Industrial biosciences posted $50 million in earnings during the second quarter, a $9 million, or 15%, decrease from 2014’s second quarter totals.
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Chemical company DuPont has seen shares tumble, after it trimmed its full-year earnings forecast, lowering expectations for sales in its farm segment due to “continuing weakness in global agricultural markets”.
The company is speeding up its cost-reduction program to combat the impact of weakening sales, and in January raised its cost-reduction target by $300 million to at least $1.3 billion by 2017. Currency impacts brought down sales by 5% in the quarter.
Agricultural sales fell 11 percent to $3.22 billion amid a 6 percent drop in volume and a 5 percent currency impact. Company officials said most of that decrease came from removing results from its now-separated Chemours business.
In Performance Chemicals, sales dropped 11 percent to $1.502 billion, driven primarily by lower prices for titanium dioxide. The reduced sales were impacted by lower prices and the weakened U.S. dollar, according to DuPont.
On a GAAP basis DuPont’s first quarter EPS was $1.03 compared with $1.15 in the first quarter a year ago. DuPont noted productivity improved in the unit, currency, the divestiture of Sontara and lower demand for its products by the oil and gas industry were all factors in the decrease.
Nutrition & health recorded $103 million in sales in the quarter, a 2 percent drop from $105 million in sales during the same period past year. DuPont said it also lowered its forecast from $4 previously to account for the July 1 spin off the performance chemicals unit and a stronger dollar.
DuPont, led by CEO Ellen Kullman, gave Peltz more ammunition Tuesday when it reported second-quarter results that fell short of estimates. DuPont estimated the unit’s sales would have increased by about 8% without the currency exchanges. DuPont credited the increase improved productivity.
Kullman, meanwhile, plans to cut $1 billion of expenses this year and she intends to use a $4 billion dividend from Chemours to buy back shares over 18 months.
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The billionaire activist, who lost a high-profile proxy battle with DuPont earlier this year, is ready to renew his public attack on the slumping chemical giant, The Post has learned. Losses, adjusted for non-recurring costs, were 37 cents per share.
