DuPont posted a fourth-quarter loss on Tuesday on a slump in demand, coupled with severance and restructuring-related charges. DuPont also trimmed its full-year 2009 forecast, citing lower demand for nonagriculture products and the negative impact from a strong U.S. dollar. posted a net loss of $629 million, or 70 cents a share, compared with a year-earlier profit of of $545 million, or 60 cents a share.
Excluding special items, the loss was 28 cents a share. The slump in the U.S. automotive markets has hurt DuPont badly, as it is one of the largest suppliers of paints to car makers. The company has also been stymied by the collapse in the U.S. housing market, since it supplies coatings, countertops and insulation products used in homebuilding. The freeze in the global credit markets and a recession in many developed economies have further crimped growth for DuPont and its peers. U.S. chemical makers have also suffered from a sharp slowdown in many emerging regions, which had been driving growth for them in recent quarters.
-taken from CNBC.com, see full CNBC article @ http://www.cnbc.com/id/28862367
One of the main reasons for our purchasing this stock was its agriculture business, which is doing well relative to DD's other business segments. Clearly, the decline in autos, construction, and consumer spending is taking a toll on the company. Last quarter when they posted a loss, the group still felt we should hold on to it in our portfolio, and felt that although it will take long to recover, it is still an industry leader with a strong vision. I will listen to the conference call later and we will discuss it in the group's first meeting of the semester this thursday.
No comments:
Post a Comment