Ellen Kullman is stepping down October. 16 as chairman and chief executive of DuPont Co., the Wilmington pesticide and chemical giant, as the company warned its profits are falling amid weak farm chemical sales.
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“With the separation of Chemours completed and a strong foundation for growth in place, the board and I agree that now is the right time for a new leader to guide the company through its next stage of growth”, Ms. Kullman said.
Board member Edward Breen will become interim chair and CEO until a replacement is found.
The company is now expecting to achieve full-year operating earnings or around $2.75 per share lower than its previous guidance of $3.10 per share.
She also persevered through an an attempted board takeover by Nelson Peltz’s hedge fund Trian Management. Forward-looking statements also involve risks and uncertainties, many of which are beyond the company’s control.
Kullman, 59, is leaving as DuPont said it won’t make as much money as it expected in the current quarter, and has made plans to accelerate and expand previous cost-cutting proposals.
Shares of DuPont, formally often known as E.I. du Pont de Nemours & Co, rose 5.6 % to $54.17 in prolonged buying and selling. In July, Peltz said aid he’s not giving up on DuPont despite losing his board battle. In return, DuPont has been experiencing a reduced demand for crop protection products.
The new guidance assumes full-year currency impacts of 72¢ per share, vs. the prior expectation of approximately 60¢ per share, according to the company report.
Shares had moved up 4.1% during market hours. Mr. Breen is a director of Comcast Corporation.
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“Breen is highly qualified”, Jim Sheehan, an Atlanta-based analyst at Suntrust Robinson Humphrey, said in a telephone interview. “Over the past seven years, with the dedication of our entire team, we have transformed this great company by focusing our portfolio, streamlining the organization, and driving innovation that leverages our unique science and engineering capabilities”, Kullman said. Spokesmen for Trian and DuPont declined to comment on the firm’s stake.
