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October 24, 2006                                            Contact:    Anthony Farina
WILMINGTON, Del.                                                        302-774-4005
                                                                        anthony.r.farina@usa.dupont.com


             DUPONT REPORTS THIRD QUARTER 2006 EARNINGS OF $.52 PER SHARE;
                REVENUES GROW 7 PERCENT, OPERATING MARGINS INCREASE


                                                       Highlights

     •    The company reported third quarter 2006 earnings of $.52 per share versus a prior-year loss of
          $.09 per share.

     •    Excluding significant items, earnings per share were $.49, up 48 percent from the $.33 per share
          earned in the prior year.

     •    Revenues grew 7 percent reflecting 3 percent higher local prices, 3 percent higher volume, and a
          1 percent currency effect. Asia Pacific volume grew 11 percent.

     •    Raw material costs were $180 million higher than third quarter last year despite lower market
          prices for U.S. natural gas, but were fully offset by selling price increases.

     •    Fixed costs were lower than last year and continued the company’s trend of decreasing fixed costs
          as a percentage of sales.

     •    Segment pretax operating margin, excluding significant items, increased 1.6 percentage points
          versus last year, principally reflecting the benefits of higher average prices and lower fixed costs.


                    “We delivered strong results by executing our growth strategies and productivity initiatives,” said
Charles O. Holliday, Jr., DuPont chairman and chief executive officer. “Continued pricing momentum, customer-
driven product innovations, and cost control generated revenue gains, profit growth and margin expansion. We
are on track for a strong second half.”


Global Consolidated Net Income and Sales
                    Consolidated net income for the third quarter 2006 was $485 million, or $0.52 per share
including a $.03 benefit from initial insurance recoveries for prior-year hurricane damage. Net income for the
third quarter 2005 was a loss of $82 million, or $.09 per share, largely due to a tax charge of $320 million, or
$.32 per share, and a $95 million after-tax charge or $.10 per share for hurricane damage. Excluding
significant items, earnings per share were $.49 in the third quarter 2006 compared to $.33 in the prior year.

E. I. du Pont de Nemours and Company
2


                 The increase in third quarter 2006 net income principally can be attributed to higher sales
volume and local selling prices, and lower fixed costs. These benefits were partly offset by the impact of
higher ingredient costs.
                 Consolidated net sales for the third quarter were $6.3 billion versus $5.9 billion last year, up
7 percent, with double-digit increases in Asia Pacific and Europe. Local selling prices were higher in every
region, increasing worldwide sales 3 percent. Sales volume increased 3 percent, reflecting higher sales of
titanium dioxide, engineering and packaging polymers, industrial chemicals and electronic materials. The
company estimates that about 1 percentage point of worldwide volume growth can be attributed to recovery
from prior year business interruptions due to hurricanes Katrina and Rita.


                                    Three Months Ended                     Percentage Change Due to:
                                    September 30, 2006             Local           Currency
(Dollars in billions)                $            %                Price            Effect       Volume
                                               Change

U.S.                                $2.5            4%                3                 -            1
Europe                               1.7           11                 3                 4            4
Asia Pacific                         1.2           12                 2                (1)          11
Canada & Latin America               0.9            4                 3                 2           (1)

Total Consolidated Sales            $6.3             7                3                  1            3

Earnings Per Share
                 The table below shows the variances in third quarter 2006 earnings per share (EPS) versus
third quarter 2005, by major element:

                                             EPS ANALYSIS
                                                                           3rd Quarter
                        EPS – 2005                                           $(.09)
                        3Q'05 Significant items (see Schedule B)               .42
                                                                             $ .33

                           Local prices                                         .14
                           Volume                                               .05
                           Variable costs                                      (.13)
                           Fixed costs                                          .07
                           Currency                                             .02
                           Lower shares                                         .04
                           Other                                              (.03)
                             Subtotal                                          .49

                        3Q'06 Significant item (see Schedule B)                .03
                        EPS – 2006                                           $0.52
3


                 Improved local pricing fully offset higher raw material costs. Fixed cost productivity,
measured as a percent of sales, improved 4.2 percentage points versus last year, reflecting a $50 million year-
over-year reduction in total fixed costs and a 7 percent increase in sales. After adjusting for currency and
volume effects, after-tax fixed costs were $.07 per share lower than last year.


Business Segment Performance
                 Segment pretax operating income (PTOI) for third quarter 2006 was $900 million versus
$545 million in the prior year. Excluding a current quarter benefit of $50 million for initial insurance recoveries
and prior-year charges of $146 million for hurricane damages, PTOI was $850 million versus $691 million, up
23 percent. PTOI including significant items, sales, and percentage changes versus third quarter 2005 are shown
in the tables below.


                                                              Three Months Ended September 30
PRETAX OPERATING INCOME*                                                                  $ Change
(Dollars in millions)                                    2006             2005             vs. 2005
Agriculture & Nutrition                                  $(158)              $ (134)             $(24)
Coatings & Color Technologies                               276                  26              250
Electronic & Communication                                  135                 145              (10)
Technologies
Performance Materials                                        172                 68              104
Pharmaceuticals                                              210                197               13
Safety & Protection                                          292                256               36
Other                                                        (27)               (13)             (14)
    Total                                                $ 900               $ 545               $ 355

*     See Schedule B for significant items.


                                                                                            Percentage
                                                       Three Months Ended                Change Due to:
SEGMENT SALES*                                            September 30                 U.S. $
(Dollars in billions)                                   $         % Change             Price        Volume

Agriculture & Nutrition                               $1.0             (3)               -           (3)
Coatings & Color Technologies                          1.6              8                3            5
Electronic & Communication Technologies                1.0              4                2            2
Performance Materials                                  1.7             13                7            6
Safety & Protection                                    1.4             11                8            3

*     Segment sales include inter-segment transfers and a pro rata share of affiliates' sales.

                 The following are summaries of third quarter 2006 performance for the business segments.
Additional information on segment performance is available on the DuPont Investor Center website at
www.dupont.com.
4


Agriculture & Nutrition
•   Third quarter seasonal losses increased versus the prior year by $24 million, reflecting $30 million lower sales
    and higher cost of goods sold, partly offset by a gain on an asset sale.

