DuPont pledges to tackle costs following profit drop

Revenue dropped 17 percent to $4.87 billion mostly due to currency exchange and lower sales volumes. Three analysts surveyed by Zacks expected $718.8 million.

Cost cuts contributed 10 cents per share to third-quarter operating earnings of 13 cents, helping the company beat the average analyst estimate of 10 cents. Earlier this year, DuPont raised its cost-cutting targets and said it would reach its goal of slashing $1 billion in expenses by the end of 2015, ahead of schedule. The stock has increased 11 percent in the last 12 months.

DuPont’s agriculture business, its largest segment by revenue, is coming under pressure amid weaker commodity markets and because of the strength of the dollar.

Net income attributable to DuPont almost halved to $235 million, or 26 per share, in the quarter ended September 30. “Decreased volumes are due to lower seed volumes and reduced demand for insect control products, primarily in Brazil, and an about $40 million negative impact from the LaPorte manufacturing facility shutdown”.

Companywide, net sales were down 17% at DuPont in the third quarter. Electronics & Communications earned $104 million, a $14 million, or 16 percent, increase from the third quarter a year ago; Industrial Biosciences earned $52 million, up $10 million, or 24 percent, from the same quarter in 2014; and Nutrition & Health reported earnings of $102 million, up 3 percent, or $3 million, from the previous third quarter.

Amid those headwinds, interim Chief Executive Ed Breen said DuPont is taking a fresh look at its cost structure and capital allocation strategy. DuPont has already pledged to cut $1.6 billion from its budget by 2016, cuts deeper and earlier than initially announced.