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DuPont Delivers 3Q 2013 Operating Earnings of $.45 per Share

October 22, 2013

Sales Increase on Higher Volume

WILMINGTON, Del., Oct. 22, 2013 /PRNewswire/ — DuPont today announced third quarter 2013 operating earnings of $.45 per share compared to $.43 per share in the prior year. GAAP(1) earnings from continuing operations were $.28 per share versus a loss of $.05 per share for the third quarter 2012. Third quarter results principally reflect overall top-line growth and earnings improvements for Performance Materials, Electronics & Communications and Safety & Protection, and a lower effective tax rate. This was offset by expected lower earnings for Performance Chemicals.

Highlights

    --  Third quarter net sales of $7.7 billion increased 5 percent, with volume
        up 9 percent versus a weak prior year.  Sales also reflect 3 percent
        lower local prices and a 1 percent negative currency impact.
    --  Excluding Performance Chemicals, all operating segments posted increased
        operating earnings versus last year.  Performance Materials, Electronics
        & Communications, Safety & Protection and Industrial Biosciences had
        double-digit earnings growth reflecting higher volumes and improved
        margins.
    --  Agriculture sales grew 15 percent driven by increased insecticide
        volumes and higher seed prices in Latin America. The sales growth and
        the benefit of increased ownership in Pannar Seed (Pty) Ltd. reduced the
        segment's third quarter seasonal loss to $62 million.
    --  Cost productivity gains and restructuring savings are on track to meet
        or exceed full-year targets.
    --  The company continues to expect full-year operating earnings of about
        $3.85 per share.

“We executed well against our plans. Third quarter sales volumes and operating earnings were stronger across most businesses compared to a soft quarter last year,” said DuPont Chair and CEO Ellen Kullman. “While we expect overall sequential growth in industrial market demand will remain subdued, fourth quarter operating earnings will be up substantially from last year. For the full year we are on track to deliver modest earnings growth, despite the significant decline in Performance Chemicals’ results.”

(1)Generally Accepted Accounting Principles (GAAP)

Global Consolidated Net Sales – 3rd Quarter

Third quarter 2013 net sales were $7.7 billion, up 5 percent versus last year, reflecting 9 percent higher volume, partly offset by 3 percent lower local selling prices and 1 percent negative currency impact. The table below shows third quarter regional sales and variances versus third quarter 2012.


                                   Three Months Ended      Percentage Change Due to:

                                   September 30, 2013
                                   ------------------

    (Dollars in millions)                                $   % Change                Local  Price     Currency Effect     Volume    Portfolio/ Other
                                                       ---   --------                ------------     ---------------     ------    ----------------

    U.S. & Canada                                   $2,548                   3                    (1)                  -          5                  (1)

    EMEA*                                            1,814                  10                    (5)                  2         10                   3

    Asia Pacific                                     1,944                   3                    (6)                 (3)        12                   -

    Latin America                                    1,429                   4                     -                  (4)         8                   -
                                                     -----

    Total Consolidated Sales                        $7,735                   5                    (3)                 (1)         9                   -

    * Europe, Middle East & Africa

Segment Sales – 3rd Quarter

The table below shows third quarter 2013 segment sales with related variances versus the prior year.


    SEGMENT SALES            Three Months Ended            Percentage Change

    (Dollars in millions)    September 30, 2013      Due to:
                             ------------------      -------

                                                  $      % Change             USD       Volume     Portfolio/

                                                                             Price                    Other
                                                                             -----                    -----

    Agriculture                              $1,633                   15             1         10              4

    Electronics &
     Communications                             638                    5            (9)        14              -

    Industrial Biosciences                      305                    4             -          4              -

    Nutrition & Health                          868                   (1)            1         (1)            (1)

    Performance Chemicals                     1,720                   (1)          (13)        12              -

    Performance Materials                     1,663                    3            (2)         6             (1)

    Safety & Protection                         985                    5             -          5              -

    Other                                         1                   nm
                                                ---

    Total segment sales                       7,813

    Elimination of transfers                    (78)
                                                ---

    Consolidated net sales                   $7,735

Operating Earnings – 3rd Quarter


                                                                                                                     Change vs. 2012
                                                                                                                     ---------------

    (Dollars in millions)                                                                    3Q13        3Q12                            $   %
                                                                                             ----        ----                          ---  ---

    Agriculture                                                                                    $(62)       $(70)                    $8       11%

    Electronics & Communications                                                                     97          58                     39       67%

    Industrial Biosciences                                                                           45          40                      5       13%

    Nutrition & Health                                                                               81          77                      4        5%

    Performance Chemicals                                                                           254         413                   (159)     -38%

    Performance Materials                                                                           374         331                     43       13%

    Safety & Protection                                                                             171         147                     24       16%

    Other                                                                                          (112)        (85)                   (27)      nm
                                                                                                   ----         ---                    ---

                                                                                                    848         911                    (63)      -7%

    Pharmaceuticals                                                                                   5          10                     (5)     -50%
                                                                                                    ---         ---                    ---

    Total segment operating earnings (1)                                                            853         921                    (68)      -7%

    Corporate expenses                                                                             (162)       (174)                    12       nm

    Interest expense                                                                               (108)       (116)                     8       nm
                                                                                                   ----        ----                    ---

    Operating earnings before income taxes and exchange gains/losses                                583         631                    (48)      -8%

    Provision for income taxes on operating earnings, excluding taxes                              (111)       (164)                    53       nm
          on exchange gains/losses

    Net after-tax exchange gains (losses) (2)                                                       (43)        (59)                    16       nm

    Net income attributable to noncontrolling interests                                              (3)         (3)                     -       nm
                                                                                                    ---         ---                    ---

    Operating earnings                                                                             $426        $405                    $21        5%
                                                                                                   ====        ====                    ===

    Operating earnings per share                                                                  $0.45       $0.43                  $0.02        5%
                                                                                                  =====       =====                  =====

    (1)  See Schedules B and C for listing of significant items and their impact by segment.

