DuPont raises 2010 forecast
CHEMICAL maker DuPont forecast 2010 earnings well above expectations yesterday, boosting its shares, as the rebounding global economy continued to fuel the firm’s recovery.
The third-largest US chemical maker said its second-quarter profit nearly tripled, offering a positive read on global economic health as many companies have been reporting better-than-expected quarterly profits.
“This is as good a quarter as I’ve seen DuPont report in a long time,” said Deutsche Bank analyst David Begleiter. “The fact that they’re raising guidance … and noting some signs of recovery, is evidence that there hasn’t been a marked slowdown of macroeconomic activity yet.”
DuPont said the new 2010 profit forecast reflects its confidence after the second-quarter results.
It now expects 2010 earnings of $2.90 (£1.86) to $3.05 per share, excluding one-time items, up from a previous forecast of $2.50 to $2.70 per share. Analysts expect 2010 earnings of $2.64.
Chief executive Ellen Kullman said she expects the economic recovery to be “more moderate” in the second half of 2010.
“We continue to hit our productivity and cost-control targets, and remain highly disciplined in creating operating leverage to further grow the company,” Kullman said.
Sales in emerging markets jumped 33 per cent, with Asia alone up 47 per cent. The United States and Europe, which have lagged amid the economic recovery for DuPont, saw sales increase 18 per cent and 24 per cent, respectively.
The agricultural and nutrition unit, which sells hybrid seeds under the Pioneer brand, saw sales jump 16 per cent to $3bn.