MOSCOW (MRC) -- Chemicals and seed producer DuPont forecast higher 2016 earnings, helped by aggressive cost-cutting to offset continued pressure from a strong dollar and weakness in its farm business, said Cnbc.
The company forecast full year operating earnings of USD2.95-$3.10 per share, including an expected benefit of 64 cents per share from its cost cutting and restructuring plan.
DuPont and Dow Chemical Co are in the process of a merger that would create a company with an estimated combined market capitalization of about USD130 billion as of Dec. 11, when the deal was announced. The companies plan to then break up into three separate standalone businesses.
"Our merger process is on track," DuPont Chief Executive Edward Breen said. "We are meeting key milestones and have begun our planning to create three strong, highly focused, independent businesses in agriculture, material science and specialty products."
As MRC informed earlier, Dupont reported a quarterly profit of 27 cents per share, excluding items, that slightly beat analysts' average estimate of 26 cents. However, including restructuring and other charges of USD622 million, the company reported a quarterly net loss. Net loss attributable to the company was USD253 million, or 29 cents per share, in the fourth quarter ended Dec. 31, from USD683 million, or 74 cents per share, a year earlier. Net sales fell 9.4 percent to USD5.3 billion.
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.