3rd-Quarter Warning Issued by DuPont
DuPont Co. said a slower world economy will hold third-quarter profit to 15 cents a share or less, half of analysts’ estimates, after lower sales drove second-quarter earnings down 55%.
The chemical company also said it will cut an additional 1,500 jobs on top of the 5,300 cuts already planned, mostly in its nylon and polyester units, as part of a restructuring.
DuPont earlier this month lowered its profit forecast for its second quarter, saying slower economic growth in the U.S. and abroad was hurting sales. The chemical maker said any improvement in the U.S. economy in the third quarter won’t make up for the slowdown in Europe, Asia and South America.
Second-quarter profit from operations fell to $432 million, or 41 cents a share, as sales fell 12% to $7 billion. Results also were hurt by higher costs of raw materials, such as oil and natural gas.
DuPont is firing 5,500 employees, or 6% of its work force, and 1,300 contract workers to save at least $400 million a year by the end of 2002.
DuPont shares rose 29 cents to close at $43.21 on the NYSE.
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