    (2)  See Schedule D for additional information on exchange gains and losses.

The following is a summary of business results for each of the company’s reportable segments in the third quarter comparing the current quarter with the prior year. References to selling price are on a U.S. dollar basis, including the impact of currency.

Agriculture – A seasonal operating loss of $62 million improved $8 million. The improvement was driven by strong insecticide demand as growers anticipate heavy insect pressure in Latin America, price improvement in seeds, and a $26 million gain resulting from the acquisition of a controlling interest in Pannar. These increases were offset by higher seed costs reflecting finalization of the northern hemisphere season, continued investment to drive future growth and a negative currency impact.

Electronics & Communications – Operating earnings of $97 million increased $39 million driven by higher sales volume, mainly in photovoltaic markets reflecting demand improvement and share gains. Higher volume was offset in part by reduced selling prices, mainly from pass-through of lower metals prices.

Industrial Biosciences - Operating earnings of $45 million were up 13 percent on higher sales of Sorona(®) polymer for carpeting and apparel and lower costs, partially offset by higher raw material costs.

Nutrition & Health - Operating earnings of $81 million increased 5 percent reflecting productivity improvements, partially offset by higher cost guar inventory and negative currency.

Performance Chemicals – Operating earnings of $254 million were $159 million lower as price declines for titanium dioxide, refrigerants and fluoropolymers, along with higher raw material inventory costs, principally ore costs, more than offset volume increases. Titanium dioxide volume was up 25 percent from third quarter 2012 and essentially flat on a sequential basis.

Performance Materials – Operating earnings of $374 million increased $43 million including a $30 million benefit from a joint venture. Earnings improvement from higher volume reflecting increased demand in packaging, automotive, and electronics markets was partially offset by lower selling prices.

Safety & Protection - Operating earnings of $171 million increased $24 million due primarily to higher volume and productivity improvements, partially offset by weaker sales mix. Higher volume reflects increased demand for U.S. ballistics military protection, protective garments, and construction products that offset softness in global public sector spending.

Additional information is available on the DuPont Investor Center website at http://www.investors.dupont.com.

Outlook

The company continues to expect full-year operating earnings of about $3.85 per share, with some changes in underlying assumptions. The company now anticipates slightly lower full-year growth rates for global GDP and industrial production, a larger negative currency impact and a lower base tax rate of about 22 percent.

Use of Non-GAAP Measures

Management believes that certain non-GAAP measurements are meaningful to investors because they provide insight with respect to ongoing operating results of the company. Such measurements are not recognized in accordance with GAAP and should not be viewed as an alternative to GAAP measures of performance. Reconciliations of non-GAAP measures to GAAP are provided in schedules A, C and D.

DuPont (NYSE: DD) has been bringing world-class science and engineering to the global marketplace in the form of innovative products, materials, and services since 1802. The company believes that by collaborating with customers, governments, NGOs, and thought leaders we can help find solutions to such global challenges as providing enough healthy food for people everywhere, decreasing dependence on fossil fuels, and protecting life and the environment. For additional information about DuPont and its commitment to inclusive innovation, please visit http://www.dupont.com.

Forward-Looking Statements: This news release contains forward-looking statements which may be identified by their use of words like “plans,” “expects,” “will,” “believes,” “intends,” “estimates,” “anticipates” or other words of similar meaning. All statements that address expectations or projections about the future, including statements about the company’s growth strategy, product development, regulatory approval, market position, anticipated benefits of acquisitions, outcome of contingencies, such as litigation and environmental matters, expenditures and financial results, are forward-looking statements. Forward-looking statements are not guarantees of future performance and are based on certain assumptions and expectations of future events which may not be realized. Forward-looking statements also involve risks and uncertainties, many of which are beyond the company’s control. Some of the important factors that could cause the company’s actual results to differ materially from those projected in any such forward-looking statements are: fluctuations in energy and raw material prices; failure to develop and market new products and optimally manage product life cycles; significant litigation and environmental matters; failure to appropriately manage process safety and product stewardship issues; changes in laws and regulations or political conditions; global economic and capital markets conditions, such as inflation, interest and currency exchange rates; business or supply disruptions; security threats, such as acts of sabotage, terrorism or war, weather events and natural disasters; ability to protect and enforce the company’s intellectual property rights; and successful integration of acquired businesses and separation of underperforming or non-strategic assets or businesses. The company undertakes no duty to update any forward-looking statements as a result of future developments or new information.


