MOSCOW (MRC) -- Chemicals giant DuPont Co. said first-quarter profit declined from the previous year, as revenues dropped amid adverse currency and decreased volumes, as per company's press release.
The company now expects higher-than-previously estimated negative currency impact in 2015, and as a result sees full year earnings at the low end of its prior outlook.
Ellen Kullman, DuPont Chair and CEO, said, "DuPont delivered volume and margin improvements in the majority of our post-spin segments through intense focus on innovation, disciplined execution and ongoing efficiency improvements and cost reduction, even in the midst of challenging currency and market environments. We expect performance in the remainder of the year to build on this momentum, driven by new product sales and benefits from our accelerated operational redesign.
Attributable net income dropped to USD1.03 billion or USD1.13 per share from USD1.44 billion or USD1.54 per share reported in the prior year.
Including a USD0.25 per share negative currency impact, operating earnings were USD1.34 per share, while it totaled USD1.58 per share in the prior year. On average, 18 analysts polled by Thomson Reuters expected earnings of USD1.31 per share for the quarter. Analysts' estimates typically exclude special items.
Cost reductions from operational redesign contributed USD0.10 per share to operating earnings. In 2015, total cost savings are expected to increase to around USD0.40 per share. Net sales fell to USD9.172 billion from USD10.128 billion in the prior year. Analysts expected revenues of USD9.41 billion.
The company attributed the sales drop to a 6 percent impact from currency, portfolio changes of 2 percent and expected near-term industry-wide challenges in Agriculture and Performance Chemicals.
Sales declined in the Agriculture business to USD3.94 billion from USD4.39 billion. Operating earnings decreased 21 percent, as improved product mix in Pioneer, pricing actions taken in parts of Europe and Asia and productivity improvements were more than offset by adverse currency, decreased volumes from expected reduction in global corn planted area, lower insecticide demand in Latin America and timing of seed shipments.
As MRC informed earlier, DuPont Crop Protection (DuPont) announced an agreement with Mitsui & Co., Ltd. (Mitsui) for DuPont to sell its global Kocide and ManKocide copper fungicide business assets to Mitsui.
DuPont is an American chemical company that was founded in July, 1802. The company manufactures a wide range of chemical products, leading extensive innovative research in this field. The company is the inventor of many unique plastics and other materials, including neoprene, nylon, Teflon, Kevlar, Mylar, Tyvek, etc. DuPont was the developer and main producer of Freon used in the production of refrigeration equipment.
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