DuPont Co posted a bigger-than-expected fourth-quarter loss today, hurt by restructuring-related charges, a widening global recession and a slump in consumer spending, and the chemical maker lowered its 2009 earnings outlook.
The slump in the US automotive markets has hurt DuPont badly, as it is one of the largest suppliers of paints to car makers.
The company has also been stymied by the collapse in the US housing market, since it supplies coatings, countertops and insulation products used in homebuilding.
The freeze in the global credit markets and a recession in many developed economies have further crimped growth for DuPont and its peers.
US chemical makers have also suffered from a sharp slowdown in many emerging regions, which had been driving growth for them in recent quarters.
The Wilmington, Delaware-based company saw sales volumes in the fourth quarter fall almost 20 per cent or more, in every region of the world.
DuPont posted a net loss of $629 million, or 70 cents a share, compared with a year-earlier profit of $545 million, or 60 cents a share.
Excluding special items, the loss was 28 cents a share. Analysts on average had forecast a loss of 24 cents, according to Reuters Estimates.
Quarterly sales fell 16.7 per cent to $5.82 billion, primarily due to lower volumes and the negative impact from a strong US dollar.
DuPont forecast full-year 2009 earnings of $2 to $2.50 per share, down from a prior range of $2.25 to $2.75. Analysts on average were expecting $2.22.
"For 2009, we will deliver about $730 million in fixed cost reductions and about $1 billion in reduced working capital," chief executive Ellen Kullman said in a statement.
The company also forecast first-quarter earnings of 50 cents to 70 cents a share. Wall Street was expecting 79 cents.
DuPont shares fell 1.3 per cent to $22.89 in trading before the market opened.
Reuters