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DuPont expects lower second-quarter earnings, citing cool weather

10:00 AM MDT | June 13, 2013 | Robert Westervelt

DuPont says it expects first-half operating earnings per share to be about 10% below the prior year since cool and wet weather in North America and Europe hurt agriculture and nutrition results. DuPont had previously said that it expected first-half earnings to fall 7–9%, when it reported first-quarter earnings on 23 April. DuPont’s guidance implies second-quarter earnings of $1.27/share, about 6% below current analyst consensus of $1.35/share, according to analysts at Jefferies (New York).

DuPont says that industrial demand should get better in the second half of 2013. For the full year, it expects operating earnings to be at the low end of its previous guidance range of $3.85–4.05/share “based on anticipated improvement in global industrial market demand.”

Unseasonably cool, wet weather across North America and Europe is impacting DuPont’s agriculture and nutrition and health segments’ second-quarter revenues and costs, says DuPont executive v.p. and CFO Nicholas Fanandakis. “March to May 2013 has been the wettest spring in nearly 120 years across the farm belt states of Iowa, Illinois, and Indiana,” he says.

DuPont “continues to expect an acceleration in the global industrial environment in second-half 2013,” says Laurence Alexander, analyst with Jefferies. “At the margin, however, we expect a more cautious tone as other companies, such as Airgas, are flagging persistent weakness even in their leading indicator businesses.”

DuPont will report its second-quarter financial results on 23 July.


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