DuPont reports strong earnings

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DuPont_oval_redDuPont reported first lower first quarter operating  earnings as  performance chemical income  offset strength  in agriculture. The performance did top analysts’ estimates and led to a increase in the company’s stock price.

DuPont reaffirmed its full year earnings outlook and today announced a 5 percent dividend increase.

Highlights included:

– Sales of $10.4 billion were up 2 percent, reflecting volume growth. A one percent increase in local prices was offset by currency impact.

– Record agriculture operating earnings of $1.5 billion were up 13 percent. Sales increased 14 percent driven by strong volume growth, particularly in North America and Latin America, and higher pricing from new seed and crop protection products.

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– Total segment operating earnings of $2.3 billion were down 8 percent, largely due to a $320 million decline (about $.26 EPS) in performance chemicals from last year’s high levels.

– The company completed the sale of the Performance Coatings segment,  (auto paint) executed a $1 billion share buyback and reduced its net debt.

– Cost productivity gains and restructuring savings are on track to meet or exceed full year targets.

“The first quarter finished as expected, with the strong Agriculture performance and Performance Chemicals’ decline from peak levels last year,” said DuPont CEO Ellen Kullman. “Our strategies for growth and improved return on capital are working as we continue to focus on delivering science-powered innovation and industry-leading productivity improvement. We remain committed to delivering value to our shareholders as demonstrated by executing our share buyback, strengthening our balance sheet and increasing our dividend.”

Click on this link for the full report:

 

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