DuPont (DD), the global chemical and life sciences giant, is expected to release second-quarter earnings on July 21, 2009. The company’s guidance is for earnings in the range of $1.70 to $2.10 per share, with modest year over year revenue growth in the Agriculture & Nutrition segments.
In the first quarter of 2009, the company had reported EPS of $0.54, down from $1.31 in the year ago quarter. Net sales in the quarter declined 17% to $7.27 billion, driven by a 19% decline in volume. The lower sales volume principally reflected global declines in construction, motor vehicle production, and consumer spending.
DuPont has initiated a number of initiatives to respond to the globa slowdown. In the first quarter of 2009, the company increased its fixed cost reduction goal for the year from $730 million to $1 billion. The company has identified an additional $200 million in cost reduction actions, including scaling down surplus contractor positions and work schedules.
DuPont is expected to unveil further restructuring actions in the second quarter, with targeted pre-tax savings of about $70 million and positive cash flow benefit in 2009. The company aims to reduce 2009 capital expenditures from $1.6 billion to $1.4 billion, 30% below the 2008 expenditure of $2 billion. The company expects its working capital reduction projects to deliver a $1 billion improvement over 2008.
This apart, DuPont plans to downsize 2,000 positions or about 3% of its workforce, which is expected to save more than $70 million by 2009 and $225 million annually by 2010. The company will also rationalize certain assets as part of the restructuring plan by 2010.
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