Business News
DuPont Updates 2007 and 2008 Earnings Outlooks
Wednesday 09. January 2008 - DuPont (NYSE:DD) today increased its 2007 full-year earnings outlook to reflect stronger business results in the fourth quarter of 2007 and also raised its expectations for business results in 2008. DuPont will report final results for the fourth quarter and full year 2007 on January 22.
The company expects full year 2007 earnings to be at the upper end of its previously announced range of $3.15 to $3.20 a share. This excludes $0.09 per share of charges for significant items recorded in the first nine months of 2007 and a net benefit of $.02 per share the company expects to record for the fourth quarter 2007, as further described below. (Refer to the reconciliation of earnings in accordance with U.S. generally accepted accounting principles located at the end of the news release.)
“Our science-driven innovations and market differentiation enabled us to deliver fourth quarter revenues somewhat above our earlier expectations,” said Charles O. Holliday, Jr., DuPont chairman and chief executive officer. “For the full year 2007, we will deliver 11 percent or more earnings growth despite a slowing U.S. economy and higher raw material prices. Looking ahead, we are confident that our improved business mix and ongoing initiatives to lower cost and boost returns on innovation will enable us to deliver attractive growth in earnings in 2008.”
The company also increased its 2008 earnings outlook to a range of $3.35 to $3.55 per share compared to its previous estimate of $3.31 to $3.52 reported on Oct. 23, 2007.
“We expect that continued growth worldwide from our Agriculture & Nutrition business segment and growth from all of our segments in emerging markets will more than compensate for a slower U.S. economy,” Holliday said. “We will continue to deliver productivity improvements and fund targeted growth investments, while advancing our rich pipeline and delivering new, high-value products into the marketplace.”
The company also announced after-tax estimates of the following significant items it expects to record in the fourth quarter 2007:
— A charge of about $135 million to adjust the carrying value of its
investment in a 50/50 polyester films joint venture. The rapid rise
in oil-related raw materials costs, coupled with adverse changes in
market conditions, have had a negative impact on the profitability of
the venture’s operations in North America and Europe. In addition,
the company said it is taking steps to improve the value of this
business.
— A benefit of $112 million related to agreement on certain tax audit
issues which were previously reserved.
— A benefit of $46 million resulting from the reversal of certain
litigation reserves established in prior periods for an elastomers
anti-trust matter.