•   Third quarter sales of $1.0 billion were down 3 percent. Higher sales for sulfonylurea products in cereals
    markets and share gains in corn and soybeans in Brazil were offset by southern hemisphere order timing and
    lower sales of soy protein products in the United States.

Coatings & Color Technologies
•   PTOI was $276 million including a $43 million initial insurance recovery, versus prior year PTOI of
    $26 million which included a $113 million hurricane charge. Excluding these items, earnings improvement
    reflects increases in titanium dioxide sales and margin improvement in all coatings product lines.

•   Third quarter sales were $1.6 billion, up 8 percent, reflecting 5 percent higher volume and 3 percent higher
    USD selling prices. Higher titanium dioxide and refinishes volume more than offset lower OEM coatings
    volume.

Electronic & Communication Technologies
•   PTOI was $135 million versus $145 million in the prior year, reflecting lower results for fluorochemicals and
    analog proofing product lines.

•   Third quarter sales were $1.0 billion, up 4 percent on 2 percent higher volume and 2 percent higher USD
    selling prices. Growth was primarily driven by increased demand in Asia for electronic materials.

Performance Materials
•   PTOI was $172 million versus $68 million in 2005 as higher prices and volume, and lower fixed costs in the
    engineering polymers, elastomers and packaging product lines more than offset higher raw material costs.

•   Third quarter sales of $1.7 billion increased 13 percent, reflecting 6 percent higher volume and 7 percent
    higher USD selling prices. Sales increased in all regions.

Safety & Protection
•   PTOI was $292 million, including $7 million from an initial insurance recovery, versus $256 million in the
    prior year, which included a $31 million gain on an asset sale and a $22 million hurricane charge. Excluding
    these items, earnings increased 15 percent due to higher sales and disciplined fixed cost control.

•   Third quarter sales of $1.4 billion were up 11 percent, reflecting 8 percent higher USD prices and
    3 percent higher volume.


Share Repurchase Program Update
                In the third quarter 2006, the company repurchased $100 million of its stock as part of its $5 billion
share repurchase program announced in October 2005, bringing the total amount repurchased to $3.3 billion. The
company anticipates completing the remaining $1.7 billion of the program, consistent with its financial discipline
principles, by the end of 2007. The company will continue to report its progress against this program.
5


Outlook
                    The company expects 2006 reported earnings to be about $2.86 per share, including the net
benefit of $.01 per share from year-to-date significant items. Excluding significant items, the company
reaffirms its full-year 2006 outlook of about $2.85 per share, which represents a 22 percent increase from the
$2.34 per share earned in the prior year on the same basis.
                    “We are confident we will deliver significantly higher year-over-year earnings in the fourth
quarter, even after adjusting for the hurricanes in 2005,” Holliday said. “We are taking the right actions and
continuing to invest in our exciting pipeline of new customer-driven products and technologies. Our momentum
will continue into 2007 and we expect to meet our long-term financial goal of 10 percent annual growth in
earnings per share.”


Use of Non-GAAP Measures
                    Management believes that measures of income excluding significant items (quot;non-GAAPquot;
information) 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 generally accepted accounting
principles (GAAP) and should not be viewed as an alternative to GAAP measures of performance.
Reconciliations of non-GAAP measures to GAAP are provided in Schedule E.
                    DuPont is a science-based products and services company. Founded in 1802, DuPont puts
science to work by creating sustainable solutions essential to a better, safer, healthier life for people everywhere.
Operating in more than 70 countries, DuPont offers a wide range of innovative products and services for markets
including agriculture and food; building and construction; communications; and transportation.
Forward-Looking Statements: This news release contains forward-looking statements based on management's current expectations,
estimates and projections. All statements that address expectations or projections about the future, including statements about the
company's strategy for growth, product development, market position, expected expenditures and financial results are forward-looking
statements. Some of the forward-looking statements may be identified by words like quot;expects,quot; quot;anticipates,quot; quot;plans,quot; quot;intends,quot;
quot;projects,quot; quot;indicates,quot; and similar expressions. These statements are not guarantees of future performance and involve a number of risks,
uncertainties and assumptions. Many factors, including those discussed more fully elsewhere in this release and in documents filed with
the Securities and Exchange Commission by DuPont, particularly its latest annual report on Form 10-K and quarterly report on Form 10-Q,
as well as others, could cause results to differ materially from those stated. These factors include, but are not limited to changes in the
laws, regulations, policies and economic conditions, including inflation, interest and foreign currency exchange rates, of countries 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 and development of new products, including regulatory approval and market
acceptance; seasonality of sales of agricultural products; and severe weather events that cause business interruptions, including plant and
power outages, or disruptions in supplier and customer operations.

                                                                  ###
10/24/06
6


                                                      E. I. du Pont de Nemours and Company
                                                           Consolidated Income Statement
                                                   (Dollars in millions, except per share amounts)

SCHEDULE A
                                                                        Three Months Ended               Nine Months Ended
                                                                           September 30,                   September 30,
                                                                        2006           2005             2006           2005
                                                                    $    6,309                      $ 21,145
Net Sales                                                                          $    5,870                      $    20,812
Other Income, Net (a)                                                      336                           1,002
                                                                                         438                             1,444
Total                                                                    6,645          6,308           22,147          22,256

Cost of Goods Sold and Other Operating Charges (b)                       4,762                          15,326
                                                                                        4,709                           14,980
Selling, General and Administrative Expenses                               756                           2,400
                                                                                          751                            2,424
Amortization of Intangible Assets                                           57                             172
                                                                                           57                              171
Research and Development Expense                                           320                             961
                                                                                          324                              976
Interest Expense                                                           114                             347
                                                                                          140                              364
Separation Activities - Textiles & Interiors (c)                               -                               -
                                                                                          (23)                                (62)
Total                                                                    6,009          5,958           19,206          18,853

Income Before Income Taxes and Minority Interests (d)                      636           350             2,941           3,403
Provision for Income Taxes (e)                                             152                             662
                                                                                         435                             1,461
Minority Interests in Earnings (Losses) of Consolidated
Subsidiaries                                                                (1)                                2
                                                                                              (3)                             42
Net Income / (Loss)                                                 $      485     $      (82)      $    2,277     $     1,900
                                                        (f)
Basic Earnings (Loss) Per Share of Common Stock                     $     0.52                      $     2.46
                                                                                   $    (0.09)                     $      1.90

Diluted Earnings (Loss) Per Share of Common Stock (f)               $     0.52                      $     2.44
                                                                                   $    (0.09)                     $      1.89

Dividends Per Share of Common Stock                                 $     0.37                      $     1.11
                                                                                   $     0.37                      $      1.09
7


                                         E. I. du Pont de Nemours and Company
                                        Notes to Consolidated Income Statement
                                      (Dollars in millions, except per share amounts)

(a) Year-to-date 2006 includes a reversal of accrued interest of $7 associated with the favorable settlement
    of certain prior year tax contingencies which had been previously reserved.

