DuPont Q3 Profit Tops View, Revenue Misses

(RTTNews) - Chemical giant EI DuPont De Nemours & Co. (DD) Tuesday said profit for the third quarter increased from the prior year, despite a slide in revenues amid a weak farm environment and sluggish economic growth. Adjusted earnings topped Wall Street estimates, while revenues came shy of expectations.

Net income attributable to the company increased to $433 million or $0.47 per share from $285 million or $0.30 per share last year.

Operating earnings were $0.54 per share, while it totaled $0.45 per share a year ago. On average, 20 analysts polled by Thomson Reuters expected the company to report earnings of $0.53 per share for the quarter. Analysts' estimates typically exclude special items.

Net sales slipped 3 percent to $7.511 billion from last year's $7.735 billion, due to portfolio changes. Price, volume and currency were in line with last year. Analysts estimated revenues of $7.95 billion for the quarter.

Agriculture sales were 4 percent lower at $1.563 billion. Increases in insecticide and fungicide volumes were more than offset by lower corn seed and herbicide volumes and lower corn seed price.

Revenue from Electronics & Communications slid 2 percent to $623 million, amid competitive pressures impacting Solamet paste.

Performance Materials' sales dropped 3 percent to $1.552 billion, while Safety & Protection sales edged down 1 percent to $977 million.

In Performance Chemicals, sales were 8 percent lower at $1.646 billion, against the backdrop of lower prices and portfolio changes. The firm said separation of the business remains on track for mid-2015.

Industrial Biosciences and Nutrition & Health reported sales increases of 4 percent each, at $318 million, and $899 million, respectively.

While Industrial Biosciences saw increased enzyme demand, Nutrition & Health witnessed volume growth, mix enrichment, productivity actions and lower raw material costs.

Volume grew across most segments with the decline limited to Agriculture, where higher crop protection volume was more than offset by lower seed volume.

DuPont Chair and CEO Ellen Kullman said, "In the third quarter, we improved our operating margins in five of seven segments and grew operating earnings per share 20 percent, despite a weaker Ag environment and sluggish economic growth in most of the world."

For the fourth quarter, the company expects sluggish growth in the global economy, along with continuing headwinds in agriculture and from currency.

DuPont expects fourth-quarter operating earnings per share to increase by about 20 percent from last year's $0.59 per share, matching the growth rate the company achieved in the third quarter. Analysts expect earnings of $0.70 per share for the quarter.

Full-year 2014 operating earnings are expected within its previous outlook range of $4.00 to $4.10 per share. Analysts project earnings per share of $4.00 for 2014.

DD closed down 1.6 percent on Monday at $67.88.