DuPont Beats Second-Quarter Estimates, Lifts Low End of Year Forecast

The chemicals maker lifts the low-end of its full-year earnings per share forecast as cost savings bolster its bottom line.
By Laura Board ,

Chemicals maker DuPont (DD) - Get Report on Tuesday exceeded forecasts in its second quarter thanks to lower input prices and cost cuts.

Revenue fell 1% to $7.1 billion but came in ahead of the $7.01 billion consensus compiled by Thomson Reuters. Revenue in DuPont's core agricultural division held steady at $3.2 billion.

Adjusted earnings per share were $1.24, ahead of analysts' forecasts of $1.10 and profit of $1.09 earned a year earlier. During the period DuPont achieved $160 million of cost savings on a GAAP basis.

"Our continued focus on our plan delivered strong results. Solid execution enabled volume growth of 2%, and we expanded operating margins across all reportable segments. Cost savings, mix enrichment from new technologies and lower product costs contributed to the margin expansion. Continued progress on our cost savings program keeps us on track to reach $1 billion on a run-rate basis by year-end," said DuPont Chairman and CEO Ed Breen in a statement.

The Wilmington, Del., company lifted the low end of its full-year forecast for operating earnings per share by 10 cents to $3.15, from the $3.05 a share low-end forecast it delivered in April. The top end of the forecast range remains $3.20.

DuPont said it expects 50% growth in operating earnings per share in the third quarter.

The company is currently moving ahead with a merger with Dow Chemical (DOW) - Get Report after shareholders cleared the $130 billion combination. The complex transaction will unite the two companies before they split into three separate entities.

Breen said the company still expects the merger to close later this year.

DuPont shares closed on Monday at $68.88, and were rising 1.5% in premarket trading.

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