By Chelsey Dulaney
DuPont Co. said earnings jumped 52% in its third quarter on
lower expenses, despite ongoing softness in the chemical giant's
agriculture segment.
Still, the company warned of sluggish economic growth, currency
impacts and ongoing agricultural headwinds for its current
quarter.
DuPont's corporate structure and business portfolio recently
came under scathing attack from activist investment firm Trian Fund
Management LP, which argued that the company's share value could
effectively double if it split itself into two companies--one
focused on agriculture and nutrition, the other on industrial
materials.
Meanwhile, DuPont is already working on plans to cut $1 billion
in costs by 2020 and to shift away from lower-growth commodity
businesses toward higher-growth areas, such as nutritional products
and agriculture. As part of the effort, DuPont last year said it
plans to spin off its performance chemicals segment--best known for
materials in nonstick frying pans and house paints.
DuPont said Tuesday that the separation of the unit remains on
track for mid-2015.
For the quarter ended Sept. 30, volume grew across nearly all of
DuPont's segments, with the only decline coming in its agricultural
business, where higher crop protection volume was more than offset
by lower seed volume.
Sales in the agricultural segment fell 4% to $1.56 billion,
while the operating loss in the segment narrowed to $55
million.
Sales in DuPont's nutrition and health segment grew 4%, while
sales in the performance chemicals division fell 8%.
Overall, DuPont reported a profit of $433 million, or 47 cents a
share, up from $285 million, or 30 cents a share, a year earlier.
Excluding certain items, operating earnings increased to 54 cents a
share from 45 cents a share. Net sales fell 2.9% to $7.51 billion
due to portfolio changes, while total revenue edged up slightly to
$7.87 billion.
Analysts polled by Thomson Reuters had expected a profit of 53
cents a share and revenue of $7.95 billion.
Total expenses fell 6.5% to $7.08 billion in the quarter
The company reiterated its earnings outlook for the year.
Write to Chelsey Dulaney at Chelsey.Dulaney@wsj.com
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