   Third quarter 2005 includes a gain of $31 from sale of certain North American assets in the Safety &
   Protection segment. Year-to-date 2005 also includes a gain of $23 resulting from the disposition of
   certain assets of DuPont Dow Elastomers LLC (DDE) to the Dow Chemical Company, a $28 benefit
   related to interest on certain prior year tax contingencies, and a gain of $48 resulting from the sale of the
   company's equity interest in DuPont Photomasks, Inc.

(b) Third quarter 2006 includes a benefit of $50 resulting from initial insurance recoveries relating to the
    damage suffered from hurricane Katrina in 2005. Pretax amounts by segment were: $43 - Coatings &
    Color Technologies and $7 - Safety & Protection. Year-to-date 2006 also includes a restructuring charge
    of $135 in the Coatings & Color Technologies segment in connection with the Company's plans to close
    and consolidate certain manufacturing and laboratory sites. The charge consists of employee separation
    costs, primarily in Europe, for approximately 1,300 employees and other exit costs.

   During the third quarter 2005, the company recorded charges of approximately $146 for damaged
   facilities, inventory write-offs and clean-up costs related to the hurricanes. Pretax hurricane charges by
   segment were: $113 - Coatings & Color Technologies, $11 - Performance Materials and $22 - Safety &
   Protection. Year-to-date 2005 also includes a charge of $34 related to the shutdown of an Elastomers
   manufacturing facility in the United States.


(c) During the third quarter 2005, the company recorded a $23 benefit, primarily reflecting a gain on the
    sale of an equity affiliate associated with the separation of Textiles & Interiors. Year-to-date 2005
    includes a net gain of $39 relating to the disposition of three equity affiliates, partly offset by other
    separation costs.

(d) Year-to-date 2005 includes $14 of operating income related to certain DDE assets that were disposed of
    on June 30, 2005.

(e) Year-to-date 2006 includes a tax benefit of $31 associated with an increase in the deferred tax assets of a
    European subsidiary for a tax basis investment loss recognized on the local tax return and the reversal of
    $44 of income taxes associated with favorable settlement of certain prior-year tax contingencies which
    had been previously reserved.

   Third quarter 2005 includes charges of $320 for income taxes associated with the repatriation of
   $9.1 billion under the American Jobs Creation Act (AJCA). Year-to-date 2005 includes a net tax benefit
   of $24 related to certain prior year tax contingencies previously reserved.

(f) Earnings per share are calculated on the basis of the following average number of common shares
    outstanding:

                               Three Months Ended                                Nine Months Ended
                                  September 30,                                    September 30,
                            Basic               Diluted                      Basic               Diluted
          2006            922,023,399             927,231,880               921,620,506             928,809,510
          2005            995,464,491             995,464,491               995,928,331           1,002,579,254
8


                                             E. I. du Pont de Nemours and Company
                                                   Schedules of Significant Items
                                          (Dollars in millions, except per share amounts)

SCHEDULE B
SIGNIFICANT ITEMS
                                                           Pretax                      Aftertax                  ($ Per Share)
                                                    2006            2005        2006              2005         2006         2005
1st Quarter - Total                             $ (128)         $     -     $     (50)       $      -      $ (0.05)      $    -
2nd Quarter - Total                             $    -          $     118   $      31        $      111    $ 0.03        $   0.11
3rd Quarter:
 Hurricane-Related Items:
   Charges                                                      $ (146)                      $      (95)                 $ (0.10)
   Insurance Recoveries                         $      50                   $      33                      $    0.03

 American Jobs Creation Act                                                                        (320)                 $ (0.32)

3rd Quarter Total                               $      50       $ (146)     $      33        $ (415)       $    0.03     $ (0.42)




SIGNIFICANT ITEMS BY SEGMENT
                                                 Three Months Ended         Nine Months Ended
                                                    September 30,             September 30,
                                                  2006           2005        2006             2005
Agriculture & Nutrition                         $    -          $  -        $   -            $   -
Coatings & Color Technologies                          43         (113)         (92)           (113)
Electronic & Communication Technologies                 -             -           -                48
Performance Materials                                   -          (11)           -                (8)
Safety & Protection                                     7          (22)           7             (22)
Textiles & Interiors                                    -             -           -                 -
Other                                                   -             -           -               39
Total (excluding Corporate)                     $      50       $ (146)     $ (85)           $ (56)

Note: See Notes to Consolidated Income Statement for additional details.
9


                                           E. I. du Pont de Nemours and Company
                                           Consolidated Segment Information (1)
                                                     (Dollars in millions)

SCHEDULE C
                                                              Three Months Ended           Nine Months Ended
                                                                 September 30,               September 30,
                                                              2006            2005         2006           2005
SEGMENT SALES (2)
Agriculture & Nutrition                                      $   967         $   997      $ 5,234        $ 5,455
Coatings & Color Technologies                                  1,617           1,501        4,729          4,606
Electronic & Communication Technologies                          955             919        2,903          2,777
Performance Materials                                          1,739           1,539        5,189          5,160
Safety & Protection                                            1,405           1,268        4,223          3,938
                                                                                                              39
Other                                                             16              14           45
Total Segment Sales                                          $ 6,699         $ 6,238      $22,323        $21,975

Elimination of Transfers                                         (71)      (68)     (238)     (228)
Elimination of Equity Affiliate Sales                           (319)     (300)     (940)     (935)
Consolidated Net Sales                                       $ 6,309 # $ 5,870 # $21,145 # $20,812


                                                              Three Months Ended           Nine Months Ended
                                                                 September 30,               September 30,
                                                                 2006            2005         2006        2005
PRETAX OPERATING INCOME (LOSS) (PTOI)(3)

