Chemicals giant EI DuPont De Nemours & Co. (DD) on Thursday forecast operating earnings per share for the second quarter, below analysts' estimates, and said it now projects fiscal 2013 operating earnings per share at the low end of its prior target range.
Nicholas Fanandakis, Executive Vice President and Chief Financial Officer of DuPont said, "Unseasonably cool, wet weather across North America and Europe is impacting our Agriculture and Nutrition & Health segments' second-quarter revenues and costs. March to May 2013 has been the wettest spring in nearly 120 years across the farm belt states of Iowa, Illinois and Indiana."
At the Deutsche Bank Global Industrial and Basic Materials conference on Thursday, Wilmington, Delaware-based DuPont forecast operating earnings per share for the second quarter to be $1.27. This compares to operating earnings of $1.50 per share for the year-ago period.
On average, twenty one analysts polled by Thomson Reuters expect the company to earn $1.36 per share for the quarter. Analysts' estimates typically exclude one-time items.
DuPont now sees operating earnings per share for the first half of the year to be about 10 percent below last year, compared to its prior outlook for a decrease of 7 to 9 percent.
For fiscal 2013, DuPont now projects operating earnings per share at the low end of its prior guidance range of $3.85 to $4.05 per share, based on anticipated improvement in global industrial market demand. This compares to operating earnings of $3.77 per share for the prior year. Analysts expect the company to report earnings per share of $3.90 for the full-year.
The company will announce its second-quarter results on July 23.
DuPont said it aims to generate superior shareholder returns and enhance the value of the company by aggressively advancing its three strategic priorities.
The company plans to boost its presence in high-value, science-driven segments of the agriculture-to-food value chains, strengthen its position as a provider of differentiated, high-value advanced materials, and develop industrial biotechnology capabilities that create transformational, new bio-based businesses.
"We are leveraging our science capabilities across businesses and markets to address some of the world's most pressing challenges. Science is the growth engine of DuPont. Our integrated science gives us an advantage unlike any other company to deliver value to customers and shareholders," Fanandakis said.
In April, DuPont reported a profit for the first quarter that more than doubled from the prior year, led by strong performance in its agriculture segment.
The company's net income for the quarter was $3.35 billion or $3.58 per share, up from $1.49 billion or $1.58 per share in the year-ago period. Net sales increased to $10.41 billion from $10.18 billion in the previous-year quarter, reflecting volume growth.
In Thursday's regular session, DD is trading at $53.99, down $0.24 or 0.45 percent on a volume of 904,163 shares.
by RTT Staff Writer
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