DU PONT SETTING $83M CHARGE FOR WRITE-DOWNS, SETTLEMENT
NEW YORK — DuPont said Friday that it will take two fourth-quarter charges totaling $83 million, or 15 cents a share, to cover the settlement of a class-action suit and to write down certain petroleum assets. In the fourth quarter, DuPont, Shell Chemical Corp. and Hoechst Celanese settled a class-action litigation in connection with allegedly defective plumbing systems. DuPont manufactures acetal resins from which some of the fittings for the plumbing were made. As a result, DuPont will pay up to 10 percent of certain costs for plumbing systems that are replaced under the terms of the settlement.
DuPont said it has made accruals in the past for estimated costs tied to this matter and will take a charge of $38 million, or 7 cents a share, in the quarter to cover its share of the remaining costs. Due to an accounting provision related to long-lived assets, DuPont will also log a $45 million charge, or 8 cents a share, in the same quarter for the write-down of some of its North American and European petroleum assets. In the fourth quarter ended Dec. 31, 1994, DuPont earned $646 million, or 95 cents a share, on sales of $10.1 billion. — Fairchild News Service