DuPont's Earnings Report Is One Of The Ugliest We've Seen Yet

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Earnings from industrial chemical company Dupont were terrible.EPS of 44 was three cents behind expectations..

Revenue was well below expectations of $8.14 billion

Some bullet points:

  • Third-quarter sales from continuing operations were $7.4 billion or 9 per cent below last year, primarily reflecting volume declines in Electronics & Communications and Performance Chemicals, particularly in Asia Pacific.  Company sales reflect 5 per cent lower volume, 4 per cent negative currency impact and a 1 per cent net reduction from portfolio changes, which were partly offset by 1 per cent higher local prices.
  • DuPont expects its full-year 2012 earnings from continuing operations, excluding significant items, to be in a range of $3.25 to $3.30 per share.  Prior-year earnings were $3.55 per share on a comparable basis.

Plus there will be 1500 layoffs.

The company has commenced a restructuring plan to increase productivity, enhance competitiveness and accelerate growth.  The plan will deliver pre-tax cost savings of about $450 million ($300 million in 2013) by eliminating corporate costs supporting Performance Coatings and taking additional cost-cutting actions to improve competitiveness.  The restructuring plan includes eliminating about 1,500 positions globally in the next 12-18 months. 

 

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