Wed, Oct. 28, 3:58 PM
- DuPont (DD +1.6%) moves higher following reports that Nelson Peltz secretly met with the board and interim CEO Edward Breen to push his plans for major structural reforms at the company.
- The meeting last week is said to be a first between the activist shareholder and the company since CEO Ellen Kullman’s resignation early this month; some analysts have speculated that Peltz may have an easier time selling Breen on his changes, since the interim CEO has a background in corporate restructurings while CEO of Tyco.
- Deutsche Bank raises its stock price target to $70 from $63, seeing Breen as well positioned to become permanent CEO in the next few months, which augurs well for a break-up of DuPont, and Breen says he has had discussions with CEOs of other ag companies regarding consolidation in the industry.
Tue, Oct. 27, 2:42 PM
- DuPont (DD +2.7%) pushes higher after interim CEO Edward Breen said in this morning's earnings conference call that the company was considering a sale of its agricultural unit.
- DuPont will take a "fresh look" at its cost structure and capital allocation strategy, Breen said, even as cost cuts made up $0.10 of Q3 operating earnings of $0.13; DuPont could raise its cost-cutting target by 10%-20% once it undertakes a more thorough operational review, says SunTrust analyst James Sheehan.
- DuPont has been touted as a potential buyer of Dow Chemical's farm unit, but some have questioned if the company is in a position to do so.
Tue, Oct. 6, 10:15 AM
- DuPont (DD +12%) bursts out of the gate to lead all Dow advancers in early trading following yesterday's news after the close that CEO Ellen Kullman would retire amid a reduced outlook for the year and an accelerated plan to cut expenses.
- The board probably pushed Kullman out because of the failure to meet predicted profit, says Suntrust analyst Jim Sheehan, adding "They clearly needed a sacrificial lamb. You wouldn’t have a CEO step aside with only a couple weeks notice without a successor in place unless it was unplanned."
- Deutsche Bank analyst David Begleiter thinks a breakup of DuPont is highly likely following Kullman's departure, noting that interim DuPont CEO Ed Breen as CEO of Tyco broke up the company twice.
- Begleiter believes a separation into an agriculture, nutrition and biosciences company and a chemical and materials company would unlock substantial shareholder value, and reiterates his Buying rating with a sum-of-the-parts analysis yielding a value of $67/share vs. yesterday's closing share price of ~$51.
Tue, Oct. 6, 9:15 AM
Mon, Oct. 5, 5:41 PM
Mon, Oct. 5, 4:24 PM
- Du Pont (NYSE:DD) is up 4.3% after hours as it says CEO Ellen Kullman is retiring from the company, effective Oct. 16, and it updated guidance with better cost savings than expected.
- Current director Edward Breen will take on the role of interim chairman and CEO while the company seeks a full-time replacement.
- The company says it now sees operating EPS for the full-year of $2.75, down from a prior $3.10, chiefly due to foreign exchange and the continuing strength of the dollar. Brazil's weaker agricultural market (and sinking currency) also play a part in the new outlook.
- It's accelerating an operational redesign by a year and is expecting to save $1.3B on a run rate basis by the end of 2016. Du Pont is also targeting about $1.6B in savings on a run rate basis by the end of 2017.
- The company will discuss the moves in a conference call at 5 p.m. ET.
- Shares had moved up 4.1% during market hours.
Fri, Oct. 2, 4:13 PM
- Du Pont (DD +1.9%) could face punitive damages in a trial involving an Ohio woman who says she got kidney cancer from contaminated water.
- A judge ruled against a motion by the company to find that punitive damages might apply. The case may help settle thousands of similar suits related to the company's dumping of the chemical C8 -- used in making Teflon -- into area drinking water.
- Plaintiff Clara Bartlett says that Du Pont knew there were risks from the chemical that the company didn't share with the public. Du Pont's chief scientist testified Thursday that he was tracking potential problems with C8 but didn't know until 2012 that it could cause several diseases.
Wed, Sep. 30, 11:59 AM
- Federal investigators have found broad safety problems at DuPont's (DD +1.5%) La Porte, Tex., plant where four workers died last year from exposure to a toxic gas, according to a report from the U.S. Chemical Safety Board.
- The unit where the workers died did not having adequate ventilation or air monitoring to ensure worker safety, and procedures were not followed that would have restricted worker access to areas where ventilation fans were not working, according to the report.
- A review by DuPont of systems at the plant that control overpressure in equipment is in the fourth year of a five-year assessment, but is only 35% complete, according to the board.
Mon, Sep. 28, 12:58 PM
- Huntsman (HUN -23.8%) plunges by nearly 25% following an earnings warning from the company after Friday's market close that lower titanium dioxide pricing, currency headwinds, soft demand in Asia, lower oil prices and a delay in benefits from lower raw material prices will negatively impact Q3 earnings.