                                                                                                            E. I. du Pont de Nemours and Company

                                                                                                               Consolidated Income Statements

                                                                                                      (Dollars in millions, except per share amounts)

    SCHEDULE A

                                                                                                                          Three Months Ended                                   Nine Months Ended
                                                                                                                           September 30,                                    September 30,
                                                                                                                           -------------                                    -------------

                                                                                                                               2013                                2012                       2013                  2012
                                                                                                                               ----                                ----                       ----                  ----

    Net sales                                                                                                                $7,735                              $7,390                    $27,987               $27,487

    Other income (loss), net(a)                                                                                                  70                                 (54)                       321                   251
                                                                                                                                ---                                 ---                        ---                   ---

    Total                                                                                                                     7,805                               7,336                     28,308                27,738

    Cost of goods sold                                                                                                        5,165                               4,779                     17,415                16,558

    Other operating charges (a)                                                                                                 990                                 937                      2,843                 3,064

    Selling, general and administrative expenses                                                                                774                                 764                      2,740                 2,691

    Research and development expense                                                                                            540                                 521                      1,603                 1,562

    Interest expense                                                                                                            108                                 116                        340                   347

    Employee separation / asset related charges, net (a)                                                                          -                                 394                          -                   394
                                                                                                                                ---                                 ---                        ---                   ---

    Total                                                                                                                     7,577                               7,511                     24,941                24,616

    Income (loss) from continuing operations before income taxes                                                                228                                (175)                     3,367                 3,122

    (Benefit from) provision for income taxes on continuing operations (a)                                                      (35)                               (135)                       687                   654
                                                                                                                                ---                                ----                        ---                   ---

    Income from continuing operations after income taxes                                                                        263                                 (40)                     2,680                 2,468

    Income from discontinued operations after taxes                                                                              25                                  48                      1,997                   219
                                                                                                                                ---                                 ---                      -----                   ---

    Net income                                                                                                                  288                                   8                      4,677                 2,687

    Less:  Net income attributable to noncontrolling interests                                                                    3                                   3                         14                    24
                                                                                                                                ---                                 ---                        ---                   ---

    Net income attributable to DuPont                                                                                          $285                                  $5                     $4,663                $2,663
                                                                                                                               ====                                 ===                     ======                ======

    Basic earnings per share of common stock (b):

    Basic earnings (loss) per share of common stock from continuing operations                                                $0.28                              $(0.05)                     $2.87                 $2.61

    Basic earnings per share of common stock from discontinued operations                                                      0.03                                0.05                       2.16                  0.24
                                                                                                                               ----                                ----                       ----                  ----

    Basic earnings per share of common stock                                                                                  $0.30               $                   -                      $5.03                 $2.85
                                                                                                                              =====               =====================                      =====                 =====

    Diluted earnings per share of common stock (b):

    Diluted earnings (loss) per share of common stock from continuing operations                                              $0.28                              $(0.05)                     $2.85                 $2.58

    Diluted earnings per share of common stock from discontinued operations                                                    0.03                                0.05                       2.14                  0.23
                                                                                                                               ----                                ----                       ----                  ----

    Diluted earnings per share of common stock                                                                                $0.30               $                   -                      $4.99                 $2.82
                                                                                                                              =====               =====================                      =====                 =====

    Dividends per share of common stock                                                                                       $0.45                               $0.43                      $1.33                 $1.27
                                                                                                                              =====                               =====                      =====                 =====

    Average number of shares outstanding used in earnings per share (EPS) calculation:

      Basic                                                                                                             925,645,000                         931,737,000                925,548,000           933,227,000

      Diluted                                                                                                           933,005,000                         940,526,000                932,542,000           942,524,000

    (a) See Schedule B for detail of significant items.

    (b) The sum of the individual earnings per share amounts may not equal the total due to rounding.

    Reconciliation of Non-GAAP Measures
    -----------------------------------

    Summary of Earnings Comparison

                                                                                                                                          Three Months Ended                                        Nine Months Ended
                                                                                                                                             September 30,                                            September 30,
                                                                                                                                             -------------                                            -------------

                                                                                                                               2013                                2012                   %                         2013    2012         %
                                                                                                                                                                         Change                                                   Change

    Income from continuing operations after income taxes (GAAP)                                                                $263                                $(40)                       758%               $2,680  $2,468            9%

    Less:  Significant items benefit (charge) included in income from

    continuing operations after income taxes (per Schedule B)                                                                   (71)                               (342)                                            (129)   (589)

      Non-operating pension/OPEB costs included in income from

    continuing operations after income taxes                                                                                    (95)                               (106)                                            (279)   (340)

      Net income attributable to noncontrolling interest                                                                          3                                   3                                               14      24

    Operating earnings                                                                                                         $426                                $405                          5%               $3,074  $3,373           -9%
                                                                                                                               ====                                ====                                           ======  ======

    EPS from continuing operations (GAAP)                                                                                     $0.28                              $(0.05)                       660%                $2.85   $2.58           10%

    Significant items benefit (charge) included in EPS (per Schedule B)                                                       (0.08)                              (0.37)                                           (0.14)  (0.63)

    Non-operating pension/OPEB costs included in EPS                                                                          (0.09)                              (0.11)                                           (0.30)  (0.36)

    Operating EPS                                                                                                             $0.45                               $0.43                          5%                $3.29   $3.57           -8%
                                                                                                                              =====                               =====                                            =====   =====


                                                                                              E. I. du Pont de Nemours and Company

                                                                                             Condensed Consolidated Balance Sheets

                                                                                        (Dollars in millions, except per share amounts)

    SCHEDULE A (continued)

