The company said the plan includes actions aimed at generating annual revenue growth of 6%, a target DuPont said represents a "key objective in its ongoing transformation to become a sustainable growth company." The company said specifics of the program would be disclosed in early 2004.
DuPont Chairman and CEO Charles O. Holliday Jr. said the company will take the actions "to remain competitive in an environment defined by sustained high energy costs, increased global competitive intensity, and a customer base that is shifting toward emerging economies." Holliday said that following the sale of DuPont's INVISTA fibers business, "DuPont will be a smaller company with the potential for higher growth and profitability." DuPont recently announced an agreement to sell INVISTA to Koch Industries Inc. for $4.4 billion.
DuPont said it will publicly disclose details on employment reductions and restructuring charges in its first-quarter 2004 earnings announcement, scheduled for April 27. The company said the moves will include staff functions, support services and manufacturing operations, including corporate costs.
The company also said it will seek to boost margins by consolidating product lines by at least 20%, and optimizing assets following those consolidations. In addition, the company said it will allocate greater resources toward emerging markets, with an initial focus on China. Other "areas of interest" include central and eastern Europe and Brazil.
Operationally, the company said it will "center and strengthen its market and sales-support functions," and pursue a research-and-development "revitalization process" that is already under way.