DuPont Swings to a Loss as Sales Drop
26 Januar 2016 - 2:10PM
Dow Jones News
DuPont Co., which last month struck a deal to merge with Dow
Chemical Co., swung to a loss in its latest quarter as sales fell
across all segments and were particularly hard-hit abroad due to
the strong U.S. dollar.
The Wilmington, Del.-based company, which makes products ranging
from pesticides to dietary fibers to building materials, has said
it would reshape its business ahead of the proposed tie-up with Dow
through measures including job cuts and $700 million in cost
reductions this year.
On Tuesday, DuPont said it is on pace to reduce operating costs
by about $1 billion on a run-rate basis by the end of year. "Our
merger process is on track," said Chief Executive Edward Breen, who
will remain CEO of the merged company, adding that planning has
begun to create three independent businesses in agriculture,
material science and specialty products.
In addition to the strong dollar, which makes its products more
expensive outside of the U.S., DuPont pointed to difficult global
economic conditions in agriculture and slower growth in emerging
markets for the fourth quarter and said those challenges would
continue.
For the year, the company expects to earn $2.95 to $3.10 a
share, including a higher-than-anticipated 64 cents per share in
cost savings. Analysts surveyed by Thomson Reuters have predicted
$1.31 in adjusted per-share profit this year.
In the fourth quarter, sales in its agriculture segment—DuPont's
largest—fell 11% from a year earlier as currency effects offset
gains from an improved price and product mix. Revenue from the
company's other businesses declined amid a mix of foreign exchange
hits, lower volume and less favorable pricing.
Overall for the quarter, DuPont reported a loss of $253 million,
or 29 cents a share, down from a profit of $683 million, or 74
cents a share, a year earlier. Excluding certain items, per-share
earnings fell to 27 cents from 57 cents.
Sales slid 9.4% to $5.3 billion. Stripping out the impact of
adverse exchange rates, sales fell 1%, the company said. Analysts
projected 26 cents in adjusted earnings per share on $5.53 billion
in revenue, according to Thomson Reuters.
Shares in the company, down 12% over the past three months
through Monday's close, were inactive premarket.
Write to Lisa Beilfuss at lisa.beilfuss@wsj.com
(END) Dow Jones Newswires
January 26, 2016 07:55 ET (12:55 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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