Agriculture & Nutrition                                      $ (158)         $ (134)      $     858      $ 1,134
Coatings & Color Technologies (b)                               276              26             513          375
Electronic & Communication Technologies (a)                     135             145             467          472
Performance Materials (a) (b) (d)                                    172            68          502         469
Pharmaceuticals                                                      210           197        579            548
Safety & Protection (a) (b)                                          292           256        871            770
Other (c)                                                            (27)          (13)       (83)           (27)
Total Segment PTOI                                           $       900     $     545    $ 3,707        $ 3,741

Exchange Gains and Losses (4)                                          (3)          71            5          365
Corporate Expenses & Net Interest (a)                                (261)        (266)        (771)        (703)

Income Before Income Taxes and
  Minority Interests                                         $       636     $     350    $ 2,941        $ 3,403

(1) Certain reclassifications of segment data have been made to reflect changes in organizational
     structure.
(2) Sales for the reporting segments include transfers and a pro rata share of equity affiliate sales.
(3) Refer to the Notes to Consolidated Income Statement for additional information on significant
     items included in the reported results.
(4) Net after-tax exchange activity for third quarter 2006 and 2005 were a loss of $7 and a gain of
    $19, respectively. Gains and losses resulting from the company's hedging program are largely
    offset by associated tax effects.
10


                                          E. I. du Pont de Nemours and Company
                                           Consolidated Income Statement Data
                                       (Dollars in millions, except per share amounts)

SCHEDULE D
                                                    Three Months Ended                   Nine Months Ended
                                                       September 30,                       September 30,
                                               2006        2005        % Chg.       2006       2005      % Chg.
Consolidated Net Sales                        $ 6,309     $ 5,870          7%      $21,145    $20,812        2%
Segment Sales                                   6,699       6,238           7       22,323     21,975         2
Segment PTOI                                      900         545          65        3,707      3,741        (1)
Adjusted EBIT*                                    743         459          62        3,249      3,612       (10)
Adjusted EBITDA*                                1,087         788          38        4,263      4,598        (7)
Income Before Income Taxes
  and Minority Interests                         636           350         82        2,941      3,403        (14)
EPS - Diluted                                    0.52        (0.09)       n.m.        2.44       1.89         29

* See Reconciliation of Non-GAAP measures (Schedule E).
11


                                          E. I. du Pont de Nemours and Company
                                          Reconciliation of Non-GAAP Measures
                                       (Dollars in millions, except per share amounts)

SCHEDULE E

Reconcilations of Adjusted EBIT / Adjusted EBITDA to Consolidated Income Statement
                                                               Three Months Ended               Nine Months Ended
                                                                  September 30,                    September 30,
                                                               2006          2005               2006          2005

Income Before Income Taxes and Minority Interests          $        636    $     350      $      2,941     $   3,403
Less: Minority Interest in Earnings (Losses) of
  Consolidated Subsidiaries (1)                                    (1)            10                (4)          (44)
Add: Net Interest Expense (2)                                     108             99               312           253
Adjusted EBIT                                                     743            459             3,249         3,612
Add: Depreciation and Amortization (3)                            344            329             1,014           986
Adjusted EBITDA                                            $    1,087      $     788      $      4,263     $   4,598

(1) Excludes income taxes.
(2) Includes interest expense plus amortization of capitalized interest less interest income.
(3) Excludes amortization of capitalized interest.


Reconciliation of Segment PTOI
                                                                    Three Months Ended
                                                                       September 30,
                                                               2006        2005       % Change

Segment PTOI before Significant Items                      $        850    $     691               23%
Significant Items included in September PTOI (per
  Schedule B)                                                       50          (146)
Segment PTOI                                               $        900    $     545               65%


Reconciliation of Earnings Per Share (EPS)
                                                                    Three Months Ended
                                                                       September 30,
                                                               2006        2005       % Change

Earnings Per Share before Significant Items                $     0.49      $    0.33               48%
Significant Items included EPS                                   0.03          (0.42)
Reported EPS                                               $     0.52      $   (0.09)              n.m.
12


                                        E. I. du Pont de Nemours and Company
                                        Reconciliation of Non-GAAP Measures
                                     (Dollars in millions, except per share amounts)

SCHEDULE E (continued)

Reconciliation of Earnings Per Share (EPS) Outlook

                                                             Year Ended
                                                            December 31,
                                                         2006         2005
                                                        Outlook       Actual

Earnings Per Share before Significant Items             $     2.85         $     2.34
Significant Items included EPS:
  Coatings & Color Technologies -
     Restructuring Charges                                   (0.10)               -
  American Jobs Creation Act                                   -                (0.29)
  Hurricane Related Items                                     0.03              (0.09)
  Textiles & Interiors - Separation Charges                    -                 0.03
  Sale of Photomasks Stock                                     -                 0.03
  Corporate Tax-Related Items                                 0.08               0.05
Net Charge for Significant Items                              0.01              (0.27)
Reported EPS                                            $     2.86         $     2.07




Reconcilations of Segment PTOI as Percent of Segment Sales
                                                                       Three Months Ended
                                                                          September 30,
                                                            2006               2005      % Change

Segment PTOI before Significant Items                   $        850       $     691         23%
Segment Sales                                           $    6,699         $    6,238         7%

PTOI as Percent of Segment Sales                            12.69%             11.08%
13


                                         E. I. du Pont de Nemours and Company
                                         Reconciliation of Non-GAAP Measures
                                      (Dollars in millions, except per share amounts)

SCHEDULE E (continued)

Reconcilations of Base Income Tax Rate to Effective Income Tax Rate

                                                             Three Months Ended             Nine Months Ended
                                                                September 30,                 September 30,
                                                             2006            2005           2006            2005

Income Before Income Taxes and Minority Interests        $        636    $     350      $    2,941      $    3,403
Remove: Significant Items - Charge/(Benefit)                      (50)         146              78              28
            Net Exchange (Gains)/Losses                             3          (71)             (5)           (365)
Income Before Income Taxes, Significant
  Items, Exchange Gains/Losses and Minority
  Interests                                                       589          425           3,014           3,066

Provision for Income Taxes                                        152          435            662            1,461
Remove: (Expense)/Benefit
  Tax on Significant Items                                        (17)         (269)            92            (276)
  Tax on Exchange Gains                                            (4)          (52)           (24)           (396)
Provision for Income Taxes, Excluding
  Taxes on Significant Items and Exchange Gains          $        131    $     114      $     730       $     789

Effective Income Tax Rate                                     23.9%          124.3%          22.5%           42.9%
Base Income Tax Rate                                          22.2%           26.7%          24.2%           25.7%


Reconcilations of Fixed Costs as a Percent of Sales

                                                             Three Months Ended             Nine Months Ended
                                                                September 30,                 September 30,
                                                             2006            2005           2006            2005

Total Charges and Expenses - Consolidated                     6,009           5,958         19,206          18,853
Income Statement
Remove:
  Interest Expense                                              114             140            347             364
  Fixed Costs - Textiles & Interiors                            -               -              -                18
  Separation Charges - Textiles & Interiors                     -               (23)           -               (62)
  Variable Costs (1)                                          3,124           2,822         10,067           9,468
  Significant Items - Charge/(Benefit) (2)                      (50)            146              85            180
     Fixed Cost                                               2,821           2,873          8,707           8,885
Consolidated Net Sales                                        6,309           5,870         21,145          20,812
Fixed Costs as a Percent of Sales                             44.7%           48.9%          41.2%           42.7%

(1) Includes variable manufacturing costs, freight, commissions and other selling expenses which vary
    with the volume of sales
(2) See Schedule B for detail of significant items.

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du pont Earnings Release2006 3rd

