DuPont Co. announced that it will eliminate 1,500 jobs after posting a smaller-than-estimated third-quarter profit
DuPont reported third-quarter 2012 earnings from continuing operations were $0.32 per share versus $0.60 per share in the prior year. Current quarter reported earnings from continuing operations were $0.05 per share versus $0.39 per share in the prior year. Total company third-quarter 2012 earnings were $0.44 per share versus $0.69 per share in the prior year. Total company reported earnings were $0.01 per share versus $0.48 per share in the prior year.
The company's Performance Coatings business, now pending divestiture, has been reclassified and reported as discontinued operations for all periods presented.
Third-quarter sales from continuing operations were $7.4 billion or 9% below last year, primarily reflecting volume declines in Electronics and Communications and Performance Chemicals, particularly in Asia Pacific.
The company has commenced a restructuring plan to increase productivity, enhance competitiveness and accelerate growth. The plan will deliver pre-tax cost savings of approximately $450 million by eliminating corporate costs supporting Performance Coatings and taking additional cost-cutting actions to improve competitiveness. The restructuring plan includes eliminating approximately 1,500 positions globally in the next 12-18 months. In addition, the company remains on track to achieve its full-year 2012 productivity targets for both fixed costs and working capital.
DuPont expects its full-year 2012 earnings from continuing operations to be in a range of $3.25 to $3.30 per share. Prior-year earnings were $3.55 per share on a comparable basis.
"Today, we are taking additional actions to improve competitiveness and accelerate market- driven innovation and growth by fine-tuning the organization, eliminating costs and expanding beyond our everyday focus on productivity," said DuPont chair and CEO Ellen Kullman. "We continue to execute well in many parts of the company, and certain segments are outperforming despite market volatility. Weaker than expected demand in titanium dioxide and photovoltaic markets contributed to the decline from last year's record third-quarter earnings. We are addressing these challenges now to position ourselves for improved performance."
