Friday, October 23, 2009

E.I du Pont De Nemour and Co.

DuPont Released third Quarter earnings on Tuesday, October 20th

Revenue declined 18% to $5.69 billion, missing estimates of $6.27 billion.
The sales drop was mostly due to 12% drop in sales and a 2% drop in prices.

Revened dropped 21% in the U.S, 27% in Europe, the middle East, and Africa.

Even with lower revenue, Dupont managed to increase net income by 11 percent year over year by cutting costs. Net income increased to 409 million, or 45 cents a share, which beat earnings by 12 cents. They decreased costs by about 700 million. In the upcoming quater, managment tends to further decrease costs by shutting plants and cutting jobs.

Full year EPS will be 1.95-2.05, which was narrows the gap from last estimates of 1.70-2.10. However, analysts had the EPS at around $1.83.

Coatings & Color Technologies and Electronic & Communication Technologies were down by single digit percentages, but but were positive. Performance Materials turned last year's $91 million pre-tax loss to a positive $230 million, however, last years loss was due to a hurricane. Finally, Safety & Protection dipped from $251 million to $93 million on lower demand and an impairment charge..

Overall, Dupont is a good company and there operations are truly unique. Going, foward, at this time we are no long holders of this position and possibly in the future we could reevaluate Dupont and determine any possible buybacks.

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