Chemicals maker E.I. DuPont de Nemours & Co. (
DD ), commonly known as DuPont, on Tuesday posted
disappointing third quarter earnings results and unveiled plans to
cut about 1,500 jobs.
The Wilmington, DE-based company reported third quarter net
income of $10 million or 1 cent per share, compared with $452
million, or 48 cents per share, in the year-ago period. Excluding
special items, adjusted profit was 44 cents per share.
Revenue fell 9% from last year to $7.4 billion.
On average, Wall Street analysts expected a higher profit of 46
cents per share, on much larger revenue of $8.15 billion.
Looking ahead, DD forecast full-year 2012 earnings to range from
$3.25 to $3.30 per share.
In a separate announcement, the company released plans to
eliminate 1,500 workers within the next year and a half. DuPont
will also discontinue its Performance Coatings segment and take
other actions aimed at significantly cutting costs.
The Bottom Line
Shares of DuPont ( DD ) have a 3.46% dividend
yield, based on last night's closing stock price of $49.76. The
stock has technical support in the $46-$47 price area. If the
shares can firm up, we see overheard resistance around the $52
E.I. DuPont de Nemours & Co. ( DD ) is
not recommended at this time, holding a Dividend.com DARS™ Rating
of 3.4 out of 5 stars.
Be sure to visit our complete recommended list of the Best Dividend Stocks , as well
as a detailed explanation of our ratings system here .
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