DuPont Will Get Its Formula Right by Thomas G. Donlan
Summary: Bio-chemical giant DuPont missed analysts' $1.06/share earnings estimates last week by five cents, sending the stock down $3 to just under $50/share. DuPont (DD) said weak North American growth hurt its bottom line, while global sales grew bolstered by a falling dollar. Housing and automotive lines were among the weakest. Analysts assumed strong sales of herbicide-resistant corn seed would give the company a boost. Sales were up 12%, but further gains were held back by restricted supply, and increased corn acreage ended up reducing sales of other crops such as soybeans. Shares finished the week at $46.82, down 11%. Barron's says that despite the earnings miss, DuPont should make good on its biotech promise, and shares could soon make another run at $55. "In the meantime, it pays a 3% dividend."