                                                                                                                                        September 30,          December 31,

                                                                                                                                                         2013                  2012
                                                                                                                                                         ----                  ----

    Assets

    Current assets

    Cash and cash equivalents                                                                                                                          $7,005                $4,284

    Marketable securities                                                                                                                                 184                   123

    Accounts and notes receivable, net                                                                                                                  8,298                 5,452

    Inventories                                                                                                                                         7,031                 7,565

    Prepaid expenses                                                                                                                                      185                   204

    Deferred income taxes                                                                                                                                 840                   613

    Assets held for sale                                                                                                                                    -                 3,076

    Total current assets                                                                                                                               23,543                21,317

    Property, plant and equipment, net of accumulated depreciation                                                                                     12,908                12,741
       (September 30, 2013 - $19,779; December 31, 2012 - $19,085)

    Goodwill                                                                                                                                            4,718                 4,616

    Other intangible assets                                                                                                                             5,135                 5,126

    Investment in affiliates                                                                                                                            1,054                 1,163

    Deferred income taxes                                                                                                                               3,739                 3,936

    Other assets                                                                                                                                          893                   960
                                                                                                                                                          ---                   ---

    Total                                                                                                                                             $51,990               $49,859
                                                                                                                                                      =======               =======

    Liabilities and Equity

    Current liabilities

    Accounts payable                                                                                                                                   $3,876                $4,853

    Short-term borrowings and capital lease obligations                                                                                                 4,204                 1,275

    Income taxes                                                                                                                                          442                   343

    Other accrued liabilities                                                                                                                           3,874                 5,997

    Liabilities related to assets held for sale                                                                                                             -                 1,084
                                                                                                                                                          ---                 -----

    Total current liabilities                                                                                                                          12,396                13,552

    Long-term borrowings and capital lease obligations                                                                                                 10,755                10,465

    Other liabilities                                                                                                                                  13,901                14,687

    Deferred income taxes                                                                                                                                 973                   856
                                                                                                                                                          ---                   ---

    Total liabilities                                                                                                                                  38,025                39,560
                                                                                                                                                       ------                ------

    Commitments and contingent liabilities

    Redeemable noncontrolling interest                                                                                                                     65                     -

    Stockholders' equity

    Preferred stock                                                                                                                                       237                   237

    Common stock, $0.30 par value; 1,800,000,000 shares authorized;                                                                                       304                   306
       Issued at September 30, 2013 - 1,013,111,000 ; December 31, 2012 - 1,020,057,000

    Additional paid-in capital                                                                                                                         11,007                10,655

    Reinvested earnings                                                                                                                                17,020                14,383

    Accumulated other comprehensive loss                                                                                                               (8,000)               (8,646)

    Common stock held in treasury, at cost (87,041,000 shares                                                                                          (6,727)               (6,727)
       at September 30, 2013 and December 31, 2012)

    Total DuPont stockholders' equity                                                                                                                  13,841                10,208
                                                                                                                                                       ------                ------

    Noncontrolling interests                                                                                                                               59                    91
                                                                                                                                                          ---                   ---

    Total equity                                                                                                                                       13,900                10,299
                                                                                                                                                       ------                ------

    Total                                                                                                                                             $51,990               $49,859
                                                                                                                                                      =======               =======


                            E. I. du Pont de Nemours and Company

                      Condensed Consolidated Statement of Cash Flows

                                   (Dollars in millions)

    SCHEDULE A (continued)

                                                        Nine Months Ended

                                                        September 30,
                                                        -------------

    Total Company                                           2013             2012
                                                            ----             ----

    Net income                                            $4,677           $2,687

    Adjustments to reconcile net income to cash
     used for operating activities:

    Depreciation                                             961            1,047

    Amortization                                             255              266

    Other
     operating
     charges and
     credits -
     net                                                     447              907

    Gain on sale
     of business                                          (2,689)               -

    Contributions
     to pension
     plans                                                  (246)            (762)

    Change in
     operating
     assets and
     liabilities
     -net                                                 (5,738)          (4,571)
                                                          ------           ------

    Cash used for
     operating
     activities                                           (2,333)            (426)

    Investing activities

    Purchases of
     property,
     plant and
     equipment                                            (1,223)          (1,139)

    Investments
     in
     affiliates                                              (43)             (31)

    Payments for
     businesses -
     net of cash
     acquired                                               (133)             (18)

    Proceeds from
     sale of
     business -
     net                                                   4,816                -

    Proceeds from
     sales of
     assets -net                                             126              175

    Net
     (increase)
     decrease in
     short-term
     financial
     instruments                                             (78)             336

    Forward
     exchange
     contract
     settlements                                              82               23

    Other
     investing
     activities -
     net                                                      31              (13)
                                                             ---              ---

    Cash provided
     by (used
     for)
     investing
     activities                                            3,578             (667)

    Financing activities

    Dividends
     paid to
     stockholders                                         (1,242)          (1,191)

    Net increase
     in
     borrowings                                            3,204            2,524

    Repurchase of
     common stock                                         (1,000)            (400)

    Proceeds from
     exercise of
     stock
     options                                                 497              520

    Payments for
     noncontrolling
     interest                                                  -             (447)

    Other
     financing
     activities -
     net                                                       3               38
                                                             ---              ---

    Cash provided
     by financing
     activities                                            1,462            1,044

    Effect of
     exchange
     rate changes
     on cash                                                 (81)             (23)

