DuPont Co. on Monday, October 5, 2015 announced that Kullman will step down on October 16.
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DuPont eventually spun off its performance-chemicals unit earlier this summer into a separate business named The Chemours Co.
Under Kullman, DuPont fended off an attempt by activist investor Nelson Peltz’s Trian Fund Management to land board seats earlier this year. “With a strong foundation in place, now is the right time for a new leader to continue to drive the pace of change to capitalize fully on the opportunity ahead”, said Kullman.
In a release, DuPont said, “The revised outlook primarily reflects continued strengthening of the US dollar versus currencies in emerging markets, particularly the Brazilian Real; and a further weakening of agricultural markets, primarily in Brazil”. Kullman acknowledged as recently as last week that the slide in its share price was “a concern”.
Kullman has been with DuPont since 1988.
DuPont shares have declined 27 percent in the year to date.
On Monday, DuPont also slashed its full-year earnings forecast to about US$2.75 per share from the prior US$3.10 estimate. “His selection probably does not indicate a dramatic shift in corporate strategy”. DuPont board member Edward Breen will serve as interim chief executive while an executive recruitment firm searches for a successor to Kuhlman, a 27-year DuPont veteran. It’s targeting $1.6 billion in cost-savings on a run-rate basis by the end of 2017.
In after-hours trading the stock rallied 6 percent, or $3.06, to $54.34.
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Breen was Tyco CEO from 2002 to 2012, cleaning up the mess left behind by previous CEO Dennis Kozlowski, who left in 2002 and was subsequently convicted and imprisoned for receiving unauthorized bonuses and other financial crimes. Breen is now a member of the company’s board of directors.
