http://www.mariettatimes.com/news/story/079202004_new03duprfts.asp
The Marietta Times (Ohio)
Friday, July 09, 2004
Fine not likely to
hurt DuPont's profits
By Connie Cartmell, ccartmell@mariettatimes.com
When a corporation boasts
an annual revenue of $27 billion, as DuPont did in 2003, even a maximum $300
million fine for misconduct is a drop in the bucket.
Experts doubt any fine by the U.S. Enviromental Protection Agency will affect
the company, overall, in an adverse financial way.
But a string of expected protests is expected from the company before any
dollars change hands. Being in "hot water" doesn't mean this company
is cooked - just on the front burner.
"I haven't heard all the details yet, but this (announcement) should
not affect them at all unless it leads to a large number of class action suits,"
said Robert Voisinet, a certified financial planner (CFP) with Raymond James
Financial Services, 132 Fourth St.
The EPA announced it will fine DuPont anywhere from $1 million to $300 million
for its failure to comply with the technical reporting requirements of the
Toxic Substances Control Act (TSCA) and the Resource Conservation Recovery
Act regarding C8 or PFOA.
The chemical is an essential processing aid in producing
fluoropolymers. It is a main ingredient in the manufacture of Teflon, used
in hundreds of applications, well-known as the cooking surface of frying pans.
Voisinet isn't expecting a financial ripple fromThursday's announcement and
is advising clients to sit tight. There is no reason to sell DuPont stock,
he said.
"Their stock went down 20 cents today (Thursday), but that is not a significant
change," he said. "I don't see this (fine) as any reason to sell.
I would not expect the fine, even if it is the maximum, to impact this company
at all."
Voisinet's advice to stockholders is "hang on."
"If the stock continues to drop some, this also represents a buying opportunity,"
he said.
DuPont, with close to 2,000 employees at its Washington Works plant near Parkersburg,
denies the U.S. Environmental Protection Agency claim.
The company stands by earlier statements that there have been no human health
effects from the chemical.
In April, DuPont itself announced an employee health survey, called the most
comprehensive ever conducted, to determine if C8 has an adverse health effect
on its workers. Results of a study of more than 750 workers are expected to
be announced in September.
Environmentalists are closely watching the EPA's complaint against DuPont,
and the issued fines.
"The amount of the fines is pretty miniscule with regard to DuPont's
whole revenue picture," said Staci Putney of the Ohio Environmental Council
in Columbus.
But she sees a positive side.
"They are now being watched and the water is being carefully monitored,"
Putney said. "The public is aware. It's good to have some action."
When EPA fines are levied, it means the company is given notice to "clean
up their act," she said.
"This will only benefit public health," Putney said.
The Ohio Environmental Council is a statewide environmental watchdog group.
DuPont was founded in 1802, as an explosives company.
It was 100 years later when the company focus turned to chemicals, materials,
and energy.
Another environmental watchdog group, the Environmental Working Group out
of Washington, D.C., called the lack of a specific fine " a slap on the
wrist" and further indication that the federal EPA is weak when it comes
to taking a stand against big business. In a press release the group said
DuPont earns $200 million a year through its Teflon and other C-8 related
products. The EWG has called for the EPA to fine DuPont the maximum amount.
DuPont at a glance
• 2003 revenues: $27 billion.
• Employees worldwide: 77,000.
• Employees at Washington Works: 2,000.
• Global: Operating in 70 countries.
• Fortune 500: 67th largest U.S. industrial/service corporation.
• Founding: 1802, primarily an explosives company.
• Brands: Includes the DuPont Oval and DuPont
trademarks, Pioneer brand seeds, Teflon, fluoropolymers, films, fabric protectors,
fibers and dispersions, Corian solid surfaces, Kevlar, high strength materials,
and Tyvek, protective material.
Source: DuPont.com
