DuPont To Cut 1,500 Jobs

DuPont job cuts

By Randall Chase


DOVER, Del. (AP) - Chemical maker the DuPont Co. will cut 1,500 jobs and take other steps to increase competitiveness after a third quarter in which earnings fell sharply.

The Wilmington, Del.-based company reported net income of $10 million Tuesday, or a penny per share, compared with $452 million, or 48 cents per share, for the same period last year. Excluding one-time items, DuPont earned 44 cents per share, compared with 69 cents per share for last year's third quarter.

The results fell short of the average estimate of 46 cents per share, and Dupont's stock slid 4 percent in premarket trading.

Revenue totaled about $7.4 billion, down 9 percent from $8.1 billion.

CEO Ellen Kullman said weaker than expected demand in titanium dioxide and photovoltaic markets contributed to the decline.

"Today, we are taking additional actions to improve competitiveness and accelerate market-driven innovation and growth by fine-tuning the organization, eliminating costs and expanding beyond our everyday focus on productivity," Kullman said. "We continue to execute well in many parts of the company, and certain segments are outperforming despite market volatility."

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DuPont noted that, beginning with the third quarter, its performance coatings segment has been classified as discontinued operations and excluded from the company's continuing operations results on a retroactive basis. The company announced in August that it was selling the performance coatings business, which caters to the automotive and industrial sectors, for $4.9 billion to The Carlyle Group, a private equity firm.

DuPont reported a loss from continuing operations of $40 million, or 5 cents a share for the quarter, compared to a gain of $376 million, or 39 cents per share, in the prior year. Excluding one-time items, third-quarter earnings from continuing operations totaled $302 million, or 32 cents per share, down from $579 million, or 60 cents per share, last year.

Kullman said DuPont's restructuring plan will deliver pretax cost savings of about $450 million by eliminating costs supporting the performance coatings unit and taking additional steps to improve competitiveness. The plan includes eliminating about 1,500 positions globally over in the next 12 to 18 months.

More: Sony To Cut 2,000 Jobs

DuPont said it remains on track to achieve its full-year 2012 productivity targets for both fixed costs and working capital, and that it expects 2012 earnings from continuing operations, excluding significant items, to range from $3.25 to $3.30 per share, compared to prior-year earnings of $3.55 per share on a comparable basis.

For the quarter, volumes were down in all regions except Latin America, led by a 10 percent decline in the Asia-Pacific region. Volume declines and currency effects led to sales declines worldwide, with sales dropping 15 percent in Asia-Pacific and the Europe, Middle East and Africa region.

Sales in the electronics and communications segment were down 28 percent, with volume declining 20 percent. The performance chemicals segment saw an 18 percent decline in volume and 19 percent drop in sales.

On the flip side, the agriculture and health and nutrition segments saw sales gains of 4 percent each.


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36 Comments

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eledude

Probably being cut on the advice of Bain Capital!

October 25 2012 at 12:38 PM Report abuse rate up rate down Reply
in1nuthouse

Yea, they make $26.1 Billion every year and if we give them a tax break to keep MORE money you think they would give the jobs back????

My grandmother said, "Money is never enough" and she was so right. The more you get the more you want....

October 25 2012 at 11:41 AM Report abuse rate up rate down Reply
rich lapinski

more results of obamanomics.

October 25 2012 at 10:21 AM Report abuse +1 rate up rate down Reply
pineway259

This is all part of the Obama job recovery plan. Now there are an additional 1500 US workers available for the Obama green jobs.

October 25 2012 at 10:15 AM Report abuse +1 rate up rate down Reply
1 reply to pineway259's comment
Libby

these are jobs globally notUS jobs only - there is no information to suggest that these jobs are all domestic Perhaps we should not rush to judgment until all the facts are in - but wait it is an election year so that is never going to happen from either side of the aisle

October 25 2012 at 5:46 PM Report abuse rate up rate down Reply
KATHI AND JOHN

this didn't happen.......obanie says things are great good jobs areeverywhere....give me 4 more years.....No THANKS O

October 25 2012 at 9:41 AM Report abuse +2 rate up rate down Reply
Tom Harrell

I'd like to see the CEO BONUS report for these companies.

October 25 2012 at 9:15 AM Report abuse +1 rate up rate down Reply
lifehub

That has-been actor-turned-Obama-spokesperson say on his dull tv ad: ".....And the assembly lines are humming again". Right.

October 25 2012 at 8:41 AM Report abuse +1 rate up rate down Reply
lifehub

Yep, another fine unemployment mess under Obama. Expect more.

October 25 2012 at 8:40 AM Report abuse +2 rate up rate down Reply
1 reply to lifehub's comment
Tom Harrell

Bet you were syaing the same thing in 07, about GEORGE, when GM and the rest were laying off people by the HUNDREDS of THOUSANDS, Weren't ya ? ? ?

October 25 2012 at 9:17 AM Report abuse rate up rate down Reply
rebecca jean

obozo is out on the stump telling us things are getting better...VOTE ROMNEY

October 25 2012 at 7:08 AM Report abuse +5 rate up rate down Reply
makimaus

'"Today, we are taking additional actions to improve competitiveness and accelerate market-driven innovation and growth by fine-tuning the organization, eliminating costs and expanding beyond our everyday focus on productivity," Kullman said.'

Translation: "Today we are taking additional actions to improve our bottom line and accelerate profit by fine-tuning our greed, eliminating jobs, and expanding our personal salaries beyond our personal needs."

October 25 2012 at 5:14 AM Report abuse +1 rate up rate down Reply

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