Tags: DuPont | Earnings | Forecast | profit

DuPont Cuts Earnings Forecast on Weakening Electronics Demand

Friday, 09 Dec 2011 08:55 AM

DuPont Co. (DD), the most valuable U.S. chemical maker, cut its 2011 earnings forecast by 10 cents a share because of falling demand for consumer electronics and plastics and continued weak demand for construction products.

Profit will be $3.87 to $3.95 a share, the Wilmington, Delaware-based company said today in a statement. DuPont forecast last month full-year earnings of $3.97 to $4.05 a share. The average of 18 analysts’ estimates compiled by Bloomberg is for profit excluding one-time items of $4.04. DuPont dropped 6.6 percent.

“We are seeing slower growth in certain segments during the fourth quarter, driven by global economic uncertainty,” Chief Executive Officer Ellen Kullman said in the statement. “This uncertainty is contributing to ongoing conservative cash management in some supply chains.”

Kullman said customer inventories are “very low” as existing stock is used up, particularly in the polymers that DuPont sells to packaging makers. Texas Instruments Inc., a semiconductor manufacturer, yesterday forecast fourth-quarter revenue that was less than analysts’ estimates amid weaker demand for electronic components. DuPont’s produces materials for semiconductors, circuits and flat-panel displays.
`Strong' Agriculture

“This certainly is going to last into the first quarter and possibly into the second,” Mark Gulley, an analyst at Triconderoga Securities in New York, said in an interview. “Earnings growth is going to be back-end loaded in 2012.”

Gulley, who has a “buy” recommendation on the shares, said his profit estimates are under review.

DuPont acquired Danisco A/S in June for $7.1 billion to expand in food ingredients. That business and its agriculture unit are still “strong,” DuPont said today.

DuPont will hold its annual investor meeting in Wilmington on Dec. 12 and Dec. 13.

DuPont fell to $43.43 at 9:39 a.m. in New York.

© Copyright 2017 Bloomberg News. All rights reserved.

1Like our page
2Share
Companies
DuPont Co. (DD), the most valuable U.S. chemical maker, cut its 2011 earnings forecast by 10 cents a share because of falling demand for consumer electronics and plastics and continued weak demand for construction products. Profit will be $3.87 to $3.95 a share, the...
DuPont,Earnings,Forecast,profit
286
2011-55-09
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved