DuPont Boosts Profit Forecast Amid Rise in Revenue -- Update

By Joshua Jamerson 

Chemical giant DuPont Co., looking to wrap up its merger with Dow Chemical Co., boosted its profit outlook for the year as it reported higher sales from its agriculture and performance materials segments amid lower costs in the latest period.

DuPont is approaching the one year anniversary of its December 2015 announcement that it would merge with rival Dow Chemical, as antitrust reviews have raised questions about what businesses Dow and DuPont may have to shed to get the green light in Brussels, Washington and other regulatory jurisdictions.

"We continue to work constructively with regulators in key jurisdictions to close the merger as soon as possible," Ed Breen, DuPont's chief executive, said in prepared remarks.

The European Union's antitrust authority earlier this month set a new date of February 2017 to complete its review of the merger.

"In the event that regulators in those jurisdictions use their full allotted time, closing would be expected to occur in the first quarter of 2017," Mr. Breen said.

The company said Tuesday it now sees adjusted earnings coming in at $3.25 a share, compared with its prior guidance range of $3.15 to $3.20.

DuPont's agricultural unit is among the biggest sellers of corn and soybean seeds to U.S. farmers. In the September quarter, DuPont's agriculture sales rose 2% to $1.12 billion. Cost cuts, higher volumes and a $28 million benefit from currency helped offset lower local prices and higher product costs.

DuPont, along with rival seed developers like Monsanto Co. and farm equipment makers like Deere & Co., has struggled against a three-year slide in major crop prices. But earlier this month, Monsanto also reported better-than-expected results.

In the performance materials unit, DuPont's largest segment, sales also increased 2%, to $1.33 billion. Both the agriculture and performance materials units were helped by 4% higher volume.

Over all, DuPont earned $2 million, compared with $235 million a year ago. On a per-share basis, the company broke even in the quarter, compared with a 26 cent-a-share profit in the year-prior period.

Excluding certain items, the company earned 34 cents a share, up from 13 cents a year ago. Analysts surveyed by Thomson Reuters had forecast 21 cents a share.

DuPont's sales in the quarter rose 1% to $4.92 billion. Analysts projected $4.87 billion in sales.

The company said selling, general and administrative expenses fell 2.9% in the period, as research and development costs fell 7%.

Shares, which have risen 16% in the past three months, were unchanged premarket.

Write to Joshua Jamerson at [e-mail]

(END) Dow Jones Newswires

October 25, 2016 07:19 ET (11:19 GMT)

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