DuPont Q2 Profit Meets View, Cuts FY Forecast, Dividend

(RTTNews) - Chemicals giant EI DuPont De Nemours & Co. (DD) or DuPont Co. Tuesday said its net income for the second quarter declined from the prior year, amid lower sales and an adverse currency. Further, citing weakness in the Agriculture segment, the company lowered its profit forecast for the year, and also reduced its dividend.

Net income attributable to the company fell to $940 million from $1.07 billion reported a year ago. Earnings per share were $1.03, compared to $1.15 last year.

The latest results included charges, including $139 associated with transaction costs related to the separation of the Performance Chemicals segment.

Operating earnings per share was $1.18 for the quarter, while it totaled $1.17 per share in the prior year.

On average, 12 analysts polled by Thomson Reuters expected the company to report earnings per share of $1.18 for the quarter. Analysts' estimates typically exclude special items.

Net sales fell to $8.6 billion from $9.71 billion last year, due to negative impacts from currency, portfolio changes, volume and local price and product mix. Analysts expected revenue of $8.75 billion for the quarter.

Sales were 11 percent lower in Agriculture at $3.218 billion, amid lower volumes and negative currency impact.

Performance Materials' sales declined 14 percent to $1.365 billion, impacted by the portfolio change from the sale of Glass Laminating Solutions/Vinyls, and a negative impact from an unplanned ethylene outage.

In Performance Chemicals, sales dropped 11 percent to $1.502 billion, driven primarily by lower prices for titanium dioxide. The company recently completed the separation of this segment.

DuPont said it is reducing its expectations for the year in its Agriculture segment due to weaker demand in global crop protection markets, reduced expectations for corn area in Latin America, and lower than expected soybean volumes in North America.

The company expects operating earnings per share for 2015 to be about $3.10 per share, excluding $0.80 per share of anticipated full-year earnings from the Performance Chemicals segment. This represents a $0.10 per share reduction from the prior outlook of $4.00 per share, which included the Performance Chemicals segment. Analysts expect the company to report earnings per share of $3.54.

DuPont's board approved a third quarter dividend of $0.38 per share payable on September 11, to stockholders of record at the close of business on August 14.

Last year, the company had announced a 4 percent increase in its dividend. Dividend was $0.49 per share in the preceding first quarter.

DD fell 0.4 percent on Monday to settle at $56.73, and dropped 1.2 percent in pre-market activity.