DuPont Lifts Outlook, Cites Agriculture Business

By Jacob Bunge 

DuPont Co. boosted its 2016 profit target as the agriculture and chemical giant reported first-quarter earnings that topped analysts' expectations.

"Solid execution, local price and product mix gains, and higher corn area led to a strong start to the year for our [agriculture] business," said Ed Breen, DuPont's chief executive. "Our other businesses generally performed well, slightly above our expectations."

DuPont's upbeat results in its agriculture and nutrition divisions come as contraction in the U.S. farm sector and currency pressures have pressured DuPont and its competitors.

The Wilmington, Del., company said it now expects to earn $3.05 to $3.20 a share in 2016, an increase of 10 cents from its prior outlook as DuPont slashes spending ahead of its planned merger with rival Dow Chemical Co., which the companies aim to complete this year pending regulators' approvals.

Mr. Breen said DuPont is on track with plans to eliminate $730 million in annual costs this year, with corporate expenses in the first quarter down 44% versus prior-year levels, and overall operating costs falling 7%.

For the first quarter, DuPont reported earnings of $1.2 billion, or $1.39 a share, up from $1 billion, or $1.13 a share, a year ago. DuPont estimated that foreign-exchange shifts lowered its per-share earnings by 10 cents in the quarter.

Excluding certain items, the company's operating earnings fell 4% to $1.11 billion but were flat on a per-share basis at $1.26 because the company had fewer shares outstanding in the latest quarter. Analysts surveyed by Thomson Reuters had forecast operating income of $1.04 a share for the quarter ended March 31.

DuPont's sales in the quarter fell 6% to $7.4 billion, though remained ahead of the $7.19 billion projected by analysts.

DuPont released the results ahead of the planned release time scheduled for 6 a.m. ET Tuesday, after inadvertently sending a partial earnings release to some reporters while formatting it Monday evening.

Write to Jacob Bunge at [e-mail]

(END) Dow Jones Newswires

April 25, 2016 22:25 ET (02:25 GMT)

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