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
Wed, May 13, 8:40 AM
- DuPont (NYSE:DD) was seen winning its proxy fight against activist investor Nelson Peltz, sources told CNBC, although the vote is said to be very close.
- The annual shareholder meeting at DuPont's Chestnut Run headquarters has begun.
- Previously: DuPont-Trian battle comes to a head (May. 13 2015)
- DD -3.1% premarket
Mon, Apr. 27, 10:45 AM
- Shareholder proxy firm ISS recommends activist investor Nelson Peltz for a spot on DuPont's (DD +3.1%) board, plus one other nominee put forward by Peltz's Trian Fund Management.
- "This is not a broken company - but there is compelling evidence that the dissidents are onto something in their critique," ISS says following last week's release of disappointing Q1 results.
- DuPont and Trian have tried to make offers to settle the increasingly bitter proxy fight over the company's future, but both sides have been steadfast on whether Peltz deserves a seat on the board.
Tue, Apr. 21, 3:13 PM
- DuPont's (DD -2.7%) disappointing Q1 revenue and reduced 2015 earnings outlook is expected to provide fresh ammunition to Nelson Peltz in his campaign to split up the company.
- Peltz's Trian Fund will point to the lower outlook - DuPont now sees FY 2015 EPS at the low end of $4.00-$4.20 vs. $4.06 analyst consensus estimate - as further evidence that the company fails to meet its financial targets, SunTrust's James Sheehan says, adding that the profit warning would "likely intensify the debate."
- DuPont, which gets ~60% of its sales from outside the U.S., blames a stronger dollar for the 9% drop in Q1 sales and reduced profit outlook, but says cost-cutting efforts are helping the bottom-line.
- Leading shareholder proxy firm ISS is meeting with Peltz and DuPont on Wednesday and is expected to make its recommendation by the end of the month; the battle will come to a head on May 13, when DuPont holds its annual shareholder meeting.
Tue, Apr. 21, 7:25 AM
- Net income of $1.03B vs. $1.44B in the same quarter a year ago. Excluding pension costs and other items, operating earnings were $1.34 a share, down from $1.58 per share, the prior year.
- Cost reductions increased earnings by $0.10 per share, however, helping to make up for a 10% sales drop at DuPont's (NYSE:DD) agriculture unit, the company's largest business.
- Net sales fell 9% to $9.17B, primarily due to a decline in volumes and negative currency impacts.
- DuPont says it's now on track to spin off its performance chemicals unit the middle of this year and expects to report full-year operating earnings at the low end of its $4.00-$4.20 per share range (below analyst projections of $4.46).
- The results also come just weeks ahead of a shareholder vote on adding nominees from Trian Fund Management, headed by Nelson Peltz, who has argued the company's share value could effectively double if it split itself into three.
- DD -1.6% premarket
- Q1 results
Mon, Mar. 23, 12:35 PM
- Origin Agritech (SEED +24.5%) soars in a move attributed to a WSJ article discussing China's desire to develop a local seed company, potentially through a renewed bid for SEED, which controls the rights to China's first genetically modified corn.
- SEED last year rejected a $60B takeover bid from China's state-backed Hunan Xindaxin but its top executives believe another attempt is coming, as China looks to find a way to can keep foreign giants such as Monsanto (NYSE:MON), DuPont (NYSE:DD) and Syngenta (NYSE:SYT) at bay while significantly increasing the country’s spending on R&D.
- China is the world’s second largest seed market but limits foreign producers to minority stakes in joint ventures, and its domestic seed makers are too small and scattered for the government to corral in pursuit of controlling the biotechnology that underpins the competitive power of global seed manufacturers.
Fri, Mar. 20, 7:35 AM
- JinkoSolar (NYSE:JKS) has signed a strategic collaboration agreement with DuPont (NYSE:DD) to further the growth and adoption of efficient and reliable solar generated electricity.
- Areas of potential collaboration: technical development, improvements in solar cells and panels and co-marketing efforts.
- JKS +2.1% premarket
Mon, Mar. 16, 2:38 PM
- DuPont (DD -4.1%) slides to its lows of the day following a two-notch downgrade to Underperform from Buy at BofA Merrill.
- DuPont is contending with several challenges, including pricing pressures as some farmers buy less expensive seeds, a likely decline in total U.S. corn acreage, and elevated inventories of crop protection chemicals, BofA analyst Kevin McCarthy believes.
- In chemicals, ethylene margins are likely to fall this year, while TiO2 prices continue to drop, all while the strength of the U.S. dollar is likely to weigh on the company's overall results, the analyst says.
- McCarthy says the biggest risk to its cautious posture is the ongoing engagement of Trian, which could lead to acceleration of cost cuts and possibly further reshape the portfolio or lead to a break-up of DuPont.
- The firm also cuts its EPS estimates for 2015 and 2016 to a respective $4 and $4.30, both falling below the consensus estimate of $4.09 for 2015 and $4.56 for 2016.
Mon, Mar. 16, 7:59 AM
Tue, Jan. 27, 7:25 AM
- Net income of $683M vs. $185M in the same quarter a year ago. Operating earnings per share of $0.71 vs. $0.59 per share last year.
- Net sales fell 5% to $7.38B, primarily due to portfolio changes and negative currency impacts.
- DuPont (NYSE:DD) says it will still reach its goal of $1B in cost reductions by 2015 and would now aim for $1.3B in overall savings by 2017.
- The company also expects to buy back up to $4B in shares using the dividend from the spinoff of its performance chemicals business.
- DuPont gave a disappointing outlook for 2015 due to a significant hit from the strengthening dollar, and expects to post per-share earnings of $4.00-$4.20 for the year, below analyst projections of $4.46.
- The forecast may add to the pressure from activist investor Trian Fund Management, headed by Nelson Peltz, who has argued the company’s share value could effectively double if it split itself into three.
- DD -1.5% premarket
- Q4 results
Mon, Jan. 12, 2:31 PM
- DuPont (DD +1.5%) agrees to sell its Dupont Theatre and related assets, months after the company was criticized by Trian Fund for retaining its hospitality businesses; financial terms are not disclosed.
- DuPont has long operated several hospitality institutions at its headquarters in Wilmington, Del., including the 12-story Hotel du Pont and the DuPont Country Club.
- In September, Trian highlighted the hospitality businesses as symbolizing waste at DuPont, and corporate governance experts said owning such assets is rare today among big U.S. publicly traded companies.
DD vs. ETF Alternatives
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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