DuPont Expects Dow Merger to Close First-Quarter 2017

---

Researched by Industrial Info Resources (Sugar Land, Texas)--E.I. du Pont de Nemours and Company (NYSE:DD) (DuPont) (Wilmington, Delaware) reported third-quarter 2016 net income of $2 million, compared to $235 million in third-quarter 2015. The drop was largely tied to $172 million in employee severance and asset writedown charges for the just-ended quarter. Net income for the first nine months of the year was $2.25 billion, compared to $2.21 billion in 2015. Industrial Info is tracking $660 million of projects belonging to DuPont.

"Total volumes increased 3% despite a tough macroeconomic backdrop," said Chief Executive Officer Ed Breen in the company's earnings conference call. "Five of the six reportable segments grew volumes. Performance Materials, Agriculture, and Nutrition & Health contributed the most to the company's volume improvement. Drivers included strength in the global automotive market for Performance Materials, higher corn seed and soybean volumes, and growth in probiotics, cultures and ingredient systems for Nutrition & Health."

"The capital expenditure plan remains $1.1 billion, a 20% reduction versus $1.4 billion last year," Breen said. "We have invested $759 million of capital year to date."

Speaking of the company's planned merger with Dow Chemical Company (NYSE:DOW) (Midland, Michigan), Breen said the company still needs regulatory clearance from the United States, European Union, Brazil and China. "We have made progress in all key jurisdictions, and in the event that regulators use their full allotted time, we would expect to close in the first quarter of 2017," Breen said. For more on the planned merger, see September 20, 2016, article - Senate Committee to Hold Hearings on Proposed Agricultural Mergers and December 14, 2015, article - Dow-DuPont Mega-Merger to Have Widespread Impact.

One of DuPont's largest projects being tracked by Industrial Info is the $275 million commercial-scale cellulosic ethanol plant in Nevada, Iowa. The plant will process cellulosic material to produce 27.5 million gallons per year of fuel ethanol. Construction on the project began in early 2013 and is expected to be completed this quarter. Fagen Incorporated (Granite Falls, Minnesota) is acting as general contractor on the project, while KBR Incorporated (NYSE:KBR) (Houston, Texas) provided design engineering for the project.

The company is also under way on a $30 million ground and wastewater treatment system upgrade at its synthetic fibers plant in Richmond, Virginia. The existing groundwater treatment plant is being demolished and replaced with a new one, along with accompanying infrastructure. Construction on the project began in early 2016 and is expected to be completed in the second quarter of 2017. Tetra Tech (Nashville, Tennessee) is acting as general contractor on the project.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.