DuPont Co. (NYSE: DD) boosts its profit target for 2016 as the company reported first-quarter earnings that top analysts’ estimates.
The company said that the first-quarter earnings were $1.2 billion, or $1.39 a share, up from $1 billion, or $1.13 a share, a year earlier. Excluding certain items, operating earnings were $1.11 billion, or $1.26 a share.Analysts surveyed by Thomson Reuters had project operating income of $1.04 a share for the quarter ended March 31.
DuPont’s sales fell 4 percent to $7.4 billion in the latest quarter. But it still beat analysts’ estimate of $7.19 billion.
The better-than-expected profit was partly due to company’s effort of cutting expense, representing about 10 percent of total workforce. The company had announced a cost-saving plan to cut 5,000 employees in last December. DuPont also said it plans to eliminate $730 million in annual costs this year, with overall operating costs falling 7% in the first quarter versus the year-ago period.
The company boosts its full-year operating earnings guidance by 10 cents a share to $3.05 to $3.20 a share, saying that weaker U.S dollar against “most currencies” over the past three months help mitigate currency effect on sales. As we all know, stronger dollar will make export products more expensive in other countries.
Solid execution, local price and product mix gains, and higher corn area led to a strong start to the year for our ag business,” Chief Executive Officer Ed Breen said in the statement. “Our other businesses generally performed well, slightly above our expectations.”
DuPont shares rose 2.21 percent to $67.43 at 1:44 p.m. in New York.