DuPont 2Q profit climbs as sales jump, costs fall

[July 27, 2010]  NEW YORK (AP) -- Chemical maker DuPont Co. said Tuesday its net income nearly tripled in the second quarter as sales surged in most of its businesses, and costs decreased.

DuPont's net income rose to $1.16 billion, or $1.26 per share, from $417 million, or 46 cents per share. DuPont earned $1.17 per share excluding a gain related to a tax settlement. A year ago the company posted a charge of $340 million after announcing thousands of job cuts as results were hurt by the weak economy.

In May 2009, the company said it would eliminate 2,000 jobs. The previous fall it said it would lay off 2,500 workers and eliminate about 10,000 contractor jobs.

Analysts expected earnings of 93 cents per share, according to a survey by Thomson Reuters.

Revenue grew 26 percent to $8.62 billion from $6.86 billion, ahead of analyst estimates of $8.27 billion. The company said the global economy is recovering, and several of its businesses are doing better than they were before the economic slump.

The Wilmington, Del., company said agriculture and nutrition revenue rose 16 percent to $3 billion. Revenue from performance materials rose 45 percent to $1.6 billion, and revenue from performance chemicals rose 26 percent to $1.6 billion. Revenue from the electronics and communications business jumped 53 percent to $657 million.

Sales in all regions posted double-digit growth, with U.S. sales up 18 percent to $3.6 billion, sales in Europe, the Middle East and Africa up 24 percent to $2.1 billion, and Asia Pacific revenue rising 47 percent to $1.8 billion.

DuPont raised its profit forecasts, citing its results in the second quarter along with further sales growth, better results from safety and protection and some of its smaller businesses, and improved productivity. DuPont now expects a profit of $2.90 to $3.05 per share this year, up from $2.50 to $2.70 per share. Analysts expect $2.64 per share on average.

[Associated Press]

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