Tags: dupont | profit | decline | outlook

DuPont Reports Profit Decline, Trims Full-Year Outlook

Tuesday, 24 Jul 2012 07:04 AM

DuPont Co., the second-largest U.S. chemical maker, said 2012 profit will be at the lower end of a previously forecast range because of economic and currency “uncertainties” and a higher tax rate.

The projected range for earnings excluding one-time items is $4.20 to $4.40 a share, compared with $3.93 in 2011, the Wilmington, Delaware-based company said Tuesday in a statement.

Second-quarter net income dropped to $1.18 billion, or $1.25 a share, from $1.22 billion, or $1.29, a year earlier. Profit excluding one-time costs related to damage from the herbicide Imprelis and a gain from the sale of an equity investment were $1.48 a share, beating the $1.46 average of 16 estimates compiled by Bloomberg.

Chief Executive Officer and Chairman Ellen Kullman is focusing DuPont on products that help meet global demand for food, energy and security. The agriculture unit, the company’s largest, increased profit 12 percent on higher sales of bio- engineered soybean and corn seed. U.S. crop prices are near record highs amid the worst drought in half a century.

“Farmer economics are really good on the back of strong pricing,” Hassan Ahmed, a New York-based analyst at Alembic Global Advisors who rates the shares neutral, said in a phone interview before the results were released.

DuPont has beaten profit estimates every quarter since Kullman became CEO in January 2009. She is targeting a 12 percent annual increase in per-share earnings through 2015.

Dow Chemical Co. is the biggest U.S. chemical maker by sales.

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Tuesday, 24 Jul 2012 07:04 AM
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