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For DuPont, Christmas in April
Business Week; New York; Apr 24, 1995; Weber, Joseph;

Duns:00-136-8554Duns:00-131-5704
Edition: Industrial/technology edition
Issue: 3421
Special Volume/Issue: Industrial/Technology
UMI Publication No.: 01019878
02339239
Start Page: 128
Page Count: 3
Source Type: PERIODICAL
ISSN: 07398395
Subject Terms: Turnaround management
Success
Stock purchase plans
Corporate management
Chemical industry
Beverage industry
Securities buybacks
Corporate reorganization
Company profiles
Chief executive officers
Chemical industry
Classification Codes: 9190: US
8640: Chemical industry, includes rubber & plastics
8610: Food processing industry, includes beverages & liquors
3400: Investment analysis
2310: Planning
Geographic Names: US
Personal Names: Woolard, Edgar Smith Jr
Companies: Seagram & SonsDuns:00-136-8554
E I Dupont De Nemours & CoTicker:DDDuns:00-131-5704
Seagram & Sons
E I DuPont De Nemours & Co
UMI Article Re. No.: BWE-516-3
UMI Journal Code: BWE
Abstract:
While the recent Seagram Co. sale of DuPont Co. stock back to the chemical company strips Seagram of the source of 70% of its net income, DuPont's reduced equity base should add 10% a year to earnings-per-share. DuPont CEO Edgar S. Woolard Jr.'s savvy negotiations allow DuPont to effectively buy its stock back at 18% below market, saving $1.8 billion. Dupont's investors have pushed its shares up 2% to 62. Thanks to the need to fund the buyback, Woolard must sell $2 billion in assets - likely candidates are underperforming units that Wall Street has pushed for years for the company to sell. DuPont's transformation followed a crisis of competitiveness. Woolard began in 1991 by cutting thousands of middle-management posts, selling $2.8 billion in ill-fitting businesses, and reengineering those remaining. Although DuPont's 1994 sales rose just 6%, to $39.3 billion, net income - excluding one-time charges - increased 65% to a record $2.7 billion.