  • 1. October 24, 2006 Contact: Anthony Farina WILMINGTON, Del. 302-774-4005 anthony.r.farina@usa.dupont.com DUPONT REPORTS THIRD QUARTER 2006 EARNINGS OF $.52 PER SHARE; REVENUES GROW 7 PERCENT, OPERATING MARGINS INCREASE Highlights • The company reported third quarter 2006 earnings of $.52 per share versus a prior-year loss of $.09 per share. • Excluding significant items, earnings per share were $.49, up 48 percent from the $.33 per share earned in the prior year. • Revenues grew 7 percent reflecting 3 percent higher local prices, 3 percent higher volume, and a 1 percent currency effect. Asia Pacific volume grew 11 percent. • Raw material costs were $180 million higher than third quarter last year despite lower market prices for U.S. natural gas, but were fully offset by selling price increases. • Fixed costs were lower than last year and continued the company’s trend of decreasing fixed costs as a percentage of sales. • Segment pretax operating margin, excluding significant items, increased 1.6 percentage points versus last year, principally reflecting the benefits of higher average prices and lower fixed costs. “We delivered strong results by executing our growth strategies and productivity initiatives,” said Charles O. Holliday, Jr., DuPont chairman and chief executive officer. “Continued pricing momentum, customer- driven product innovations, and cost control generated revenue gains, profit growth and margin expansion. We are on track for a strong second half.” Global Consolidated Net Income and Sales Consolidated net income for the third quarter 2006 was $485 million, or $0.52 per share including a $.03 benefit from initial insurance recoveries for prior-year hurricane damage. Net income for the third quarter 2005 was a loss of $82 million, or $.09 per share, largely due to a tax charge of $320 million, or $.32 per share, and a $95 million after-tax charge or $.10 per share for hurricane damage. Excluding significant items, earnings per share were $.49 in the third quarter 2006 compared to $.33 in the prior year. E. I. du Pont de Nemours and Company
  • 2. 2 The increase in third quarter 2006 net income principally can be attributed to higher sales volume and local selling prices, and lower fixed costs. These benefits were partly offset by the impact of higher ingredient costs. Consolidated net sales for the third quarter were $6.3 billion versus $5.9 billion last year, up 7 percent, with double-digit increases in Asia Pacific and Europe. Local selling prices were higher in every region, increasing worldwide sales 3 percent. Sales volume increased 3 percent, reflecting higher sales of titanium dioxide, engineering and packaging polymers, industrial chemicals and electronic materials. The company estimates that about 1 percentage point of worldwide volume growth can be attributed to recovery from prior year business interruptions due to hurricanes Katrina and Rita. Three Months Ended Percentage Change Due to: September 30, 2006 Local Currency (Dollars in billions) $ % Price Effect Volume Change U.S. $2.5 4% 3 - 1 Europe 1.7 11 3 4 4 Asia Pacific 1.2 12 2 (1) 11 Canada & Latin America 0.9 4 3 2 (1) Total Consolidated Sales $6.3 7 3 1 3 Earnings Per Share The table below shows the variances in third quarter 2006 earnings per share (EPS) versus third quarter 2005, by major element: EPS ANALYSIS 3rd Quarter EPS – 2005 $(.09) 3Q'05 Significant items (see Schedule B) .42 $ .33 Local prices .14 Volume .05 Variable costs (.13) Fixed costs .07 Currency .02 Lower shares .04 Other (.03) Subtotal .49 3Q'06 Significant item (see Schedule B) .03 EPS – 2006 $0.52
  • 3. 3 Improved local pricing fully offset higher raw material costs. Fixed cost productivity, measured as a percent of sales, improved 4.2 percentage points versus last year, reflecting a $50 million year- over-year reduction in total fixed costs and a 7 percent increase in sales. After adjusting for currency and volume effects, after-tax fixed costs were $.07 per share lower than last year. Business Segment Performance Segment pretax operating income (PTOI) for third quarter 2006 was $900 million versus $545 million in the prior year. Excluding a current quarter benefit of $50 million for initial insurance recoveries and prior-year charges of $146 million for hurricane damages, PTOI was $850 million versus $691 million, up 23 percent. PTOI including significant items, sales, and percentage changes versus third quarter 2005 are shown in the tables below. Three Months Ended September 30 PRETAX OPERATING INCOME* $ Change (Dollars in millions) 2006 2005 vs. 2005 Agriculture & Nutrition $(158) $ (134) $(24) Coatings & Color Technologies 276 26 250 Electronic & Communication 135 145 (10) Technologies Performance Materials 172 68 104 Pharmaceuticals 210 197 13 Safety & Protection 292 256 36 Other (27) (13) (14) Total $ 900 $ 545 $ 355 * See Schedule B for significant items. Percentage Three Months Ended Change Due to: SEGMENT SALES* September 30 U.S. $ (Dollars in billions) $ % Change Price Volume Agriculture & Nutrition $1.0 (3) - (3) Coatings & Color Technologies 1.6 8 3 5 Electronic & Communication Technologies 1.0 4 2 2 Performance Materials 1.7 13 7 6 Safety & Protection 1.4 11 8 3 * Segment sales include inter-segment transfers and a pro rata share of affiliates' sales. The following are summaries of third quarter 2006 performance for the business segments. Additional information on segment performance is available on the DuPont Investor Center website at www.dupont.com.
  • 4. 4 Agriculture & Nutrition • Third quarter seasonal losses increased versus the prior year by $24 million, reflecting $30 million lower sales and higher cost of goods sold, partly offset by a gain on an asset sale. • Third quarter sales of $1.0 billion were down 3 percent. Higher sales for sulfonylurea products in cereals markets and share gains in corn and soybeans in Brazil were offset by southern hemisphere order timing and lower sales of soy protein products in the United States. Coatings & Color Technologies • PTOI was $276 million including a $43 million initial insurance recovery, versus prior year PTOI of $26 million which included a $113 million hurricane charge. Excluding these items, earnings improvement reflects increases in titanium dioxide sales and margin improvement in all coatings product lines. • Third quarter sales were $1.6 billion, up 8 percent, reflecting 5 percent higher volume and 3 percent higher USD selling prices. Higher titanium dioxide and refinishes volume more than offset lower OEM coatings volume. Electronic & Communication Technologies • PTOI was $135 million versus $145 million in the prior year, reflecting lower results for fluorochemicals and analog proofing product lines. • Third quarter sales were $1.0 billion, up 4 percent on 2 percent higher volume and 2 percent higher USD selling prices. Growth was primarily driven by increased demand in Asia for electronic materials. Performance Materials • PTOI was $172 million versus $68 million in 2005 as higher prices and volume, and lower fixed costs in the engineering polymers, elastomers and packaging product lines more than offset higher raw material costs. • Third quarter sales of $1.7 billion increased 13 percent, reflecting 6 percent higher volume and 7 percent higher USD selling prices. Sales increased in all regions. Safety & Protection • PTOI was $292 million, including $7 million from an initial insurance recovery, versus $256 million in the prior year, which included a $31 million gain on an asset sale and a $22 million hurricane charge. Excluding these items, earnings increased 15 percent due to higher sales and disciplined fixed cost control. • Third quarter sales of $1.4 billion were up 11 percent, reflecting 8 percent higher USD prices and 3 percent higher volume. Share Repurchase Program Update In the third quarter 2006, the company repurchased $100 million of its stock as part of its $5 billion share repurchase program announced in October 2005, bringing the total amount repurchased to $3.3 billion. The company anticipates completing the remaining $1.7 billion of the program, consistent with its financial discipline principles, by the end of 2007. The company will continue to report its progress against this program.
