DuPont reports EPS in-line with conssens & pre-announcement, revs in-line; guides Q3 EPS below consensus; reaffirms FY14 EPS guidance; raises quarterly div 4%
Reports Q2 (Jun) earnings of $1.17 per share (co pre-announced EPS of lower than $1.28 on Jun 26), excluding non-recurring items, in-line with the Capital IQ Consensus Estimate of $1.17; net revenues fell 1.4% year/year to $9.71 bln vs the $9.75 bln consensus.
- Co issues downside guidance for Q3, sees EPS of 40% of 1.25-1.35 or ~$0.50-0.54 vs. $0.60 Capital IQ Consensus Estimate.
- Co reaffirms guidance for FY14, sees EPS of $4.00-4.10 vs. $4.02 Capital IQ Consensus Estimate.
- Agriculture -- Operating earnings of $836 mln declined $105 mln, or 11 percent, on lower corn seed volumes, lower North America herbicide volumes and higher seed inventory write-downs. This was partially offset by higher seed prices, higher insecticide volumes, higher soybean volumes and lower seed input costs.
- Performance Materials -- Operating earnings of $303 mln decreased $29 mln, or 9 percent. Gains from strong Performance Polymers volumes into global automotive markets were offset by a scheduled maintenance shutdown at the company's Orange, Texas ethylene unit. Absent that shutdown, segment operating earnings would have increased.
- The Performance Chemicals separation remains on track for mid-2015.
- The company also announced a 4% increase in its 3Q 2014 dividend, its third increase in the past 27 months.
- Guidance Details: The company reaffirms its recently updated outlook for full-year 2014 operating earnings of $4.00-$4.10 per share, an increase of 3 to 6 percent from $3.88 per share earned in 2013, based on expected growth in global industrial market demand. The company anticipates a strong second half in 2014 with operating earnings per share of $1.25 - $1.35, about 40 percent of which is expected in the third quarter.