DuPont Q1 Profit Falls, Operating Earnings Meet View; Backs Full-year Outlook

(RTTNews) - Chemicals giant EI DuPont De Nemours & Co. (DD), commonly known as DuPont, Thursday reported a sharp decline in the first-quarter profit, reflecting lower sales and an income from discontinued operations in the prior year. Operating earnings met analysts' expectations, while revenues missed view.

The company also reaffirmed its outlook for full-year 2014 operating earnings. According to DuPont, operating earnings growth in most segments was offset by harsh weather and shifts in Agriculture.

Adverse weather conditions reduced first quarter earnings by an estimated $0.07 per share reflecting increased operating costs and lost sales.

For the first quarter, net income attributable to the company fell to $1.44 billion or $1.54 per share from $3.35 billion or $3.58 per share in the previous year.

Earnings per share from continuing operations for the prior-year quarter was $1.47 per share. The prior-year had an income from discontinued operations after taxes totaling $1.97 billion or $2.10 per share.

Operating earnings, which excluded certain items, rose to $1.58 per share from $1.56 per share reported last year.

On average, 19 analysts polled by Thomson Reuters expected the company to earn $1.58 per share for the quarter. Analysts' estimates typically exclude special items.

Ellen Kullman, DuPont Chair and CEO said, "We achieved substantial earnings growth in most of our segments in the first quarter as we advanced our strategic and operational priorities. We delivered near record earnings per share despite the challenges of harsh weather and differences in year-on-year comparisons in our Agriculture Segment, and our key initiatives remain on track."

Net sales for the quarter declined 3 percent to $10.13 billion from $10.41 billion a year ago. Fifteen analysts estimated revenues of $10.45 billion for the quarter.

The company attributed the decline in revenue mainly to differences in timing and planted area for Agriculture sales, negative currency impact, and adverse weather conditions in North America.

Sales reflected 1 percent lower volume, 1 percent decrease in local selling prices and 1 percent negative currency impact. However, volume grew in each of DuPont's industrial related segments and operating margins increased in 6 of 7 segments compared to the year-ago quarter.

For full-year 2014, operating earnings are still expected to be $4.20 to $4.45 per share, an increase of 8 to 15 percent from $3.88 per share earned in 2013. Analysts project annual earnings per share of $4.31.

The company also expects it will earn about 70 percent of its full year operating earnings per share in the first half.

DuPont shares closed Wednesday's regular trading at $67.72, up 1.23 percent.