Chemicals, plastics, fibers, and coatings maker E.I. du Pont de Nemours & Company ( DD ), commonly known as DuPont, on Friday reduced its 2011 full-year earnings outlook, sending its shares lower in premarket trading.
The Wilmington, DE-based company said it now expects full-year 2011 profits to range from $3.87 to $3.95 per share, down from a previous outlook of $3.97 to $4.05.
On average, Wall Street analysts had been expecting higher earnings of $4.03 per share for the year.
CEO Ellen Kullman commented, "We are seeing slower growth in certain segments during the fourth quarter, driven by global economic uncertainty. This uncertainty is contributing to ongoing conservative cash management in some supply chains." The company also noted that consumer electronics demand and housing/construction markets remain weak.
DuPont shares plummeted $2.51, or -5.6%, in premarket trading Friday.
The Bottom Line
Shares of DuPont ( DD ) have a 3.53% dividend yield, based on last night's closing stock price of $46.52. The stock has technical support in the $39-$44 price area. If the shares can firm up, we see overhead resistance around the $48-$50 price levels.
E.I. du Pont de Nemours & Company ( DD ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.3 out of 5 stars.
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