DuPont Co., the No. 2 U.S. chemicals maker, Tuesday said quarterly profit fell after taking charges for jobs cuts and the sale of its carpet and textiles business.
But quarterly sales rose and the company increased its full-year earnings outlook, citing slower but continued growth in industrial production.
The Wilmington, Delaware-based company posted second-quarter net income of $503 million, or 50 cents per share, compared with $675 million, or 67 cents per share, a year earlier.
Before charges, DuPont earned 80 cents per share, below analysts average forecast of 81 cents, according to Reuters Estimates.
Sales grew in all five of DuPont’s key businesses, led by plastics, packaging and electronic materials, which lifted overall sales 2 percent to $7.5 billion.
DuPont took charges of 30 cents per share during the quarter, mainly to cover severance costs from the elimination of about 2,700 jobs.
Charges also included costs from the $4.1 billion sale of its fibers business, INVISTA, to Koch Industries Inc. in April, and other items.
The staff reductions are part of a $900 million cost-cutting program announced in late 2003 to combat the high costs for natural gas and oil, which DuPont needs to run its plants and make chemicals.
Rival Dow Chemical Co. turned around its results last year by cutting 8 percent of its staff.
Looking ahead, DuPont raised its 2004 earnings forecast to between $2.25 and $2.35 per share, from a prior range of $2.10 to $2.30.
Shares of the company, a component of the Dow Jones industrial average, fell 38 cents, or 0.9 percent, to close at $41.90 in Monday trade on the New York Stock Exchange.