- HUN says it also sees lower margins for methyl tertiary butyl ether due to lower oil prices and forecast continued lower MDI urethane component product margins in the Asia Pacific region.
- CEO Peter Huntsman says he is "optimistic about the future" despite the short-term headwinds, and that the company anticipates Q4 adjusted EBITDA similar to Q3 at ~$300M, similar to last year's level; HUN also remains committed to a separation of the pigments and additives business by year-end 2016 or sooner.
- Other chemical companies also are lower: DOW -2.7%, DD -1.7%, EMN -4%, ASH -4.3%, CC -7.6%, KRO -1%, SHLM -3.1%, LYB -4.1%, SSL -4%, OTCQX:BASFY -1.3%.
Mon, Sep. 14, 9:59 AM
- DuPont (DD -1%) today will face the first trial in litigation from residents near one of its plants in West Virginia who have accused it of sickening them with a toxic chemical that leaked into their drinking water.
- While DuPont is the named defendant, the recent performance chemicals spinoff Chemours (CC -2.4%) will cover Dupont's potential liability.
- Plaintiffs say DuPont used perfluorooctanoic acid, known as C-8, at the company's Washington Works plant in Parkersburg, W. Va., since the 1950s and continued even after learning it was potentially toxic and that it had been discovered in nearby drinking water supplies in Ohio and West Virginia.
Fri, Aug. 14, 8:58 AM
- DuPont (NYSE:DD) +1.8% premarket after J.P. Morgan upgrades shares to Overweight from Neutral with a $60 price target, up from $58, citing a positive risk/reward profile after five years of underperforming the market despite lingering negative conditions in the chemicals industry.
- "High-quality agricultural companies have received high-teens EBITDA bids, which we read as a rough marker of intrinsic value," JPM says, adding that DuPont's plans to repurchase shares worth $4B over the next 18 months may offer "stability or strength to the share price."
- The firm says the referendum on DuPont's performance sought by activist investor Nelson Peltz that was settled by a vote of confidence in management is a positive for the stock, and "management is now in a position to demonstrate that the confidence of its shareholder base was well-placed."
Thu, Jul. 2, 3:29 PM
- DuPont (DD -2.4%) drops to a new 52-week low after completing the spinoff of its Chemours performance chemicals business, which has been criticized by many analysts.
- RBC maintains its Sector Perform rating but cuts its price target to $64 from $69, saying DD still faces significant forex and other headwinds in many of its remaining businesses; the firm believes DD is fully valued at 9.7x its new post-spin estimated 2016 EBITDA.
- Wells Fargo has a somewhat more favorable view on the transaction, believing it enables DD to dampen earnings cyclicality in its quest to be a science company
Wed, Jun. 24, 12:41 PM
- DuPont (DD -2.6%) is the Dow's biggest percentage loser after J.P. Morgan provided a downbeat assessment of Chemours, the performance chemicals division DuPont is spinning off.
- The firm starts coverage of Chemours with an Underweight rating, believing the spinoff is a "fully-valued security," and that the company will decide to cut its dividend.
- JPM expects Chemours' cash flow generation to be negligible for 2015, so the company would have to borrow to pay the initial quarterly dividend of $100M and is not likely to generate enough capital to sustain such a dividend payment.
- Credit Suisse agrees, adding that Chemours is saddled with large legal liabilities, mainly from production of fluoropolymer products such as Teflon, which faces suits and environmental fines of $295M with the potential to more than double.
Wed, May 13, 2:15 PM
- DuPont (DD -6%) remains sharply lower after Nelson Peltz's Trian Fund Management lost its proxy fight and failed to get any of its nominees elected to the company's board, and Citigroup analysts agree that it's not good news.
- Although Trian lost, Citi thinks DuPont will be under greater shareholder scrutiny going forward even though the result was a big win for CEO Ellen Kullman and management, with cost reductions and share repurchases taking the primary focus in the near-term.
- DuPont also "may have to play more offense" in agriculture after spending the last several months playing defense in the proxy battle; the firm says it sees logic in combining DD's and Dow Chemical's (NYSE:DOW) ag businesses.
- Trian may not be patient and may exit its position over time, offering a potential overhang on DD shares, Citi says.
Wed, May 13, 9:15 AM
Wed, May 13, 9:07 AM
- It appears that Trian nominees were not elected to the DuPont (NYSE:DD) Board at today's annual meeting of stockholders.
- "The vote was close. We greatly appreciate the support we received from the vast majority of institutional stockholders...as well as the leading proxy advisory firms, who all recognize the need for change at DuPont," Trian said in a statement.
- DD -6.2% premarket
E I du Pont de Nemours & Company is a science and engineering company that offers products and patents applications for agriculture, nutrition, electronics and communications, safety and protection, home and construction, transportation and apparel.
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