By RTT News, October 22, 2013, 07:09:00 AM EDT
(RTTNews.com) - Chemicals giant EI DuPont De Nemours & Co. ( DD ), commonly known as DuPont, Tuesday reported a surge in third-quarter profit, reflecting improvements in most of its segments. The company backed its full year earnings view.
DuPont said Performance Materials, Electronics & Communications, Safety & Protection and Industrial Biosciences had double-digit earnings growth reflecting higher volumes and improved margins.
DuPont CEO Ellen Kullman said, "We executed well against our plans. Third quarter sales volumes and operating earnings were stronger across most businesses compared to a soft quarter last year. While we expect overall sequential growth in industrial market demand will remain subdued, fourth quarter operating earnings will be up substantially from last year."
Net income attributable to DuPont surged to $285 million from $5 million in the previous year. Earnings per share were $0.30 compared to breakeven last year. Earnings from continuing operations were $0.28 per share compared to a loss of $0.05 per share for the third quarter of 2012.
Excluding items, operating earnings were $426 million or $0.45 per share while it totaled $405 million or $0.43 per share in the prior year. On average, 20 analysts polled by Thomson Reuters expected earnings of $0.41 per share for the quarter. Analysts' estimates typically exclude special items.
Net sales increased to $7.735 billion from $7.390 billion in the previous year. Wall Street expected revenues of $7.78 billion.
Volume was up 9 percent compared to a weak prior year. Sales also reflect 3 percent lower local prices and a 1 percent negative currency impact.
Agriculture sales climbed 15 percent to $1.633 billion, driven by increased insecticide volumes and higher seed prices in Latin America. The sales growth and the benefit of increased ownership in Pannar Seed (Pty) Ltd. reduced the segment's third quarter seasonal loss to $62 million from last year's $70 million.
Sales in the Performance Materials business rose 3 percent to $1.663 billion and operating earnings climbed 43 percent.
Electronics & Communications sales advanced 5 percent to $638 million and operating earnings surged 67 percent, helped by higher sales volume, mainly in photovoltaic markets reflecting demand improvement and share gains.
Sales in the Industrial Biosciences segment was 4 percent higher at $305 million and profit climbed 13 percent on higher sales of Sorona polymer for carpeting and apparel and lower costs.
Sales slid 1 percent each at Performance Chemicals and Nutrition & Health to $1.720 billion and $868 million, respectively.
Performance Chemicals reported a 38 percent decline in earnings as price declines for titanium dioxide, refrigerants and fluoropolymers, along with higher raw material inventory costs, principally ore costs, more than offset volume increases.
Nutrition & Health reported higher profit owing to productivity improvements.
The company continues to expect full-year operating earnings of about $3.85 per share. Analysts expect full year earnings of $3.80 per share.
Kullman added, ''For the full year we are on track to deliver modest earnings growth, despite the significant decline in Performance Chemicals' results.''
DD closed at $59.46 on Monday.
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