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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
  • Source: Press Release
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Comments (3)
  • funfun
    , contributor
    Comments (3221) | 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
  • funfun
    , contributor
    Comments (3221) | 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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