    Cash
     classified
     as held for
     sale                                                      -              (96)
                                                             ---              ---

    Increase
     (decrease)
     in cash and
     cash
     equivalents                                           2,626             (168)

    Cash and cash
     equivalents
     at beginning
     of period                                             4,379            3,586
                                                           -----            -----

    Cash and cash
     equivalents
     at end of
     period                                               $7,005           $3,418
                                                          ======           ======

    Reconciliation of Non-GAAP Measure
    ----------------------------------

    Calculation of Free Cash Flow - Total Company

                                                      Nine Months Ended
                                                        September 30,
                                                        -------------

                                                            2013             2012
                                                            ----             ----

    Cash used for
     operating
     activities                                          $(2,333)           $(426)

    Purchases of
     property,
     plant and
     equipment                                            (1,223)          (1,139)

    Free cash
     flow                                                $(3,556)         $(1,565)
                                                         =======          =======



                                                                                E. I. du Pont de Nemours and Company

                                                                      Schedule of Significant Items from Continuing Operations

                                                                          (Dollars in millions, except per share amounts)

    SCHEDULE B

    SIGNIFICANT ITEMS FROM CONTINUING OPERATIONS

                                                 Pre-tax        After-tax                           ($ Per Share)
                                                 -------        ---------                            ------------

                                                          2013               2012                                  2013         2012    2013    2012
                                                          ----               ----                                  ----         ----    ----    ----

    1st Quarter
    -----------

    Customer claims charge (a)                            $(35)              $(50)                                 $(22)        $(32) $(0.02) $(0.04)

    Income tax items (b)                                     -                  -                                    42            -    0.04       -

    1st Quarter - Total                                   $(35)              $(50)                                  $20         $(32)  $0.02  $(0.04)
                                                          ====               ====                                   ===         ====   =====  ======

    2nd Quarter
    -----------

    Customer claims charge (a)                            $(80)             $(265)                                 $(51)       $(169) $(0.05) $(0.18)

    Income tax items (c)                                   (11)                 -                                   (27)           -   (0.03)      -

    Litigation settlement (d)                                -               (137)                                    -         (123)      -   (0.13)

    Gain on sale of equity method investment (e)             -                122                                     -           77       -    0.08

    2nd Quarter - Total                                   $(91)             $(280)                                 $(78)       $(215) $(0.08) $(0.23)
                                                          ====              =====                                  ====        =====  ======  ======

    3rd Quarter
    -----------

    Customer claims charge (a)                            $(40)             $(125)                                 $(24)        $(80) $(0.03) $(0.09)

    Litigation settlement (f)                              (72)                 -                                   (47)           -   (0.05)      -

    Restructuring charge (g)                                 -               (152)                                    -         (105)      -   (0.11)

    Asset impairment charge (h)                              -               (242)                                    -         (157)      -   (0.17)

    3rd Quarter - Total                                  $(112)             $(519)                                 $(71)       $(342) $(0.08) $(0.37)
                                                         =====              =====                                  ====        =====  ======  ======

    Year-to-date - Total (i)                             $(238)             $(849)                                $(129)       $(589) $(0.14) $(0.63)
                                                         =====              =====                                 =====        =====  ======  ======

    (a)            Third quarter 2013 includes a net
                   charge of $(40) consisting of a $(65)
                   charge associated with the company's
                   process to fairly resolve claims
                   related to the use of Imprelis(R)
                   herbicide offset by $25 of insurance
                   recoveries.  At September 30, 2013,
                   the company has recorded charges of
                   $(930) to resolve these claims. The
                   company will continue to evaluate
                   reported claim damage as additional
                   information becomes available. It is
                   reasonably possible that additional
                   charges could result related to this
                   matter and the company currently
                   estimates that total charges could be
                   about $1,200. The company has an
                   applicable insurance program with a
                   deductible equal to the first $100 of
                   costs and expenses. The insurance
                   program limits are $725 for costs and
                   expenses in excess of the $100. The
                   company has submitted and will
                   continue to submit requests for
                   payment to its insurance carriers for
                   costs associated with this matter.
                   The company has begun to receive
                   payment from its insurance carriers
                   and continues to seek recovery
                   although the timing and outcome
                   remain uncertain. These charges are
                   recorded in Other operating charges
                   and relate to the Agriculture
                   segment.

    (b)            First quarter 2013 included a net tax
                   benefit of $42 consisting of a $68
                   benefit for the 2013 extension of
                   certain U.S business tax provisions
                   offset by a ($26) charge related to
                   the global distribution of
                   Performance Coatings cash proceeds.

    (c)            Second quarter 2013 included a charge
                   of ($11) in Other income, net related
                   to interest on a prior year tax
                   position.  Second quarter 2013 also
                   included a charge of ($49) associated
                   with a change in accrual for a prior
                   year tax position (inclusive of a
                   benefit associated with interest on a
                   prior year tax position) offset by a
                   $33 benefit for an enacted tax law
                   change.

    (d)            Second quarter 2012 included a charge
                   of ($137) recorded in Other operating
                   charges primarily related to the
                   company's settlement of litigation
                   with Invista.  This matter relates to
                   Other.

    (e)            Second quarter 2012 included a pre-
                   tax gain of $122 recorded in Other
                   income, net associated with the sale
                   of an equity method investment in the
                   Electronics & Communications segment.

