DuPont Q4 Profit Surges On Strong Demand, To Buy Back $5 Bln Stock

(RTTNews) - Chemicals giant EI DuPont De Nemours & Co. (DD), commonly known as DuPont, reported Tuesday that its fourth-quarter profit more-than doubled from last year, with strong demand across all regions and business segments, mainly agriculture. Looking ahead for fiscal 2014, the company projects higher earnings and sales.

Separately, DuPont announced that its board has authorized a new $5 billion share buyback program, with $2 billion expected to occur in 2014. The remainder would be repurchased over time with no required completion date.

DuPont Chair and CEO Ellen Kullman said, "Our 2013 results and strategic actions demonstrate we are advancing our plan to build a higher growth, higher value DuPont and reinforce our decision to separate Performance Chemicals into a strong, independent company."

DuPont's fourth-quarter net income attributable to the company climbed to $185 million or $0.20 per share from last year's $92 million or $0.09 per share. The latest quarter results included income from discontinued operations of $2 million, sharply lower than last year's $89 million.

On a continuing operations basis, income was $183 million or $0.19 per share, compared to income of $4 million or zero per share last year.

Operating earnings, which excluded certain items, were $558 million or $0.59 per share, compared to last year's $193 million or $0.20 per share.

On average, 21 analysts polled by Thomson Reuters expected earnings per share of $0.55 for the quarter. Analysts' estimates typically exclude one-time items.

Segment operating earnings increased 52 percent with higher volume and operating margin improvement across most segments. Agriculture segment turned around to profit with strong insecticide sales in Latin America and earlier seed shipments.

Quarterly net sales grew 6 percent to $7.75 billion from the prior-year figure of $7.33 billion. Fifteen analysts estimated revenues of $7.78 billion.

Volume grew 9 percent reflecting increased demand across all segments and regions. The growth was partly offset by 2 percent lower local selling prices and a 1 percent negative currency impact, the company noted.

Looking ahead for fiscal 2014, DuPont expects operating earnings of $4.20 to $4.45 per share, a growth of 8 percent to 15 percent from 2013. Analysts project earnings per share of $4.31 for the year 2014.

Full-year 2014 sales are projected to increase 4 percent to about $37 billion, including about a 2 percent decline from portfolio changes. Analysts expect sales of $38.06 billion for the year.

The company said the outlook reflects an expectation for continuing improvement in global industrial production, lower agricultural input costs, and currency exchange impacts. In addition, agriculture earnings of approximately $0.09 per share that historically would have been earned in the first quarter 2014 were realized in the fourth quarter 2013 due to earlier timing of seed shipments.

DuPont shares closed Monday's trading at $60.24, up 0.45 percent. In the extended trading shares lost 0.23 percent and traded at $60.10.