  • 5. 5 Outlook The company expects 2006 reported earnings to be about $2.86 per share, including the net benefit of $.01 per share from year-to-date significant items. Excluding significant items, the company reaffirms its full-year 2006 outlook of about $2.85 per share, which represents a 22 percent increase from the $2.34 per share earned in the prior year on the same basis. “We are confident we will deliver significantly higher year-over-year earnings in the fourth quarter, even after adjusting for the hurricanes in 2005,” Holliday said. “We are taking the right actions and continuing to invest in our exciting pipeline of new customer-driven products and technologies. Our momentum will continue into 2007 and we expect to meet our long-term financial goal of 10 percent annual growth in earnings per share.” Use of Non-GAAP Measures Management believes that measures of income excluding significant items (quot;non-GAAPquot; information) 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 generally accepted accounting principles (GAAP) and should not be viewed as an alternative to GAAP measures of performance. Reconciliations of non-GAAP measures to GAAP are provided in Schedule E. DuPont is a science-based products and services company. Founded in 1802, DuPont puts science to work by creating sustainable solutions essential to a better, safer, healthier life for people everywhere. Operating in more than 70 countries, DuPont offers a wide range of innovative products and services for markets including agriculture and food; building and construction; communications; and transportation. Forward-Looking Statements: This news release contains forward-looking statements based on management's current expectations, estimates and projections. All statements that address expectations or projections about the future, including statements about the company's strategy for growth, product development, market position, expected expenditures and financial results are forward-looking statements. Some of the forward-looking statements may be identified by words like quot;expects,quot; quot;anticipates,quot; quot;plans,quot; quot;intends,quot; quot;projects,quot; quot;indicates,quot; and similar expressions. These statements are not guarantees of future performance and involve a number of risks, uncertainties and assumptions. Many factors, including those discussed more fully elsewhere in this release and in documents filed with the Securities and Exchange Commission by DuPont, particularly its latest annual report on Form 10-K and quarterly report on Form 10-Q, as well as others, could cause results to differ materially from those stated. These factors include, but are not limited to changes in the laws, regulations, policies and economic conditions, including inflation, interest and foreign currency exchange rates, of countries 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 and development of new products, including regulatory approval and market acceptance; seasonality of sales of agricultural products; and severe weather events that cause business interruptions, including plant and power outages, or disruptions in supplier and customer operations. ### 10/24/06
  • 6. 6 E. I. du Pont de Nemours and Company Consolidated Income Statement (Dollars in millions, except per share amounts) SCHEDULE A Three Months Ended Nine Months Ended September 30, September 30, 2006 2005 2006 2005 $ 6,309 $ 21,145 Net Sales $ 5,870 $ 20,812 Other Income, Net (a) 336 1,002 438 1,444 Total 6,645 6,308 22,147 22,256 Cost of Goods Sold and Other Operating Charges (b) 4,762 15,326 4,709 14,980 Selling, General and Administrative Expenses 756 2,400 751 2,424 Amortization of Intangible Assets 57 172 57 171 Research and Development Expense 320 961 324 976 Interest Expense 114 347 140 364 Separation Activities - Textiles & Interiors (c) - - (23) (62) Total 6,009 5,958 19,206 18,853 Income Before Income Taxes and Minority Interests (d) 636 350 2,941 3,403 Provision for Income Taxes (e) 152 662 435 1,461 Minority Interests in Earnings (Losses) of Consolidated Subsidiaries (1) 2 (3) 42 Net Income / (Loss) $ 485 $ (82) $ 2,277 $ 1,900 (f) Basic Earnings (Loss) Per Share of Common Stock $ 0.52 $ 2.46 $ (0.09) $ 1.90 Diluted Earnings (Loss) Per Share of Common Stock (f) $ 0.52 $ 2.44 $ (0.09) $ 1.89 Dividends Per Share of Common Stock $ 0.37 $ 1.11 $ 0.37 $ 1.09
  • 7. 7 E. I. du Pont de Nemours and Company Notes to Consolidated Income Statement (Dollars in millions, except per share amounts) (a) Year-to-date 2006 includes a reversal of accrued interest of $7 associated with the favorable settlement of certain prior year tax contingencies which had been previously reserved. Third quarter 2005 includes a gain of $31 from sale of certain North American assets in the Safety & Protection segment. Year-to-date 2005 also includes a gain of $23 resulting from the disposition of certain assets of DuPont Dow Elastomers LLC (DDE) to the Dow Chemical Company, a $28 benefit related to interest on certain prior year tax contingencies, and a gain of $48 resulting from the sale of the company's equity interest in DuPont Photomasks, Inc. (b) Third quarter 2006 includes a benefit of $50 resulting from initial insurance recoveries relating to the damage suffered from hurricane Katrina in 2005. Pretax amounts by segment were: $43 - Coatings & Color Technologies and $7 - Safety & Protection. Year-to-date 2006 also includes a restructuring charge of $135 in the Coatings & Color Technologies segment in connection with the Company's plans to close and consolidate certain manufacturing and laboratory sites. The charge consists of employee separation costs, primarily in Europe, for approximately 1,300 employees and other exit costs. During the third quarter 2005, the company recorded charges of approximately $146 for damaged facilities, inventory write-offs and clean-up costs related to the hurricanes. Pretax hurricane charges by segment were: $113 - Coatings & Color Technologies, $11 - Performance Materials and $22 - Safety & Protection. Year-to-date 2005 also includes a charge of $34 related to the shutdown of an Elastomers manufacturing facility in the United States. (c) During the third quarter 2005, the company recorded a $23 benefit, primarily reflecting a gain on the sale of an equity affiliate associated with the separation of Textiles & Interiors. Year-to-date 2005 includes a net gain of $39 relating to the disposition of three equity affiliates, partly offset by other separation costs. (d) Year-to-date 2005 includes $14 of operating income related to certain DDE assets that were disposed of on June 30, 2005. (e) Year-to-date 2006 includes a tax benefit of $31 associated with an increase in the deferred tax assets of a European subsidiary for a tax basis investment loss recognized on the local tax return and the reversal of $44 of income taxes associated with favorable settlement of certain prior-year tax contingencies which had been previously reserved. Third quarter 2005 includes charges of $320 for income taxes associated with the repatriation of $9.1 billion under the American Jobs Creation Act (AJCA). Year-to-date 2005 includes a net tax benefit of $24 related to certain prior year tax contingencies previously reserved. (f) Earnings per share are calculated on the basis of the following average number of common shares outstanding: Three Months Ended Nine Months Ended September 30, September 30, Basic Diluted Basic Diluted 2006 922,023,399 927,231,880 921,620,506 928,809,510 2005 995,464,491 995,464,491 995,928,331 1,002,579,254