    (f)            Third quarter 2013 includes a charge
                   of $(72) recorded in Other operating
                   charges related to the company's
                   settlement of titanium dioxide
                   antitrust litigation.  This matter
                   relates to the Performance Chemicals
                   segment.

    (g)            Third quarter 2012 included a $152
                   restructuring charge recorded in
                   Employee separation/asset related
                   charges, net consisting of $133 of
                   severance and related benefit costs
                   and $19 of asset related charges as a
                   result of the company's plan to
                   eliminate corporate costs previously
                   allocated to Performance Coatings and
                   cost-cutting actions to improve
                   competitiveness.  Pre-tax charges by
                   segment were: Agriculture - $(3),
                   Nutrition & Health - $(13),
                   Electronics & Communications - $(7),
                   Performance Chemicals - $(3),
                   Performance Materials - $(9), Safety
                   & Protection - $(55), Industrial
                   Biosciences - $(3), and Corporate
                   expenses - $(59).

    (h)            Third quarter 2012 included a $242
                   impairment charge recorded in
                   Employee separation/asset related
                   charges, net related to asset
                   groupings within the Electronics &
                   Communications and Performance
                   Materials segments. The charge of
                   $150 within Electronics &
                   Communications was a result of
                   conditions within the thin film
                   photovoltaic market. The charge of
                   $92 within Performance Materials was
                   the result of deteriorating
                   conditions in an industrial polymer
                   market.

    (i)            Earnings per share for the year may
                   not equal the sum of quarterly
                   earnings per share due to changes in
                   average share calculations.


                                          E. I. du Pont de Nemours and Company

                                            Consolidated Segment Information

                                                 (Dollars in millions)

    SCHEDULE C

                                                Three Months Ended                 Nine Months Ended
                                                September 30,                   September 30,
                                                -------------                   -------------

    SEGMENT SALES (1)                              2013                   2012                 2013     2012
    ----------------                               ----                   ----                 ----     ----

    Agriculture                                  $1,633                 $1,423               $9,933   $8,891

    Electronics &
     Communications                                 638                    607                1,907    2,079

    Industrial Biosciences                          305                    292                  898      880

    Nutrition & Health                              868                    876                2,601    2,569

    Performance Chemicals                         1,720                  1,732                5,087    5,600

    Performance Materials                         1,663                  1,614                4,892    4,913

    Safety & Protection                             985                    934                2,909    2,861

    Other                                             1                      2                    5        4

    Total Segment sales                           7,813                  7,480               28,232   27,797

    Elimination of transfers                        (78)                   (90)                (245)    (310)

    Consolidated net sales                       $7,735                 $7,390              $27,987  $27,487
                                                 ======                 ======              =======  =======

    (1)   Sales for the reporting segments include transfers.


                                                                                 E. I. du Pont de Nemours and Company

                                                                                   Consolidated Segment Information

                                                                                        (Dollars in millions)

    SCHEDULE C (continued)

                                                                                                                         Three Months Ended             Nine Months Ended
                                                                                                                         September 30,               September 30,
                                                                                                                         -------------               -------------

    INCOME/(LOSS) FROM CONTINUING OPERATIONS (GAAP)                                                                         2013             2012                   2013    2012
    -----------------------------------------------                                                                         ----             ----                   ----    ----

    Agriculture                                                                                                            $(102)           $(198)                $2,240  $1,772

    Electronics & Communications                                                                                              97              (99)                   241     181

    Industrial Biosciences                                                                                                    45               37                    129     118

    Nutrition & Health                                                                                                        81               64                    218     248

    Performance Chemicals                                                                                                    182              410                    697   1,575

    Performance Materials                                                                                                    374              230                  1,002     851

    Safety & Protection                                                                                                      171               92                    481     432

    Pharmaceuticals                                                                                                            5               10                     27      53

    Other                                                                                                                   (112)             (85)                  (276)   (385)
                                                                                                                            ----              ---                   ----    ----

    Total Segment PTOI                                                                                                       741              461                  4,759   4,845

    Corporate expenses                                                                                                      (162)            (233)                  (582)   (708)

    Interest expense                                                                                                        (108)            (116)                  (340)   (347)

    Non-operating pension/OPEB costs                                                                                        (142)            (157)                  (415)   (507)

    Net exchange gains (losses) (1)                                                                                         (101)            (130)                   (55)   (161)
                                                                                                                            ----             ----                    ---    ----

    Income before income taxes from continuing operations                                                                   $228            $(175)                $3,367  $3,122
                                                                                                                            ====            =====                 ======  ======

                                                                                                                      Three Months Ended           Nine Months Ended
                                                                                                                         September 30,               September 30,
                                                                                                                         -------------               -------------

    SIGNIFICANT ITEMS BY SEGMENT (PRE-TAX) (2)                                                                              2013             2012                   2013    2012
    -----------------------------------------                                                                               ----             ----                   ----    ----

    Agriculture                                                                                                             $(40)           $(128)                 $(155)  $(443)

    Electronics & Communications                                                                                               -             (157)                     -     (35)

    Industrial Biosciences                                                                                                     -               (3)                     -      (3)

    Nutrition & Health                                                                                                         -              (13)                     -     (13)

    Performance Chemicals                                                                                                    (72)              (3)                   (72)     (3)

    Performance Materials                                                                                                      -             (101)                     -    (101)

