DuPont Swings to Loss, Posts Lower Sales --Update

By Dave Sebastian 

DuPont de Nemours Inc. posted lower sales and swung to a loss for the first quarter as the Covid-19 pandemic has led to higher demand for personal protective equipment but also disrupted supply chains.

The maker of nylon and other materials for the auto industry on Tuesday posted a net loss of $616 million, or 83 cents a share, compared with a profit of $521 million, or 69 cents a share, in the same quarter last year. The loss was largely driven by restructuring costs, a goodwill impairment charge and other expenses.

Adjusted earnings were 84 cents a share, ahead of the 73 cents a share analysts polled by FactSet had expected.

The Wilmington, Del., company said sales fell 3.6% to $5.22 billion from the year-ago period. Analysts were targeting $5.07 billion.

DuPont said sales grew in its electronics-and-imaging and nutrition-and-biosciences segments, though declines in the transportation-and-industrial, safety-and-construction and noncore segments offset gains. Excluding the effect of currency and portfolio, the company said sales fell 2%.

"Through April, we continue to see strength in personal protection, water filtration, food and beverage, electronics and probiotics," Executive Chairman and Chief Executive Ed Breen said. "Automotive, oil and gas, and select industrial end markets continue to suffer."

The company said it has stepped up production of personal protective equipment. DuPont said it increased the production of Tyvek garments by more than nine million a month, double the amount produced for any prior crisis, the company said.

DuPont said it booked merger-related amortization expense and a higher tax rate. It continues to face nylon pricing pressures. The company earlier this year said lower nylon prices will weigh on its profit this year, though it has withdrawn full-year guidance due to the pandemic's uncertainty.

The company in April said it idled several manufacturing sites that serve the auto industry after major U.S. car makers halted production. DuPont makes materials for products including solar cells, bulletproof vests, biofuels and probiotics.

Write to Dave Sebastian at [e-mail]

(END) Dow Jones Newswires

May 05, 2020 08:12 ET (12:12 GMT)

Copyright (c) 2020 Dow Jones & Company, Inc.