April 26, 2016
by Jack Kaskey
DuPont Co., which plans to merge this year with Dow Chemical Co., raised its earnings outlook for 2016 after higher seed prices boosted first-quarter sales.
The company increased its full-year operating earnings forecast by 10 cents a share to $3.05 to $3.20 a share, saying negative tax and currency impacts will be less than previously estimated. Cost reductions of $730 million are on track for this year, DuPont said in a statement late Monday.
DuPont headquarters in Wilmington, Delaware. (Photo: Mark Makela/Getty Images)
Chief Executive Officer Ed Breen is eliminating 10% of the workforce as part of a plan to cut expenses ahead of the year-end merger with Dow, the biggest-ever combination in the chemical industry. First-quarter earnings excluding restructuring costs and other items were $1.26 a share, exceeding the $1.04 average of 17 estimates compiled by Bloomberg.
“Solid execution, local price and product mix gains, and higher corn area led to a strong start to the year for our ag business,” Breen said in the statement. “Our other businesses generally performed well, slightly above our expectations.”
Operating earnings rose in three of six business segments. Average prices for agriculture products such as corn seed gained 2%, DuPont said.
While sales in the agriculture unit, the company’s largest, dropped 4%, the revenue decline was smaller than that reported by rivals Monsanto Co. and Syngenta AG.
DuPont cut operating costs by 7% from a year earlier, while corporate expenses fell 44%.
To contact the reporter on this story:
Jack Kaskey in Houston at [email protected]
To contact the editors responsible for this story:
Brendan Case at [email protected]
© 2016 Bloomberg L.P
About the Author(s)
You May Also Like
Current Conditions for
Enter a zip code to see the weather conditions for a different location.
Pros and cons of H-2A guest farmworkersNov 30, 2023
Market expectations: What's on the horizon for grain and livestock?Nov 22, 2023
18 gifts for the farmer on your listNov 27, 2023
South American rains slash soybean pricesJan 18, 2023
The markets are telling the 2023 storyDec 01, 2023
AgriLife's first, 21st-century co-center to be builtDec 01, 2023
USDA exports – China buys soybeans, December 1, 2023Jan 19, 2023