DuPont reported slightly higher earnings in the second quarter, with the company reporting higher operating profit margins and a negative impact from a stronger U.S. dollar.
The company reported earnings per share of $1.18 compared to $1.17 in prior year.
The performance of DuPont will be closely watched by activist investor Nelson Peltz, who narrowly lost a bid to become a member of the board of the company.
Peltz has been quiet since losing that battle, but vowed to remain active in his efforts to push DuPont for further restructuring as a way to improve profits.
The company is now based at its Chestnut Run site, just outside Wilmington, with Chemours based at the former DuPont headquarters in downtown.
Performance Chemicals operating earnings were down 11 cents a share share from the prior year. GAPP (generally accepted accounting principles) earnings per share were $1.03 versus $1.15 in prior year.
Results were negatively affected by a stronger U.S. dollar. A large chunk of DuPont operations are overseas. Earnings would have risen by 15 percent without the currency difference.
Operating margins improved in 5 of the 6 ongoing operating segments which comprise the next generation DuPont including Performance Materials, Electronics & Communications, Agriculture, Nutrition & Health, and Safety & Protection. Margin improvement was primarily driven by increased productivity, a company release stated.
Cost reductions from operational changes also aided earnings.
DuPont expects full-year 2015 operating earnings to be about $3.10 per share, excluding $0.80 per share in previously anticipated full year earnings from Performance Chemicals, which was spun off into a company known as Chemours. That was a reduction from previous guidance and reflected softer markets in agriculture, CNBC reported.
Second quarter sales were $8.6 billion, down 11 percent versus prior year due to negative impacts from currency.
Performance Chemicals segment operating earnings were $113 million, or $0.10 per share, a 55 percent reduction versus prior year.
In the first quarter 2015, DuPont announced its intention to buy back shares using the approximately $4 billion of distribution proceeds received from Chemours.
In connection with the completion of the spin off, DuPont’s board has authorized the company to purchase and retire $2 billion of common stock by Dec. 31, 2015 with the remainder to be purchased and retired by Dec. 31, 2016. That timetable has been accelerated.
“We continued to improve margins across most of our ongoing businesses through our constant focus on productivity, even as we address industrywide challenges in agriculture and ongoing currency headwinds,” said Ellen Kullman, DuPont CEO. “With the separation of our Performance Chemicals segment now complete, the next generation DuPont is leveraging our innovation platform to drive greater growth and value, with a continued emphasis on cost productivity, actively managing our portfolio, and the disciplined return of capital.”
