with our
long-term strategy and direction, our growthplatforms will be more tightly focused on markets and
technologies. This willenable faster execution and improved capability for innovation and
shareholdervalue creation,” said DuPont Chairman and CEO Charles O. Holliday, Jr. The new wholly
owned subsidiary, called DuPont TextilesandInteriors, willinclude the nylon fibers, polyester
fibers and Lycra(R) brand fiberbusinesses, plus their intermediates and joint ventures. DuPont will
considera full range of options for DuPont TextilesandInteriors, including an InitialPublic
Offering (IPO), with the ultimate intent of separation by year-end2003, market conditions
permitting. The company has engaged Morgan Stanley toassist in the evaluation process. “A company
can operate successfully for 200 years only by continuallyreinventing itself,” Holliday said.
“DuPont people in all of our businessesknow this is key to a strong future. Each of the five growth
platforms hasthe critical mass to pursue our strategies of integrated science, knowledgeintensity
and productivity improvement while capitalizing on strong marketpositions, quality products and
powerful brands. At the same time, our newTextilesandInteriors subsidiary will have the scale,
global reach andflexibility to be highly successful in an industry undergoing fundamentalstructural
change.” DuPont TextilesandInteriors will be the world’s largest integrated fiberscompany with
annual segment sales estimated at $6.5 billion. This representsabout 23 percent of 2001 total
DuPont Company segment sales, which includestransfers and the company’s pro rata share of sales by
equity affiliates. Thesubsidiary will be structured to grow shareholder value by aligning
resourceswith market opportunity and establishing an industry-competitive coststructure. As the
global leader in product categories representing 75 percent of itsrevenue, DuPont
TextilesandInteriors will have significant cash and earningsgrowth potential based on growth in key
branded platforms such as Lycra(R)brand fiber, Stainmaster(R) carpet and Antron(R) nylon carpet,
significantcost reduction opportunities, a robust innovation pipeline and strong marketchannel
access. DuPont TextilesandInteriors will be led by DuPont Executive Vice Presidentand Chief
Operating Officer Richard R. Goodmanson and an experienced teamincluding Group Vice Presidents
Steven R. McCracken and George F. MacCormack. “Our nylon, polyester and Lycra(R) businesses have
played a very importantrole in DuPont for many decades,” Holliday said. “They have served
ourcompany, our shareholders and our customers extremely well. Now, with rapidlychanging industry
dynamics and tough market realities, we believe the coursewe have chosen is necessary to allow them
to succeed in the future.” Concurrent with these actions, DuPont will offset all residual costs
fromthe separation of the DuPont TextilesandInteriors subsidiary by aggressivelyreducing its cost
structure for corporate and support services. This effortwill be led by W. Donald Johnson, Group
Vice President – Operations &Services. Each of the five growth platforms has strong
capabilities, large marketopportunities and leadership focus and accountability. A priority will be
toleverage across the platforms as needed for market access and technologyextension. The five
growth platforms are: * DuPont ElectronicandCommunication Technologies. With about $2.7 billion in
segment sales, this group is a world leader in electronic materials. It has the ability to
capitalize on development of innovative technologies that improve the form and functionality of
electronic components in a wide range of applications for the information and communications
industries. The group comprises DuPont Electronic Technologies; DuPont Displays Technologies;
DuPont Imaging Technologies; and DuPont Fluoroproducts, which includes fluoropolymers,
fluorochemicals and fuel cells. These businesses will be led by Diane H. Gulyas, currently vice
presidentandgeneral manager – DuPont Advanced Fiber Systems, who will become Group Vice President.
* DuPont Performance Materials. With segment sales of about $4.7 billion, this group will focus on
high-performance materials substitution in areas where DuPont has a unique advantage. It comprises
DuPont Engineering Polymers, including Zytel(R) nylon resins; DuPont Packaging andIndustrial
Polymers; and DuPont’s interests in the DuPont Dow Elastomers and DuPont Teijin Films joint
ventures. Group Vice President Craig G. Naylor will lead these businesses. * DuPont
CoatingsandColor Technologies. With segment sales of about $4.9 billion, this group of businesses
will extend the company’s global industry leadership position in coatings and color through
superior product development and productivity advances. It includes DuPont Performance Coatings and
DuPont White Pigment and Mineral Products. Group Vice President Edward J. Donnelly will lead these
businesses. * DuPont SafetyandProtection. With segment sales of about $3.6 billion, this group of
businesses is well-positioned to address high growth opportunities, capitalizing on the company’s
unsurpassed capability in safety, security and protection while integrating knowledge and products
in solutions-based offerings. It includes DuPont Safety Resources; DuPont Advanced Fiber Systems;
DuPont Nonwovens; the DuPont Chemical Solutions Enterprise; and DuPont Surfaces. These businesses
will be led by Group Vice President Ellen J. Kullman. * DuPont AgricultureandNutrition. With
segment sales of about $4.3 billion, this business group will leverage DuPont strengths in crop
protection chemicals, seeds, biotechnology, food ingredients and safety to provide solutions for
growers and the global food industry. It comprises DuPont Crop Protection; Pioneer Hi-Bred
International Inc.; and DuPont NutritionandHealth, which includes DuPont Protein Technologies and
DuPont Qualicon, Inc. These businesses will be led by Group Vice President Howard L. Minigh. The
five growth platform leaders will report to John C. Hodgson, currentlyGroup Vice President, who is
appointed Executive Vice President. DuPontexternal financial reporting will be realigned to reflect
the new managementstructure. Estimated sales data shown above are based on 2001 segment sales.
During 2002, DuPont is celebrating its 200th year of scientificachievement and innovation –
providing products and services that improve thelives of people everywhere. Based in Wilmington,
Del., DuPont deliversscience-based solutions for markets that make a difference in people’s livesin
food and nutrition; health care; apparel; home and construction;electronics; and transportation.
Forward-Looking Statements: This news release contains forward-lookingstatements based on
management’s current expectations, estimates andprojections. All statements that address
expectations or projections about thefuture, including statements about the company’s strategy for
growth, productdevelopment, market position, expected expenditures and financial results
areforward-looking statements. Some of the forward-looking statements may beidentified by words
like “expects,” “anticipates,” “plans,” “intends,””projects,” “indicates,” and similar expressions.
These statements are notguarantees of future performance and involve a number of risks,
uncertaintiesand assumptions. Many factors, including those discussed more fully elsewherein this
release and in documents filed with the Securities and ExchangeCommission by DuPont, particularly
its latest annual report on Form 10-K andquarterly report on Form 10-Q, as well as others, could
cause results todiffer materially from those stated. These factors include, but are notlimited to
changes in the laws, regulations, policies and economic conditions,including inflation, interest
and foreign currency exchange rates, ofcountries 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 anddevelopment of new products,
including regulatory approval and marketacceptance; and seasonality of sales of agricultural
products.SOURCE DuPontWeb Site: http://www.dupont.com Copyright 2002 PR Newswire
