Dupont cuts outlook; down 2.5% AH


Noting lower-than-expected results from its Agriculture and, to a lesser extent. Performance Chemicals segments, Dupont (DD) expects Q2 operating earnings to be moderately below last year's $1.28 per share, and cuts its full-year 2014 outlook to $4.00-$4.10 per share.

In agriculture, it's all about corn, with lower-than-hoped seed sales and higher-than-planned seed inventory write-downs. Bean sales volumes are doing better-than-expected, but not enough to offset corn. CEO Ellen Kullman: "While 2014 is a transition year in agriculture, the revisions to the outlook we made today do not meet the expectations we set for our Agriculture segment or for the company."

Updating on the company's redesign initiative, Dupont expects to book a Q2 restructuring charge of $270M, or $0.20 per share, after-tax. The efforts are expected to lead to at least $1B of cost savings by 2019.

Shares -2.5% AH

CC at 5 ET

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Comments (3)
  • funfundvierzig
    , contributor
    Comments (4658) | Send Message
     
    "…the revisions to the outlook we made today do not meet the expectations we set for our Agriculture segment or for the company," exclaims a defensive Ms. Kullman.

     

    After all the misleading PR bombast and braggadocio for months, commercial reality sets in deep inside Fortress Wilmington. The lumbering DuPont conglomerate is falling farther behind front-running Monsanto in seed biotechnology and five other producers of ag chemicals, crop protection, whose sales exceed those of the much shrunken and shrinking DuPont…funfun..
    26 Jun 2014, 04:41 PM Reply Like
  • funfundvierzig
    , contributor
    Comments (4658) | Send Message
     
    More dramatic downward revisions for DuPont in sales and income are coming down the road, fellow investors. When Ms. Kullman dumps her chemicals via a spin-off in 2015, she will be knocking off 20% of her total yearly revenues, or $7 billion out of $36 billion, and a big chunk of cash flow which contributes to the obese overhead of this struggling conglomerate.

     

    Sadly for DD shareholders, Ms. Kullman is trying futilely to give DuPont a Monsanto-Makeover. She is a decade too late, and caught with too little scientific talent (DuPont Imprelis, tell us! We won't even mention DuPont OptimumGAP)

     

    Some "redesign initiative" indeed.

     

    …funfun..
    26 Jun 2014, 04:53 PM Reply Like
  • agaptrader
    , contributor
    Comments (66) | Send Message
     
    This stock is steady growth from 52 to 67 but has taken a long time to reach here. One of the stable stocks but if you are looking to swing play as I often do, then look else where as this moves slow and will hold your $ for a longer time.

     

    Check out more stock commentaries and day trading strategies at my website. These are personal views for discussion/education purpose only, so do read full disclosure at my site.
    26 Jun 2014, 06:51 PM Reply Like
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