Summary: Dupont reported a substantial profit for the third-quarter, a partial recovery from the downturn caused by last year's hurricane season.
In spite of the rising cost of raw materials, the chemical company's net profits are at $485 million or 52 cents per share compared $82 million or 9 cents share for the third quarter last year which included $146 million in hurricane-related expenses. Revenue grew 7% to $6.31 billion exceeding analysts' predictions of $6.13 billion. Profit growth, new products and expanding margins are responsible for Dupont's rise. In addition, the company announced a $5 billion stock buyback program and repurchased $100 million in shares during the third quarter. CEO Charles Holliday Jr. expects higher year-over-year earnings in the fourth quarter, even after adjusting for the 2005 hurricanes.
Potentially impacted stocks and ETFs: E.I. DuPont de Nemours (DD) • Competitors: BASF AG (BF), Bayer AG (BAY), Dow Chemical (DOW)
Seeking Alpha is not affiliated with AP.