DuPont Q2 Profit Rises, Tops View

(RTTNews) - Chemical giant EI DuPont De Nemours & Co. (DD) or DuPont reported a profit for the second-quarter that increased 8.5 percent from last year, while quarterly sales declined 0.8 percent from the previous year. Adjusted earnings per share for the quarter beats analysts' expectations.

"Our continued focus on our plan delivered strong results. Solid execution enabled volume growth of 2 percent, and we expanded operating margins across all reportable segments. Cost savings, mix enrichment from new technologies and lower product costs contributed to the margin expansion. Continued progress on our cost savings program keeps us on track to reach $1 billion on a run-rate basis by year-end," said Ed Breen, chair and CEO of DuPon

For third-quarter 2016, the company expects operating earnings per share to be 50 percent higher than the prior year.

The company now expects full-year 2016 GAAP earnings to be in the range of $2.70 to $2.75 per share and operating earnings to be in the range of $3.15 to $3.20 per share, an increase of $0.10 per share to the low-end of its previously communicated range. The estimated negative currency impact for full-year 2016 is now expected to be about $0.15 per share. Analysts expect annual earnings of $3.16 per share.

The company continues to expect a benefit of $0.64 per share from the 2016 global cost savings and restructuring plan and a headwind from a higher base tax rate in 2016 of about $0.10 per share. The company's full-year 2016 GAAP earnings includes an expected charge of about $0.45 per share for transaction costs associated with the planned merger with Dow.

Net income attributable to the company for the second-quarter rose 8.5 percent to $1.02 billion from the prior year's $940 million, with earnings per share improving to $1.16 from $1.03 in the same quarter last year.

Operating earnings for the quarter was $1.09 billion or $1.24 per share, up from $994 million or $1.09 per share in the prior year. Analysts polled by Thomson Reuters expected the company to report earnings of $1.10 per share for the quarter. Analysts' estimates typically exclude special items.

Quarterly sales declined to $7.06 billion, from last year's $7.12 billion as volume growth of 2 percent was more than offset by pressure from local price, currency and portfolio. Wall Street expected revenues of $7.01 billion.

DD closed Monday regular trading at $68.88, up $0.45 or 0.66 percent.