Document wqj5ZnR5BemYwJ3v6qjeOkwXE

CM-J REV. 7M tSTtflltNCDiW E. I. d u Po n t d e Ne mo u r s & Co mp a n y INCORPORATED Wil min g t o n , De l a w a r e 19898 CHEMICALS AND PIGMENTS DEPARTMENT May 12, 1981 TO: ADDRESSEES FROM: W. H. MC COY COST REDUCTION PROGRAM 1981 FIRST QUARTER RESULTS HIGHLIGHTS First quarter savings totaled $16.6MM. This is 40% of the firm commitment of $40.8MM for the year and 28% of the $59MM goal. The current estimate of year-end savings on a threemonths actual plus nine-month forecast is $60.1MM. This amount is 101.6% of goal or 147% of the firm commitment. Ten plants forecast savings in excess of $1MM each. Together, they account for 90% of the dollar savings expected. Five plants are expected to exceed their goal by greater than 10%. Two of those are in the over $1MM savings category (DeLisle and Houston). Seven plants anticipate falling short of goal by, more than 10%. Only three of these, though, are'in the $1MM plus savings category and only one does not expect to make its "firm" forecast (Niagara). Niagara's anticipated shortfall (-$220M or 11% firm) is centered primarily in the Teracol operation. Delay in start-up of the fourth reactor and usage of the gulftronic separator have delayed realization of yield improvements (-$155M in 1981). Full savings from the installation are still expected and appropriate credit will be booked in 1982. Under present conditions, of all out operation it is doubtful that a forecast labor reduction will be achieved (-$113M). 2 Of the $16.5MM saved in the first quarter, 34% was ingredients, 20% energy, 18% maintenance materials, 16% labor and salaries, and 12% all other. Major deviations from forecast (greater than $100M shortfall vs. firm or $100M in excess of goal on an individual program) are commented on below: Plant/Program Shortfall vs. Firm Forecast ($M) Excess vs. "Goal" Forecast ($M) Johnsonville Alternate Coke CI2 Reduced Price 710 850 Niagara Reduced Teracol Operating Labor 113.4 Houston Eliminate Inlet Scrubber Purge Recycle 112.5 Edge Moor Steam Elimination - Vortac 275 Antioch Low Grade Ore Consumption Ore Freight Savings DeLisle Ferrous Operation Reduced HC1 Price Reduced Coke Price Natural Gas Conversion - - 200 100 250 160 560 427 Memphis HCN Reduced NH3/Gas Usage h 22 Reduced DIBC Usage H2O2 Reduced Catalyst Usage H2O2 Reduced Quinones H2O2 Reduced All Other Material 135 - 454 149 183 192 DU P05014571 7 3 Shortfall vs. Firm Forecast Plant/Program_______________________ ($M) Excess vs. "Goal" Forecast ($M) Memphis (cont'd) Reduced Overtime - Maintenance Contract Administration HCN - Reduced Steam Purchasing Savings 573 360 620 220 Chambers Works (by category) Manufacturing Ingredients Energy Others 363 288 1153 Services (by category - not allocated) Ingredients Labor and Salaries Maintenance Materials Energy Others - 315 1454 2355 98 131 East Chicago General Contracting 251 Belle Waste Stripper Recycle - Amines Column Control - Energy Added MeOH Storage Reduced Tank Car Fleet 125 300 140 120 Newark Cont. Process - Mfg. 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