    Safety & Protection                                                                                                        -              (55)                     -     (55)

    Pharmaceuticals                                                                                                            -                -                      -       -

    Other                                                                                                                      -                -                      -    (137)
                                                                                                                             ---              ---                    ---    ----

    Total significant items by segment                                                                                      (112)            (460)                  (227)   (790)

    Corporate expenses                                                                                                         -              (59)                   (11)    (59)

    Total significant items before income taxes                                                                            $(112)           $(519)                 $(238)  $(849)
                                                                                                                           =====            =====                  =====   =====

                                                                                                                      Three Months Ended           Nine Months Ended
                                                                                                                         September 30,               September 30,
                                                                                                                         -------------               -------------

    OPERATING EARNINGS                                                                                                      2013             2012                   2013    2012
    ------------------                                                                                                      ----             ----                   ----    ----

    Agriculture                                                                                                             $(62)            $(70)                $2,395  $2,215

    Electronics & Communications                                                                                              97               58                    241     216

    Industrial Biosciences                                                                                                    45               40                    129     121

    Nutrition & Health                                                                                                        81               77                    218     261

    Performance Chemicals                                                                                                    254              413                    769   1,578

    Performance Materials                                                                                                    374              331                  1,002     952

    Safety & Protection                                                                                                      171              147                    481     487

    Pharmaceuticals                                                                                                            5               10                     27      53

    Other                                                                                                                   (112)             (85)                  (276)   (248)
                                                                                                                            ----              ---                   ----    ----

    Total segment operating earnings                                                                                         853              921                  4,986   5,635

    Corporate expenses                                                                                                      (162)            (174)                  (571)   (649)

    Interest expense                                                                                                        (108)            (116)                  (340)   (347)
                                                                                                                            ----             ----                   ----    ----

    Operating earnings before income taxes and exchange gains (losses)                                                       583              631                  4,075   4,639

    Net exchange gains (losses) (1)                                                                                         (101)            (130)                   (55)   (161)

    Operating earnings before income taxes                                                                                  $482             $501                 $4,020  $4,478
                                                                                                                            ====             ====                 ======  ======

    (1)  See Schedule D for additional information on exchange gains and losses.

    (2)  See Schedule B for detail of significant items.


                                                                                       E. I. du Pont de Nemours and Company

                                                                                       Reconciliation of Non-GAAP Measures

                                                                                 (Dollars in millions, except per share amounts)

    SCHEDULE D

    Reconciliations of Adjusted EBIT / EBITDA to Consolidated Income Statements

                                                                                                                                   Three Months Ended                             Nine Months Ended
                                                                                                                                      September 30,                                 September 30,
                                                                                                                                      -------------                                 -------------

                                                                                                                                              2013                       2012                        2013        2012
                                                                                                                                              ----                       ----                        ----        ----

    Income from continuing operations before income taxes                                                                                     $228                      $(175)                     $3,367      $3,122

    Add: Significant items before income taxes                                                                                                 112                        519                         238         849

    Add: Non-operating pension/OPEB costs                                                                                                      142                        157                         415         507
                                                                                                                                               ---                        ---                         ---         ---

    Operating earnings before income taxes                                                                                                    $482                       $501                      $4,020      $4,478

    Less: Net income attributable to noncontrolling interests                                                                                    3                          3                          14          24

    Add:  Interest expense                                                                                                                     108                        116                         340         347
                                                                                                                                               ---                        ---                         ---         ---

    Adjusted EBIT from operating earnings                                                                                                      587                        614                       4,346       4,801

    Add: Depreciation and amortization                                                                                                         379                        393                       1,216       1,237
                                                                                                                                               ---                        ---                       -----       -----

    Adjusted EBITDA from operating earnings                                                                                                   $966                     $1,007                      $5,562      $6,038
                                                                                                                                              ====                     ======                      ======      ======

    Reconciliation of Operating Earnings Per Share (EPS) Outlook

    The reconciliation below represents the company's outlook on an operating earnings basis, defined as earnings from continuing operations excluding significant items and non-operating pension/OPEB costs.

                                                                                                                           Year Ended December 31,
                                                                                                                           -----------------------

                                                                                                                                 2013 Outlook                    2012 Actual
                                                                                                                                 ------------                    -----------

    Operating EPS                                                                                                                            $3.85                      $3.77

    Significant items
    -----------------

    Tax items                                                                                                                                 0.02                          -

    Sale of an equity method investment                                                                                                          -                       0.08

    Customer claims charges                                                                                                                  (0.11)                     (0.39)

    Restructuring charge/adjustments                                                                                                             -                      (0.17)

    Litigation settlement                                                                                                                    (0.05)                     (0.13)

    Asset impairment charge                                                                                                                      -                      (0.19)

    Sale of business                                                                                                                             -                       0.08

    Non-operating pension/OPEB costs - estimate                                                                                              (0.40)                     (0.46)

    Impact of LIFO accounting change                                                                                                             -                       0.02

    EPS from continuing operations (GAAP)                                                                                                    $3.31                      $2.61
                                                                                                                                             -----                      -----


                                                                          E. I. du Pont de Nemours and Company

                                                                          Reconciliation of Non-GAAP Measures

                                                                                 (Dollars in millions)

    SCHEDULE D (continued)

    Exchange Gains/Losses on Operating Earnings

    The company routinely uses forward exchange contracts to offset its net exposures, by currency, related to the foreign currency denominated
     monetary assets and liabilities of its operations. The objective of this program is to maintain an approximately balanced position in
     foreign currencies in order to minimize, on an after-tax basis, the effects of exchange rate changes. The net pre-tax exchange gains and
     losses are recorded in Other income, net and the related tax impact is recorded in Provision for (benefit from) income taxes on the
     Consolidated Income Statements.