  • 8. 8 E. I. du Pont de Nemours and Company Schedules of Significant Items (Dollars in millions, except per share amounts) SCHEDULE B SIGNIFICANT ITEMS Pretax Aftertax ($ Per Share) 2006 2005 2006 2005 2006 2005 1st Quarter - Total $ (128) $ - $ (50) $ - $ (0.05) $ - 2nd Quarter - Total $ - $ 118 $ 31 $ 111 $ 0.03 $ 0.11 3rd Quarter: Hurricane-Related Items: Charges $ (146) $ (95) $ (0.10) Insurance Recoveries $ 50 $ 33 $ 0.03 American Jobs Creation Act (320) $ (0.32) 3rd Quarter Total $ 50 $ (146) $ 33 $ (415) $ 0.03 $ (0.42) SIGNIFICANT ITEMS BY SEGMENT Three Months Ended Nine Months Ended September 30, September 30, 2006 2005 2006 2005 Agriculture & Nutrition $ - $ - $ - $ - Coatings & Color Technologies 43 (113) (92) (113) Electronic & Communication Technologies - - - 48 Performance Materials - (11) - (8) Safety & Protection 7 (22) 7 (22) Textiles & Interiors - - - - Other - - - 39 Total (excluding Corporate) $ 50 $ (146) $ (85) $ (56) Note: See Notes to Consolidated Income Statement for additional details.
  • 9. 9 E. I. du Pont de Nemours and Company Consolidated Segment Information (1) (Dollars in millions) SCHEDULE C Three Months Ended Nine Months Ended September 30, September 30, 2006 2005 2006 2005 SEGMENT SALES (2) Agriculture & Nutrition $ 967 $ 997 $ 5,234 $ 5,455 Coatings & Color Technologies 1,617 1,501 4,729 4,606 Electronic & Communication Technologies 955 919 2,903 2,777 Performance Materials 1,739 1,539 5,189 5,160 Safety & Protection 1,405 1,268 4,223 3,938 39 Other 16 14 45 Total Segment Sales $ 6,699 $ 6,238 $22,323 $21,975 Elimination of Transfers (71) (68) (238) (228) Elimination of Equity Affiliate Sales (319) (300) (940) (935) Consolidated Net Sales $ 6,309 # $ 5,870 # $21,145 # $20,812 Three Months Ended Nine Months Ended September 30, September 30, 2006 2005 2006 2005 PRETAX OPERATING INCOME (LOSS) (PTOI)(3) Agriculture & Nutrition $ (158) $ (134) $ 858 $ 1,134 Coatings & Color Technologies (b) 276 26 513 375 Electronic & Communication Technologies (a) 135 145 467 472 Performance Materials (a) (b) (d) 172 68 502 469 Pharmaceuticals 210 197 579 548 Safety & Protection (a) (b) 292 256 871 770 Other (c) (27) (13) (83) (27) Total Segment PTOI $ 900 $ 545 $ 3,707 $ 3,741 Exchange Gains and Losses (4) (3) 71 5 365 Corporate Expenses & Net Interest (a) (261) (266) (771) (703) Income Before Income Taxes and Minority Interests $ 636 $ 350 $ 2,941 $ 3,403 (1) Certain reclassifications of segment data have been made to reflect changes in organizational structure. (2) Sales for the reporting segments include transfers and a pro rata share of equity affiliate sales. (3) Refer to the Notes to Consolidated Income Statement for additional information on significant items included in the reported results. (4) Net after-tax exchange activity for third quarter 2006 and 2005 were a loss of $7 and a gain of $19, respectively. Gains and losses resulting from the company's hedging program are largely offset by associated tax effects.
  • 10. 10 E. I. du Pont de Nemours and Company Consolidated Income Statement Data (Dollars in millions, except per share amounts) SCHEDULE D Three Months Ended Nine Months Ended September 30, September 30, 2006 2005 % Chg. 2006 2005 % Chg. Consolidated Net Sales $ 6,309 $ 5,870 7% $21,145 $20,812 2% Segment Sales 6,699 6,238 7 22,323 21,975 2 Segment PTOI 900 545 65 3,707 3,741 (1) Adjusted EBIT* 743 459 62 3,249 3,612 (10) Adjusted EBITDA* 1,087 788 38 4,263 4,598 (7) Income Before Income Taxes and Minority Interests 636 350 82 2,941 3,403 (14) EPS - Diluted 0.52 (0.09) n.m. 2.44 1.89 29 * See Reconciliation of Non-GAAP measures (Schedule E).
  • 11. 11 E. I. du Pont de Nemours and Company Reconciliation of Non-GAAP Measures (Dollars in millions, except per share amounts) SCHEDULE E Reconcilations of Adjusted EBIT / Adjusted EBITDA to Consolidated Income Statement Three Months Ended Nine Months Ended September 30, September 30, 2006 2005 2006 2005 Income Before Income Taxes and Minority Interests $ 636 $ 350 $ 2,941 $ 3,403 Less: Minority Interest in Earnings (Losses) of Consolidated Subsidiaries (1) (1) 10 (4) (44) Add: Net Interest Expense (2) 108 99 312 253 Adjusted EBIT 743 459 3,249 3,612 Add: Depreciation and Amortization (3) 344 329 1,014 986 Adjusted EBITDA $ 1,087 $ 788 $ 4,263 $ 4,598 (1) Excludes income taxes. (2) Includes interest expense plus amortization of capitalized interest less interest income. (3) Excludes amortization of capitalized interest. Reconciliation of Segment PTOI Three Months Ended September 30, 2006 2005 % Change Segment PTOI before Significant Items $ 850 $ 691 23% Significant Items included in September PTOI (per Schedule B) 50 (146) Segment PTOI $ 900 $ 545 65% Reconciliation of Earnings Per Share (EPS) Three Months Ended September 30, 2006 2005 % Change Earnings Per Share before Significant Items $ 0.49 $ 0.33 48% Significant Items included EPS 0.03 (0.42) Reported EPS $ 0.52 $ (0.09) n.m.
  • 12. 12 E. I. du Pont de Nemours and Company Reconciliation of Non-GAAP Measures (Dollars in millions, except per share amounts) SCHEDULE E (continued) Reconciliation of Earnings Per Share (EPS) Outlook Year Ended December 31, 2006 2005 Outlook Actual Earnings Per Share before Significant Items $ 2.85 $ 2.34 Significant Items included EPS: Coatings & Color Technologies - Restructuring Charges (0.10) - American Jobs Creation Act - (0.29) Hurricane Related Items 0.03 (0.09) Textiles & Interiors - Separation Charges - 0.03 Sale of Photomasks Stock - 0.03 Corporate Tax-Related Items 0.08 0.05 Net Charge for Significant Items 0.01 (0.27) Reported EPS $ 2.86 $ 2.07 Reconcilations of Segment PTOI as Percent of Segment Sales Three Months Ended September 30, 2006 2005 % Change Segment PTOI before Significant Items $ 850 $ 691 23% Segment Sales $ 6,699 $ 6,238 7% PTOI as Percent of Segment Sales 12.69% 11.08%
  • 13. 13 E. I. du Pont de Nemours and Company Reconciliation of Non-GAAP Measures (Dollars in millions, except per share amounts) SCHEDULE E (continued) Reconcilations of Base Income Tax Rate to Effective Income Tax Rate Three Months Ended Nine Months Ended September 30, September 30, 2006 2005 2006 2005 Income Before Income Taxes and Minority Interests $ 636 $ 350 $ 2,941 $ 3,403 Remove: Significant Items - Charge/(Benefit) (50) 146 78 28 Net Exchange (Gains)/Losses 3 (71) (5) (365) Income Before Income Taxes, Significant Items, Exchange Gains/Losses and Minority Interests 589 425 3,014 3,066 Provision for Income Taxes 152 435 662 1,461 Remove: (Expense)/Benefit Tax on Significant Items (17) (269) 92 (276) Tax on Exchange Gains (4) (52) (24) (396) Provision for Income Taxes, Excluding Taxes on Significant Items and Exchange Gains $ 131 $ 114 $ 730 $ 789 Effective Income Tax Rate 23.9% 124.3% 22.5% 42.9% Base Income Tax Rate 22.2% 26.7% 24.2% 25.7% Reconcilations of Fixed Costs as a Percent of Sales Three Months Ended Nine Months Ended September 30, September 30, 2006 2005 2006 2005 Total Charges and Expenses - Consolidated 6,009 5,958 19,206 18,853 Income Statement Remove: Interest Expense 114 140 347 364 Fixed Costs - Textiles & Interiors - - - 18 Separation Charges - Textiles & Interiors - (23) - (62) Variable Costs (1) 3,124 2,822 10,067 9,468 Significant Items - Charge/(Benefit) (2) (50) 146 85 180 Fixed Cost 2,821 2,873 8,707 8,885 Consolidated Net Sales 6,309 5,870 21,145 20,812 Fixed Costs as a Percent of Sales 44.7% 48.9% 41.2% 42.7% (1) Includes variable manufacturing costs, freight, commissions and other selling expenses which vary with the volume of sales (2) See Schedule B for detail of significant items.