DuPont Raises Guidance but Is Unclear on Recovery

DuPont

(DD) - Get Report

said cost reductions and improving agricultural sales will boost its first-quarter earnings above the most optimistic analyst forecasts.

"The change in

the first quarter outlook reflects lower fixed costs across most of its reporting segments, as well as somewhat stronger early season sales in its production agriculture businesses," the company said.

The chemical giant expects first-quarter earnings to top the high end of analyst forecasts compiled by First Call, which is 51 cents a share. The average estimate was 47 cents a share.

The company nevertheless said it remained unconvinced that the broader economy was bouncing back.

"Despite some firming in a number of its chemical and materials businesses versus the fourth quarter of 2001, there is still some uncertainty about the timing of a broad-based recovery in end user demand," DuPont said.

The shares were up 85 cents, or 1.8%, at $48.20 on Instinet.