Citing global anxiety, DuPont gets cautious on 2012

WILMINGTON, Del., Tue Jul 24, 2012 – DuPont expects 2012 earnings to come in at the bottom of its prior forecast range, due in part to economic uncertainty circling the globe, the maker of chemicals, hybrid seeds and Kevlar bulletproof fiber said on Tuesday.
The updated forecast, for earnings at the “lower end” of a range of $4.20 to $4.40 per share, came after the company posted a higher-than-expected profit for the second quarter.
Analysts on average expect earnings of $4.25 per share this year, meaning DuPont could fall short of Wall Street’s expectations.
Higher taxes and currency conversion should also weigh on results, said Chief Executive Ellen Kullman.
“We’re seeing sequential improvement in many markets that have been very sketchy in the first half of the year,” Kullman said on a conference call with analysts and investors. “Our ability to forecast is not as great as we used to think it was.”
DuPont reported second-quarter net income of $1.18 billion, or $1.25 per share, down from $1.22 billion, or $1.29 per share, a year earlier.
Excluding one-time items, the company earned $1.48 per share. By that measure, analysts expected $1.46, according to Thomson Reuters I/B/E/S.
Revenue rose 8 percent to $11.28 billion. Analysts had expected $11.27 billion.
Sales jumped the most in North America and Latin America, helped largely by strong sales of seeds and other agricultural products. Kullman said she would closely watch North American sales to industrial, commercial and housing customers.