DuPont will put out third-quarter results October. 27. A central part of Trian’s campaign was that Kullman had in recent years repeatedly lowered or missed earnings forecasts. Peltz supported expanded cost cuts, including research and development projects that can’t easily be tied to profits, and urged the board to consider splitting the company into smaller units. A source close to the company said the decision to leave had been Kullman’s. Spokesmen for Trian and DuPont declined to comment on the firm’s stake. She has been with the company for more than 27 years, and will be replaced in the interim by Edward Breen, a current member of the DuPont board of directors.
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Concerning the appointment of Breen as interim Chairman and CEO, Cutler said he is well-suited to lead Dupont given his record of achievement and broad experience.
Shares of DuPont, officially known as E.I. du Pont de Nemours & Co, rose 5.6 percent to $54.17 in extended trading. One investor called it the “last straw” on Monday. Mr. Kullman dismissed the plan and accused Trian of wanting to slash R&D spending and establish a “shadow management”.
In May, Kullman defeated efforts by Peltz, the billionaire chairman of restaurant chain Wendy’s, to win board seats.
Trian, DuPont’s fifth-biggest shareholder since before May’s proxy fight, boosted its stake, co-founder Ed Garden said in an interview with CNBC Monday. He credited Ms. Kullman for leading DuPont into higher-value products and promising long-term investments.
Other shareholders applauded her departure.
Cut earnings According to the company statement, DuPont now expects operating earnings per share for the full year to be approximately $2.75, compared with the prior guidance of $3.10.
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In a statement, Kullman said, “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”. Plans related to the additional cost savings are expected to be finalized in the fourth quarter.
