DuPont to Make Cuts in Polyester Unit

DuPont Co., the largest U.S. chemicals company, said it will reduce production and eliminate 1,400 jobs, or about 14% of the work force, in its money-losing polyester unit. The maker of Dacron polyester and Stainmaster carpet fibers said it will cut 800 DuPont positions and 600 contractor positions in a move that should save $90 million annually. About 80% of the cuts will be in North America. The Wilmington, Del.-based company expects to take charges of 4 cents a share in the second quarter for job cuts and 2 cents to 4 cents a share for asset write-offs. The move is the latest in a series of steps at DuPont to cut costs and restore profitability in its polyester business, which posted a $6-million loss in the first quarter amid falling prices and sagging Asian demand. The polyester business contributed $2.8 billion to DuPont’s $24.8 billion revenue in 1998. Shares in DuPont rose $2.56 to close at $72.81 on the New York Stock Exchange.