DuPont Lifts 2016 Operating EPS View

(RTTNews) - Chemical giant EI DuPont De Nemours & Co. (DD) or DuPont said that it now expects full-year 2016 operating earnings to increase 17 percent versus prior year to $3.25 per share, up from previously communicated range of $3.15 - $3.20 per share. The estimated headwind from a higher base tax rate is now expected to be about $0.07 per share. Analysts polled by Thomson Reuters expect the company to report earnings of $3.20 per share for fiscal year. Analysts' estimates typically exclude special items.

"This quarter we continued the strong momentum from the first half of the year. We increased segment operating earnings 40 percent, expanded operating margins in each reportable segment, reduced costs, grew volumes and improved free cash flow. As a result of our continued performance and progress against strategic initiatives, we are raising our operating earnings guidance for the year," said Ed Breen, chairman and CEO of DuPont.

It now expects full-year 2016 GAAP earnings to be about $2.71 per share, an increase of 30 percent from prior year.

The company continues to expect a benefit of $0.64 per share from the 2016 global cost savings and restructuring plan and a headwind from currency of about $0.15 per share. The company's full-year 2016 GAAP earnings include an expected charge of about $0.37 per share for transaction costs associated with the planned merger with Dow.