DuPont Co. said the strengthening U.S. dollar will dent its
earnings for the year more than it initially forecast in January,
as the company also reported sales declines across all of its
segments.
DuPont said it now expects currency to bring down its full-year
results by 80 cents, above the 60 cent negative impact the company
first estimated in January. The company still expects to come in at
the low end of its guidance of $4 to $4.20 a share in earnings,
however, as it ramps up cost cuts.
Separately, the company boosted its dividend by 4%.
The results come just weeks ahead of shareholder vote on adding
nominees from activist investment firm Trian Fund Management LP to
its board.
Trian says DuPont should slash bloated corporate spending and
simplify its businesses to improve earnings growth--perhaps by
splitting apart. Trian wants four board seats and is seeking to
oust the heads of several key board committees. Trian's campaign
has made DuPont one of the biggest companies to face such a proxy
fight with an activist.
Meanwhile, DuPont has been working on plans to cut $1 billion in
costs by 2020 and to shift away from lower-growth commodity
businesses toward higher-growth areas, such as nutritional products
and agriculture.
As part of the effort, DuPont is planning to spin off its
performance chemicals segment--best known for materials in nonstick
frying pans and house paints.
DuPont said Tuesday that the spinoff is on track for the middle
of this year.
Meanwhile, DuPont is struggling with the U.S. dollar's rise,
which makes its seeds, chemicals and food ingredients more
expensive for overseas buyers.
For the quarter ended March, DuPont said sales in its
agricultural business fell 10% to $3.94 billion. Sales in its
performance and chemicals division fell 14% to $1.36 billion.
Overall, DuPont reported a profit of $1.03 billion, or $1.13 a
share, down from $1.44 billion, or $1.54 a share, a year earlier.
Excluding pension costs and other items, operating earnings were
$1.34 a share a share.
Net sales fell 9.4% to $9.17 billion, while total revenue
slipped 7.6% to $9.37 billion.
Analysts polled by Thomson Reuters had expected a profit of
$1.31 a share and revenue of $9.41 billion.
Total expenses were down to $7.77 billion from $8.34 billion a
year earlier.
Write to Chelsey Dulaney at Chelsey.Dulaney@wsj.com
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