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DuPont provides Q4 earnings guidance, to cut 2500 jobs
06 Dec '08
5 min read
Accelerated Cost and Working Capital Productivity
DuPont is accelerating productivity programs started earlier this year to deliver $600 million fixed cost pre-tax earnings benefit and $1 billion in net working capital reduction in 2009. Specific actions include reducing 4,000 contractors by year-end 2008 with additional contractor reductions in 2009, implementing work schedule reductions at select locations, adjusting production to market conditions and redeploying more than 400 employees to productivity projects aimed at accelerating reductions of working capital and operating costs.
4th Quarter 2008 Earnings Guidance
The company expects a loss of $.20 to $.30 per share for the fourth quarter 2008, excluding an estimated $.40 per share significant item charge for the company's restructuring plan. Sharply lower sales volumes and resulting lower plant operating rates contributed to the reduced outlook. Fourth quarter sales are expected to be at least 15 percent lower than fourth quarter 2007, principally reflecting a significant decline in worldwide sales volumes. On October 22, the company provided fourth-quarter earnings guidance of $.20 to $.25 per share. The company continues to expect year-end free cash flow of about $1.3 billion.
2009 Earnings and Cash Outlook
The company expects 2009 earnings in the range of $2.25 to $2.75 per share, anticipating the current global recession will continue well into 2009. Actions to increase cash flow are expected to generate about $2.5 billion in free cash flow in 2009, about double the level anticipated in 2008.
Capital expenditures are expected to be in the range of $1.6 to $1.8 billion, compared to $2.0 billion for 2008. Growth investments will continue for high-growth, high-margin businesses including seed products and photovoltaics. Pre-tax cost savings from the restructuring plan and productivity projects are expected to be about $730 million in 2009. DuPont anticipates a $.40 to $.50 per share increase in pension expense. While favorable conditions in global agriculture markets are expected in 2009, the company's revenue growth in 2009 will be limited by expected lower demand for non-agriculture related products and the impact of currency exchange rates.
“DuPont has market-leading global businesses, solid financial fundamentals, and strong growth opportunities,” Holliday said. “We are aggressively managing every facet within our control to maximize cash and assure we are positioned in the long term to take advantage of above-trend growth opportunities in key markets, especially where our science -based products position us among the market leaders.”
For more detail click here.
DuPont is accelerating productivity programs started earlier this year to deliver $600 million fixed cost pre-tax earnings benefit and $1 billion in net working capital reduction in 2009. Specific actions include reducing 4,000 contractors by year-end 2008 with additional contractor reductions in 2009, implementing work schedule reductions at select locations, adjusting production to market conditions and redeploying more than 400 employees to productivity projects aimed at accelerating reductions of working capital and operating costs.
4th Quarter 2008 Earnings Guidance
The company expects a loss of $.20 to $.30 per share for the fourth quarter 2008, excluding an estimated $.40 per share significant item charge for the company's restructuring plan. Sharply lower sales volumes and resulting lower plant operating rates contributed to the reduced outlook. Fourth quarter sales are expected to be at least 15 percent lower than fourth quarter 2007, principally reflecting a significant decline in worldwide sales volumes. On October 22, the company provided fourth-quarter earnings guidance of $.20 to $.25 per share. The company continues to expect year-end free cash flow of about $1.3 billion.
2009 Earnings and Cash Outlook
The company expects 2009 earnings in the range of $2.25 to $2.75 per share, anticipating the current global recession will continue well into 2009. Actions to increase cash flow are expected to generate about $2.5 billion in free cash flow in 2009, about double the level anticipated in 2008.
Capital expenditures are expected to be in the range of $1.6 to $1.8 billion, compared to $2.0 billion for 2008. Growth investments will continue for high-growth, high-margin businesses including seed products and photovoltaics. Pre-tax cost savings from the restructuring plan and productivity projects are expected to be about $730 million in 2009. DuPont anticipates a $.40 to $.50 per share increase in pension expense. While favorable conditions in global agriculture markets are expected in 2009, the company's revenue growth in 2009 will be limited by expected lower demand for non-agriculture related products and the impact of currency exchange rates.
“DuPont has market-leading global businesses, solid financial fundamentals, and strong growth opportunities,” Holliday said. “We are aggressively managing every facet within our control to maximize cash and assure we are positioned in the long term to take advantage of above-trend growth opportunities in key markets, especially where our science -based products position us among the market leaders.”
For more detail click here.
Dupont
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