DuPont To Take $315 Mln Charge In Q4

(RTTNews) - Chemical giant EI DuPont De Nemours & Co. (DD) said that the new public company created following completion of the pending separation of its Performance Chemicals segment will be named The Chemours Company. DuPont noted that it will record a pre-tax charge to earnings of about $315 million in the fourth quarter 2014, in connection with redesign initiative.

"Today's announcements continue our solid progress to complete the separation of Performance Chemicals and create two strong, publicly traded companies with distinct value creation strategies," said DuPont Chair and Chief Executive Officer Ellen Kullman.

Following its separation from DuPont, Chemours will be a new, publicly traded global leader in titanium dioxide, fluoroproducts and chemical solutions.

As announced earlier this year, DuPont Executive Vice President Mark P. Vergnano will become President and Chief Executive Officer of Chemours. Mark E. Newman will serve as senior vice president and chief financial officer. BC Chong and Thierry F.J. Vanlancker will continue to lead the Titanium Technologies and the Fluoroproducts businesses, respectively.

Additional members of the new company's executive leadership team were announced today: Christian Siemer will lead the Chemical Solutions business; E. Bryan Snell will lead productivity and strategy; David Shelton will serve as general counsel and corporate secretary; Beth Albright will lead human resources; and Erich S. Parker will lead corporate communications.

The separation of Chemours from DuPont remains on track to be completed by mid-2015.

Prior to separation, Chemours expects to pay a one-time dividend to DuPont.

In connection with the redesign initiative, which remains on track, DuPont will record a pre-tax charge to earnings of about $315 million in the fourth quarter 2014. It comprises of about $160 million of employee separation costs, $140 million of asset related charges and $15 million of contract termination costs. The actions related to the fourth quarter charge are expected to be substantially complete by mid-2016 and will result in future cash payments of approximately $175 million, primarily related to the payment of severance and related benefits.

As disclosed on June 26, 2014, the redesign initiative is expected to contribute at least $1 billion in savings and DuPont said it will continue to identify additional areas of productivity across the organization.