                                                                    Three Months Ended             Nine Months Ended

                                                                      September 30,                   September 30,
                                                                      -------------                   -------------

                                                                                  2013                           2012                          2013   2012
                                                                                  ----                           ----                          ----   ----

    Subsidiary/Affiliate Monetary Position Gain (Loss)
    --------------------------------------------------

    Pre-tax exchange gains (losses)
     (includes equity affiliates)                                                  $29                            $91                         $(121)  $(50)

    Local tax benefits (expenses)                                                   13                             (6)                           32     10
                                                                                   ---                            ---                           ---    ---

    Net after-tax impact from subsidiary
     exchange gains (losses)                                                       $42                            $85                          $(89)  $(40)
                                                                                   ===                            ===                          ====   ====

    Hedging Program Gain (Loss)
    --------------------------

    Pre-tax exchange gains (losses)                                              $(130)                         $(221)                          $66  $(111)

    Tax benefits (expenses)                                                         45                             77                           (24)    38
                                                                                   ---                            ---                           ---    ---

    Net after-tax impact from hedging
     program exchange gains (losses)                                              $(85)                         $(144)                          $42   $(73)
                                                                                  ====                          =====                           ===   ====

    Total Exchange Gain (Loss)
    -------------------------

    Pre-tax exchange gains (losses)                                              $(101)                         $(130)                         $(55) $(161)

    Tax benefits (expenses)                                                         58                             71                             8     48
                                                                                   ---                            ---                           ---    ---

    Net after-tax exchange gains (losses)
     (1)                                                                          $(43)                          $(59)                         $(47) $(113)
                                                                                  ====                           ====                          ====  =====

    As shown above, the "Total Exchange Gain (Loss)" is the sum of the "Subsidiary/Affiliate Monetary Position Gain (Loss)" and the "Hedging
     Program Gain (Loss)."

    (1)  The above Net after-tax exchange gains (losses) excludes gains (losses) attributable to discontinued operations of $0 and $9 for the
     three months ended September 30, 2013 and 2012, respectively, and $(5) and $(11) for the nine months ended September 30, 2013 and 2012,
     respectively.


    Reconciliation of Base Income Tax Rate to Effective Income Tax Rate

    Base income tax rate is defined as the effective income tax rate less the effect of exchange gains (losses), as defined above, significant items and non-operating pension/OPEB costs.

                                                                                                                                                                                           Three Months Ended     Nine Months Ended

                                                                                                                                                                                              September 30,         September 30,
                                                                                                                                                                                              -------------         -------------

                                                                                                                                                                                                            2013                   2012    2013    2012
                                                                                                                                                                                                            ----                   ----    ----    ----

    Income from continuing operations before income taxes                                                                                                                                                   $228                  $(175) $3,367  $3,122

    Add:   Significant items - (benefit) charge (2)                                                                                                                                                          112                    519     238     849

    Non-operating pension/OPEB costs                                                                                                                                                                         142                    157     415     507

    Less:  Net exchange (losses) gains                                                                                                                                                                      (101)                  (130)    (55)   (161)
                                                                                                                                                                                                            ----                   ----     ---    ----

    Income from continuing operations before income taxes, significant items, exchange

    gains (losses), and non-operating pension/OPEB costs                                                                                                                                                    $583                   $631  $4,075  $4,639
                                                                                                                                                                                                            ====                   ====  ======  ======

    Provision for income taxes on continuing operations                                                                                                                                                     $(35)                 $(135)   $687    $654

    Add:  Tax benefits (expenses) on significant items                                                                                                                                                        41                    177     109     260

              Tax benefits (expenses) on non-operating pension/OPEB costs                                                                                                                                     47                     51     136     167

              Tax benefits (expenses) on exchange gains/losses                                                                                                                                                58                     71       8      48
                                                                                                                                                                                                             ---                    ---     ---     ---

    Provision for income taxes on operating earnings, excluding exchange gains (losses)                                                                                                                     $111                   $164    $940  $1,129
                                                                                                                                                                                                            ====                   ====    ====  ======

    Effective income tax rate                                                                                                                                                                             (15.4%)                  77.1%   20.4%   20.9%

    Significant items effect and non-operating pension/OPEB costs effect                                                                                                                                    26.4%                (58.5%)    2.8%    3.2%
                                                                                                                                                                                                            ----                 ------     ---     ---

    Tax rate, from continuing operations, before significant items and non-operating pension/OPEB costs                                                                                                     11.0%                  18.6%   23.2%   24.1%

    Exchange gains (losses) effect                                                                                                                                                                           8.0%                   7.4%  (0.1%)    0.2%
                                                                                                                                                                                                             ---                    ---   -----     ---

    Base income tax rate from continuing operations                                                                                                                                                         19.0%                  26.0%   23.1%   24.3%
                                                                                                                                                                                                            ====                   ====    ====    ====

    (2)  See Schedule B for detail of significant items.

SOURCE DuPont


Source: PR Newswire