NEW YORK (TheStreet) -- Shares of E. I. du Pont de Nemours and Co. (DD) - Get Report are gaining by 1.66% to $67.56 on Tuesday afternoon as the company said it would cut 1,700 jobs in Delaware at the beginning of 2016 ahead of its merger with Dow Chemical Co. (DOW).

"Given that we are in the middle of the holidays, we would have preferred to wait until individual notifications were complete before reporting the full local impact," Ed Breen, CEO of DuPont, said in a letter to employees cited by Bloomberg.

The company is legally required to file a notice with Delaware's state government specifying expected job cuts by December 31, Breen added.

DuPont and Dow announced their merger on December 11. At the time, Wilmington, Delaware-based DuPont said it expected to cut its 63,000 employees by 10% and reduce costs by $700 million, Bloomberg noted.

"The effect in Delaware will be significant, reflecting the urgent need to restructure our cost base and, as part of that effort, reduce our corporate overhead costs so that we can remain competitive," Breen said in the letter.

Shares of Dow are up by 1.18% to $52.38 on Tuesday afternoon.

Separately, recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:

We rate DU PONT (E I) DE NEMOURS as a Buy with a ratings score of B-. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, notable return on equity, expanding profit margins and reasonable valuation levels. We feel its strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The debt-to-equity ratio is somewhat low, currently at 0.90, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.24, which illustrates the ability to avoid short-term cash problems.
  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. In comparison to other companies in the Chemicals industry and the overall market on the basis of return on equity, DU PONT (E I) DE NEMOURS has underperformed in comparison with the industry average, but has greatly exceeded that of the S&P 500.
  • 38.33% is the gross profit margin for DU PONT (E I) DE NEMOURS which we consider to be strong. Regardless of DD's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 4.79% trails the industry average.
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 18.1%. Since the same quarter one year prior, revenues fell by 17.5%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • You can view the full analysis from the report here: DD