DuPont Raises Profit Outlook

Posted by Matt Hopkins|15 April 2008

DuPont raised its profit outlook last week based on strong growth in its agricultural business and emerging markets, according to a Reuters article. Higher pricing and gains from currency translations will also help the company overcome the impact of significantly higher costs for raw materials and the lagging US home market.

In the past few months, DuPont and peers like Monsanto have gained greatly from the agricultural sector’s global boom, which has been spurred by the rising purchasing power of the middle-class population in developing countries and increased demand for biofuel crops.

DuPont now expects to earn about US $1.29 a share in the first quarter, compared with its previously issued outlook of $1.14 to $1.19. Analysts on average had forecast profit of $1.17 a share, according to Reuters Estimates.

“Growth in agriculture and emerging markets, along with continued cost productivity gains, are enabling us to overcome challenges in certain US markets and higher cost ingredients,” Chief Executive Charles Holliday said in a statement.

The company expects first-half earnings growth of about 10%, with second-quarter profit of about $1.05 a share. DuPont also raised the lower end of its full-year outlook by 5 cents a share to a range of $3.40 to $3.55. Wall Street was expecting $3.44.