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Exhibit 1
data)

Five-year Financial Summary, 1967-1971 ($ millions, except per share and ratio
1971

1970

1969

1968

1967

$3,848
357

$3,618
334

$3,632
356

$3,455
372

$3,079
314

Cash flow from operations

727

684

677

659

583

Earnings per share

Dividends per share

7.33
5.00

6.86
5.00

7.62
5.25

7.99
5.50

6.73
5.00

Average shares outstanding (000)

47,281

47,257

47,076

46,285

46,158

Balance Sheet
Net working capital
Net property, plant and equipment
Total assets

$1,221
2,002
3,999

$1,100
1,923
3,740

$1,107
1,803
3,453

$996
1,738
3,289

$874
1,724
3,071

307
3,095
3,402

216
2,964
3,180

186
2,854
3,040

162
2,697
2,859

125
2,557
2,682

60.23
143.75

57.67
113.38

55.53
133.38

53.09
162.75

50.22
163.25

$480
21
91

$438
37
30

$423
35
24

$394
23
37

$308
19
67

$592

$505

$482

$454

$394

Capital Expenditures

$454

$471

$391

$332

$454

Key Financial Ratios

Growth rate (%)
Sales
Profits

6.4
6.9

(0.4)
(6.2)

5.1
(4.3)

12.2
18.5

(2.5)
(19.3)

9.3
11.5

9.2
11.3

9.8
12.5

10.8
11.3

10.2
12.3

Current ratio

3.5

3.6

3.6

3.6

3.2

Debt and total capital (%)

9.0

6.8

6.1

5.7

4.7

Price earnings ratioa

Market value/Book valuea

19.6
2.4

16.5
2.0

17.5
2.4

20.4
3.1

24.2
3.3

Income Statement
Sales
Net income

Total debt
Shareholders equity
Total capital
Book value per share
Market value per sharea
Capital Sources
Cash flow retained
External equity financing (net)
Debt financing (net)
Total capital added

Return on sales (%)

Return on equity (%)

Based on midpoint of the years trading range for Du Ponts common shares.

Exhibit 2
Domestic TiO2 Production Capacity by Firm
1972 est.
000 tons
Du Pont
NL Industries
American Cyanamid
SCM
Gulf & Western
Kerr-McGee
Sherwin-Williams
PPG
Total (U.S. firms)
Imports
Total

325
230
90
75
70
45
25

860

860

%
38
27
10
9
8
5
3

100

100

1971
000 tons
277
268
82
78
70
39
27

841

841

%
33
32
10
9
8
5
3

100

100

1970
000 tons
252
268
90
78
70
37
27
18
840

840

Total Domestic TiO2 Shipments by Firm, Including Importsa

%
30
32
11
9
8
5
3
2
100

100

1972 est.
000 tonsb
220
180
80
65
60
45
30

680
50
730

%
30
25
11
9
8
6
4

93
7
100

1971
000 tonsb
222
209
72
64
26
37
26
10
666
41
707

1970
000 tonsb

31
30
10
9
4
5
4
1
94
6
100

Source: Federal Trade Commission, In the Matter of E. I. du Pont de Nemours & Co., Docket No. 9108, Complaint Counsels Exhibits Nos. CX121A, B; CX223A, B; and CX222.
a

Excluded exports.

Thousands of tons shipped.

Dollar value of shipments.

206
210
53
58
30
31
21
9
618
58
676

1972 est.
% $ millionsc
30
31
8
9
4
5
3
1
91
9
100

100
95
40
25
30
20
10

320
20
340

1971
% $ millionsc
29
28
12
7
9
6
3

94
6
100

98
102
30
26
11
12
12
4
296
15
311

1970
% $ millionsc
31
33
10
9
3
4
4
1
95
5
100

100
112
24
27
13
16
8
4
304
21
325

%
31
35
7
8
4
5
2
1
93
7
100

Exhibit 3
(tons 000)

TiO2 Production by Firm and Type of Process, 1970

Du Pontb
NL Industries
American Cyanamid
SCM
Gulf & Western
Kerr-McGee
Sherwin-Williams
PPG
Total

Total
Productiona

Sulfate
Process

Chloride
Process

211
229
56
51
33
35
19
10
644

43
193
47
48
33

364

168
36
9
3

35
19
10
280

Source: Federal Trade Commission, In the Matter of E. I. du Pont de Nemours &

Co., Docket No. 9108, Initial Decision, p. 11.
Differences between total production and total shipments (see Exbibit 2)
represent adjustments to TiO2 nventory.
a

Only Du Pont had chloride process production using low-grade feedstock; all
others used high-grade feedstock.
b

Exhibit 4

TiO2 Market Forecasts under Alternative Strategies for Du Pont, 1973-1985

Growth Strategy
Size of
Marketa
(tons 000)

1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985

752
774
798
822
846
872
898
925
952
981
1,010
1,041
1,072

Cost of New
Capacity ($
per ton)
900
927
955
983
1,013
1,043
1,075
1,107
1,140
1,174
1,210
1,246
1,283

Pretax
Operating
Expensesb
($ per ton)
330
390
460
540

Average Gross
Selling Price ($
per ton)

Du Pont
Market
Share (%)

540
640
750
880
580
620
660
690
710
740
770
810
850

950
1,010
1,070
1,130
1,190
1,250
1,310
1,370
1,430

35
40
47
47

Maintain Strategy
Du Pont
Capacity
(tons 000)
350
375
400
421

51
52
52
55
58
59
61
62
64

Total demand for TiO2 is forecast to grow at 3% annually and is not considered to be very sensitive to price.

Pretax operating expense per ton includes depreciation allowances but excludes interest expense.

Average Gross
Selling Price ($
per ton)
555
665
760
890

443
475
505
530
552
579
616
645
685

955
1,015
1,070
1,120
1,170
1,210
1,270
1,320
1,370

Du Pont
Market
Share (%)
35
40
45
45

Du Pont
Capacity
(tons 000)
340
350
360
370

45
45
45
45
45
45
45
45
45

381
392
404
416
428
441
455
468
482