WILMINGTON (dpa-AFX) - Chemical company EI DuPont De Nemours & Co. (DD) Tuesday reported higher profit in its second quarter, while operating earnings declined and were in line with market estimates due to weak agriculture earnings. Looking ahead, the company expects a strong second half and backed its fiscal 2014 earnings growth forecast.
In pre-market activity, DuPont shares were gaining $2.78 or 4.24 percent, and trading at $68.32.
For the second quarter, net income attributable to the company amounted to $1.07 billion or $1.15 per share, higher than last year's $1.03 billion or $1.11 per share.
Quarterly operating earnings, which excluded certain items, totaled $1.085 billion or $1.17 per share, 9 percent lower than $1.19 billion or $1.28 per share a year ago. On average, 19 analysts polled by Thomson Reuters expected earnings per share of $1.17 for the quarter. Analysts' estimates typically exclude one-time items.
The company said its operating earnings were in-line with its expectations announced in late June. On June 26, the company had provided weak earnings outlook for the quarter and slashed expectations for 2014, citing weakness at its agriculture segment and, to a lesser extent, performance chemicals business.
The Wilmington, Delaware-based company said its total segment operating earnings declined 5 percent to $1.77 billion, mainly as agriculture earnings were hurt by lower corn seed volumes, lower North America herbicide volumes and higher seed inventory write-downs.
DuPont Chair and CEO Ellen Kullman said, 'While lower Agriculture earnings impacted our results this quarter, we continue to see strong science-driven growth in this segment over the long term. We are steadily advancing DuPont's strategy to build and strengthen world-leading positions in agriculture and nutrition, bio-based industrials and advanced materials.'
Meanwhile, higher results were delivered by Industrial Biosciences, Nutrition & Health and Safety & Protection segments.
Net sales dropped 1 percent to $9.71 billion from the previous year's $9.84 billion, reflecting portfolio changes, while price, volume and currency were in line last year. Analysts estimated revenues of $9.79 billion for the quarter.
Net sales in U.S. & Canada declined 3 percent to $4.60 billion, and Latin America fell 4 percent. Sales in Europe, Middle East & Africa or EMEA region improved 2 percent, while Asia Pacific remained flat.
Looking ahead, DuPont expects a strong second half in 2014 with operating earnings per share of $1.25 - $1.35, about 40 percent of which is expected in the third quarter.
Further, the company confirmed its full-year 2014 operating earnings outlook of $4.00 - $4.10 per share, an increase of 3 to 6 percent from $3.88 per share earned in 2013, based on expected growth in global industrial market demand. Twenty-one analysts project annual earnings of $4.03 per share.
DuPont added that its strategic redesign initiative announced on June 26th to reset its operating model is under way across all businesses and support functions.
Also, the Performance Chemicals separation remains on track for mid-2015.
In addition, the company announced a 4 percent increase in its third quarter dividend, its third increase in the past 27 months.
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