DuPont cuts profit outlook on weakening demand
US-based chemicals major DuPont on Friday lowered its 2011 full-year earnings outlook to a range of $3.87-$3.95 earnings per share (EPS), excluding significant items – down from a forecast last month of $3.97-$4.05/share.
"We are seeing slower growth in certain segments during the fourth quarter, driven by global economic uncertainty. This uncertainty is contributing to ongoing conservative cash management in some supply chains," said DuPont CEO Ellen Kullman.
The projected earnings still represent an 18% to 20% increase from 2010.
The earnings revision reflects destocking across polymers and certain industrial supply chains that has accelerated during the fourth quarter, according to the company.
Consumer electronics demand has further softened, and housing and construction markets remain weak, DuPont said, while other markets remain as expected.
Markets for DuPont's agriculture and food businesses continue to be strong, including solid volume growth during the current Latin America summer season.
"We continue to drive our aggressive productivity initiatives, and, with customer inventories at very low levels, we are staying close to our customers to assure that we are ready to respond when demand returns," Kullman said.
DuPont expects earnings growth in 2012 and will provide guidance for the full year during its annual investor day in Wilmington, Del., on Dec. 12-13, it said.
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