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.
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